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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.

MCD exempt lifetime mortgage

    99a regulated mortgage contract or an article 3(1)(b) credit agreement under which the lender:

      1. (a) contributes a lump sum, periodic payments or other forms of credit disbursement in return for a sum deriving from the future sale of residential immovable property or a right relating to residential immovable property; and
      1. (b) will not seek repayment of the capital until the occurrence of one or more of the specified life events, unless the customer breaches their contractual obligations (including any obligation to pay interest during the term) which allows the lender to terminate the agreement.

    [Note: article 3(2)(a) of the MCD]