Regulated Mortgages & Remortgages
What is this?
Regulated Mortgages (and remortgages) are loans that are secured on property in which the borrower or a close family member resides. For the mortgage to be regulated by the Financial Services Authority, the owner (or family member) must occupy at least 40% of the property floor area. A mortgage on commercial premises or investment property (Buy to Let) can be a regulated mortgage if the owner or family member resides in the property. Bridging loans used to purchase residential properties at auction, for example, are also regulated.
Who is it for?
Regulated Mortgages are normally available to owner occupiers of residential properties (but refer to the above). Regulated mortgages are only available from lenders and intermediaries (Brokers and IFA's) who have been authorised by the Financial Services Authority to advise on and/or arrange these products.
Who is it not for?
Regulated Mortgages are not normally used to buy or refinance Buy To Let or Commercial properties (but refer to the above). There are very few lenders who will offer regulated mortgages on let properties. This is because the family member may have rights of occupancy that would prevent the lender taking possession if the mortgage were not paid.
