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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.

CBTL credit agreement

    179a buy-to-let credit agreement which is not entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by him. For this purpose examples of when a borrower is to be regarded as entering into a buy-to-let credit agreement for the purpose of a business carried on, or intended to be carried on by him are:

      1. (a)
        1. (i) the borrower previously purchased, or is entering into a buy-to-let credit agreement in order to finance the purchase by him of, the land to which the agreement relates; and
        1. (ii) at the time of the purchase the borrower intended that the land would be occupied as a dwelling on the basis of a rental agreement and would not at any time be occupied as a dwelling by the borrower or by a related person, or, where the borrower has not yet purchased the land, the borrower has such an intention at the time of entering into the buy-to-let credit agreement; and
        1. (iii) where the borrower has purchased the land, since the time of the purchase the land has not at any time been occupied as a dwelling by the borrower or by a related person; or
      1. (b) the borrower is the owner of land, other than the land to which the buy-to-let credit agreement relates, which is:
        1. (i) occupied as a dwelling on the basis of a rental agreement and is not occupied as a dwelling by the borrower or by a related person; or
        1. (ii) subject to a mortgage under a buy-to-let credit agreement.

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