381. Withdrawal from a prospective land mortgage.

The Consumer Credit Act 1974 does not generally apply to loans granted by most major banks, building societies and insurance companies but the provision providing an opportunity for withdrawing from a prospective land mortgage1 may be applicable if the mortgage is:

  1.  

    (1)     to be granted to an individual or partnership by a non-exempt lender; and

  2.  

    (2)     is not a loan for the purchase of land.

The requirements of that provision will not normally be relevant in circumstances where the buyer client is purchasing land with the assistance of a first mortgage from an institutional lender but if the client already