The following Banking & Finance Q&A produced in partnership with Thomas Samuels of Gough Square Chambers provides comprehensive and up to date legal information covering:
Insofar as the reference to residential property 'owned by a director' indicates that the borrower is an incorporated entity, the short answer to this question is ‘no’.
A regulated mortgage (or ‘regulated mortgage contract’) is a category of secured lending specifically defined by Article 61 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001, SI 2001/544 (RAO). Article 61 was amended from 21 March 2016 and now defines a regulated mortgage contract by reference to four characteristics:
a contract under which a person provides credit to an individual or to trustees (the borrower)
the contract provides for the obligation of the borrower to repay to be secured by a mortgage on land in the EEA
at least 40% of the land is to be used:
in the case of credit provided to an individual, as or in connection with a dwelling
in the case of credit provided to a trustee which is not an individual, as or in connection with a dwelling by an individual who is a beneficiary of the trust, or by a regulated person
For the avoidance of doubt, prior to 21 March 2016, the definition was similar save that the second characteristic referred to the loan being 'secured by
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