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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

You are viewing the version of the document as on 2021-05-14.

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
          1. (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
        1. 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
            1. (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
          1. (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 loan217154or a limited interest second charge credit union loan within the meaning of article 61A(1) or (2) of the Regulated Activities Order; and217158143
        1. (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
          1. (B) the contract is a consumer credit back book mortgage contract within the meaning of article 2 of the MCD Order.158
      1. 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

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