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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 EEA;
        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.

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