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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.

buy-to-let credit agreement

    59a contract that:

      1. (a) at the time it is entered into:
        1. (i) is one under which a lender provides credit to an individual or to trustees (the 'borrower');
        1. (ii) provides for the obligation of the borrower to repay to be secured by a mortgage on land in the UK75;
        1. (iii) at least 40% of the land is used, or is intended to be used:
          1. (A) (in the case of credit provided to an individual) as or in connection with a dwelling; or
          1. (B) (in the case of credit provided to a trustee which is not an individual) as or in connection with a dwelling by an individual who is a beneficiary of the trust or a related person; and
        1. (iv) provides that the land secured by the mortgage cannot at any time be occupied as a dwelling by the borrower or a related person;
        1. and is to be occupied as a dwelling on the basis of a rental agreement; or
      1. (b) is a regulated credit agreement which is an article 3(1)(b) credit agreement and provides that the land, or existing or projected building, to which it relates;
        1. (i) cannot at any time be occupied as a dwelling by the borrower or a related person; and
        1. (ii) is to be occupied as a dwelling on the basis of a rental agreement.

    where “land” for these purposes means75:

      1. (c) in relation to a contract entered into before IP completion day77:
        1. (i) land in the United Kingdom; or
        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; and
      1. (d) in relation to a contract entered into on or after IP completion day77, land in the United Kingdom.

    [Note: article 4(1) of the MCD Order]