Content Options:

Add to favourites

View Options:

More Resources:

External link Handbook Publications

You are viewing the version of the document as on 2023-12-22.

regulated mortgage contract

  1. (a) (in relation to a contract) a contract which:42
    1. 42(i) (in accordance with article 61(3) of the Regulated Activities Order)42 at the time it is entered into, meets the following conditions:
      1. (42A42) a lender provides credit to an individual or to trustees (the 'borrower'); and
      2. (42B42) the obligation of the borrower to repay is secured by a 143mortgage on land192143,143 at least 40% of which is used, or is intended to be used, in the case of credit provided to an individual, as or in connection with a dwelling; or (in the case of credit provided to a trustee who is not an individual), as or in connection with a dwelling by an individual who is a beneficiary of the trust, or by a related person143;192
      3. where “land” for this purpose means:192
        1. (C) in relation to a contract entered into before IP completion day203:192
          1. (I) land in the United Kingdom; or192
          2. (II) if the contract was entered into on or after 21 March 2016, land in the United Kingdom or within the territory of a State that was an EEA State at the time the contract was entered into; and192
        2. (D) in relation to a contract entered into on or after IP completion day203, land in the United Kingdom.192
        42(ii) is not a home purchase plan, a limited payment second charge bridging loan, a second charge business loan, an investment property loan, an exempt consumer buy-to-let mortgage contract, an exempt equitable mortgage bridging loan, an exempt housing authority loan246154or a limited interest second charge credit union loan within the meaning of article 61A(1) or (2) of the Regulated Activities Order; and246158143
      4. (iii) if the contract was entered into before 21 March 2016:158
        1. (A) at the time the contract was entered into, entering into the contract constituted the regulated activity of entering into a regulated mortgage contract; or 158
        2. (B) the contract is a consumer credit back book mortgage contract within the meaning of article 2 of the MCD Order.158
    2. 14 17(b) (in relation to a specified investment) the investment, specified in article 88 of the Regulated Activities Order, which is rights under a regulated mortgage contract within (a).

    [Note: articles 3(1)(a) and 4(2) of the MCD]143

    42