# Related provisions for BIPRU 3.1.5

**1 - 20 of 73 items.**

- (1)
The application of MIPRU 4.2F.33 R may be illustrated by an example. Where a first-charge mortgage exposure of £50,000 from another lender is secured on residential property in the United Kingdom that satisfies the criteria in MIPRU 4.2F.4 R to MIPRU 4.2F.29 R and the value of that property is £100,000, then a firm with a second-charge mortgage of £60,000 on the same property may treat £30,000 of that exposure as fully and completely secured and risk weight it at 35%, treat a further £20,000 as unsecured and risk weight it at 75%, and risk weight the remaining £10,000 at 100%. A diagrammatic illustration of this example is in (2).

- (2)
A diagrammatic illustration of the example in (1)

**Property value****Exposure and risk weightings****Example**£10,000 of second-charge - risk weighted at 100%

• Remaining second-charge mortgage, i.e. £10,000

**£100,000**£20,000 of second-charge - risk weighted at 75%

• Second-charge mortgage up to maximum of 100% of property value, i.e. £20,000

£30,000 of second-charge - risk weighted at 35%

• Second-charge mortgage up to maximum of 80% of property value, i.e. £30,000

First-charge mortgage (£50,000)

• Other lender has first-charge over property with outstanding loan balance of £50,000

Table: Exposures in the form of funds for which a credit assessment by a nominated ECAI is available

This table belongs to MIPRU 4.2F.40 R.

Credit quality step |
1 |
2 |
3 |
4 |
5 |
6 |

Risk weight |
20% |
50% |
100% |
100% |
150% |
150% |