Entering into a regulated mortgage contract as lender is a specified kind of activity.

Administering a regulated mortgage contract is also a specified kind of activity, where the contract was entered into F1by way of business after the coming into force of this article.

For the purposes of this article—

• “borrower” and “lender” have the meaning set out in article 61(3) (regulated mortgage contracts);

• “borrower-lender agreement”, “borrower-lender-supplier agreement”, “credit union” and “total charge for credit” have the meanings set out in article 60L (interpretation of Chapter 14A);

• “bridging loan” has the meaning given by Article 4(23) of the mortgages directive;

• “buy-to-let mortgage contract” has the meaning given in article 4 of the Mortgage Credit Directive Order 2015 (interpretation of Part 3);

• “exempt consumer buy-to-let mortgage contract” is a contract that, at the time it is entered into, is a consumer buy-to-let mortgage contract within the meaning of article 4 of the Mortgage Credit Directive Order 2015 and—

  1. a

     is of a kind to which the mortgages directive does not apply by virtue of Article 3(2) of that directive; or

  2. b

     is a bridging loan;

• “investment property loan” is a contract that, at the time it is entered into, meets the conditions in paragraphs (i) to (iii) of article 61(3)(a) and the following conditions—

  1. a

     less than 40% of the land subject to the mortgage is used, or 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 related person; and

  2. b

     the agreement is entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the borrower;

• “limited payment second charge bridging loan” is a contract that, at the time it is entered into, meets the conditions in paragraphs (i) to (iii) of article 61(3)(a) and the following conditions—

  1. a

     it is a borrower-lender-supplier agreement financing the purchase of land;

  2. b

     it is used by the borrower as a temporary financing solution while transitioning to another financial arrangement for the land subject to the mortgage;

  3. c

     the mortgage ranks in priority behind one or more other mortgages affecting the land in question; and

  4. d

     the number of payments to be made by the borrower under the contract is not more than four;

• “limited interest second charge credit union loan” is a contract that, at the time it is entered into, meets the conditions in paragraphs (i) to (iii) of article 61(3)(a) and the following conditions—

  1. a

     it is a borrower-lender agreement;

  2. b

     the mortgage ranks in priority behind one or more other mortgages affecting the land in question;

  3. c

     the lender is a credit union; and

  4. d

     the rate of the total charge for credit does not exceed 42.6 per cent;

• “payment” has the meaning set out in article 60F(8) (exempt agreement: exemptions relating to number of repayments to be made);

• “regulated home purchase plan” has the meaning set out in article 63F(3)(a) (entering into and administering regulated home purchase plans);

• “related person” in relation to the borrower or (in the case of credit provided to trustees) a beneficiary of the trust, means—

  1. a

     that person's spouse or civil partner;

  2. b

     a person (whether or not of the opposite sex) whose relationship with that person has the characteristics of the relationship between husband and wife; or

  3. c

     that person's parent, brother, sister, child, grandparent or grandchild;

• “second charge business loan” is a contract that, at the time it is entered into, meets the conditions in paragraphs (i) to (iii) of article 61(3)(a) and the following conditions—

  1. a

     the lender provides the borrower with credit exceeding £25,000;

  2. b

     the mortgage ranks in priority behind one or more other mortgages affecting the land in question; and

  3. c

     the agreement is entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the borrower.