Unregulated mortgage contracts
The term regulated and unregulated refer to the regulation of the mortgage contracts by the Financial Services Authority (FSA). In 2004 legislation came into force that meant certain contracts were regulated by the FSA.
The impacts in connection with Bridging Finance
If the mortgage contract which forms the security for the loan is regulated, then you are given much more protection and a right to have the Financial Ombudsmen consider any grievances that you may have against a lender.
How can you protect yourself if the contract is unregulated
We provide impartial advice that will consider the requirements and help you avoid the common mistakes. In addition our preference it to use lenders that are part of the ASTL and this provides a route to raise a grievance against a lender, should it arise.
Is my loan going to be regulated or non regulated
There are a number of factors that need to be considered by us to decide this. As a some brief guidelines, contacts are unregulated if any of the following conditions are met:
1) The loan isn't to an individualor trustee
2) The loan is secured by a 2nd or 3rd charge
3) If more than 40% of the land is used or intended to be used, or in connection with, a dwelling by the borrower or a related person.
Related person means either the borrows spouse, parent, brother, sister, child, grandparent or grand child.