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PERG 4.13 Other exemptions

PERG 4.13.1GRP

Certain named persons are exempted by the Exemption Order from the need to obtain authorisation. The following bodies have exemptions (which are explained in more detail in this section)3 in relation to carrying on by them of the regulated mortgage activities:

33
  1. (1)

    [deleted]2

    2
  2. (2)

    registered social landlords in England and Wales within the meaning of Part I of the Housing Act 1996 (paragraph 48(2)1(a) of the Schedule to the Exemption Order) but not their subsidiaries;

  3. (3)

    registered social landlords in Scotland within the meaning of the Housing (Scotland) Act 2001 (paragraph 48(2)(b) of the Schedule to the Exemption Order) but not their subsidiaries;

  4. (4A)

    1The Homes and Communities Agency (paragraph 48(2)(ca) of the Schedule to the Exemption Order);

  5. (5)

    Scottish Homes (paragraph 48(2)1(d) of the Schedule to the Exemption Order);

    3
  6. (6)

    The Northern Ireland Housing Executive (paragraph 48(2)1(e) of the Schedule to the Exemption Order);3

  7. (7)

    Communities Scotland (paragraph 48(2)(f) of the Schedule to the Exemption Order);3

  8. (8)

    a housing association within the meaning of Part 2 of the Housing (Northern Ireland) Order 1992 (paragraph 48(2)(g) of the Schedule to the Exemption Order); and3

  9. (9)

    a wholly-owned subsidiary of a registered social landlord within the meaning of Part I of the Housing Act 1996 (paragraph 48(3) of the Schedule to the Exemption Order).3

PERG 4.13.2GRP

3The bodies in PERG 4.13.1 G are exempt in relation to the regulated activity of arranging the variation of a regulated mortgage contract (article 25A(1)(b) of the Regulated Activities Order).

PERG 4.13.3GRP

3The bodies in PERG 4.13.1 G are exempt in relation to the following regulated activities:

  1. (1)

    arranging (bringing about) regulated mortgage contracts (except in relation to variations) (article 25A(1)(a) and (2A));

  2. (2)

    advising on regulated mortgage contracts (article 53A);

  3. (3)

    entering into a regulated mortgage contract (article 61(1)); and

  4. (4)

    administering a regulated mortgage contract (article 61(2)).

PERG 4.13.4GRP

3The exemption in PERG 4.13.3 G only applies in relation to regulated mortgage contracts entered into before 21 March 2016 and4 to a limited range of regulated mortgage contracts entered into on or after that date4. These are set out in the table in PERG 4.13.5 G.

PERG 4.13.5GRP

3Exempted regulated mortgage contracts

Type of regulated mortgage contract

Explanation

Exempted under article 3(2) of the Mortgage Credit Directive

See PERG 4.10A.5G (1) to PERG 4.10A.5G (6)

Bridging loan

See PERG 4.13.6 G

Restricted public loan

See PERG 4.13.7 G

PERG 4.13.6GRP

3A bridging loan is exempt if it meets the following conditions:

  1. (1)

    it is:

    1. (a)

      either of no fixed duration; or

    2. (b)

      is due to be repaid within 12 months; and

  2. (2)

    the borrower is:

    1. (a)

      an individual; and

    2. (b)

      acting for purposes which are outside their trade, business or profession; and

  3. (3)

    the loan is used by the borrower as a temporary financing solution while transitioning to another financial arrangement for the land.

PERG 4.13.7GRP

3A loan is exempted as a restricted public loan if it meets the following conditions:

  1. (1)

    it is granted to a restricted public under a statutory provision with a general interest purpose; and

  2. (2)

    it meets the condition in (a) or (b):

    1. (a)

      it is:

      1. (i)

        free of interest; or

      2. (ii)

        at lower borrowing rates than those prevailing on the market; or

    2. (b)

      it meets the condition in (i) and (ii):

      1. (i)

        it is on other terms which are more favourable than those prevailing on the market; and

      2. (ii)

        it is on other terms which are more favourable than those prevailing on the market; and

  3. (3)

    the borrower receives timely information on the main features, risks and costs of the loan at the pre-contractual stage; and

  4. (4)

    any advertising of the loan is fair, clear and not misleading.