Regulated Mortgage Contract

The Financial Services Authority FSA has a very strict definition of the mortgages that it actually regulates. In order to qualify as a regulated mortgage contract the following conditions have to be met

• a lender provides credit to an individual or to trustees the borrower;
• the obligation of the borrower to repay is secured by a first legal mortgage on land other than timeshare accommodation in the United Kingdom at least 40 of which is used or is intended to be used as or in connection with a dwelling by the borrower or in the case of credit provided to trustees by an individual who is a beneficiary of the trust or by a person who is in relation to the borrower or in the case of credit provided to trustees a beneficiary of the trust i.e. spouse partner or parent brother sister child grandparent or grandchild.

2009-02-17 00:00:00 © Moneyextra.com