regulated mortgage contract

1. (a) (in relation to a contract) a contract which:
   1. (i) (in accordance with article 61(3) of the Regulated Activities Order) at the time it is entered into, meets the following conditions:
      1. ( A ) a lender provides credit to an individual or to trustees (the 'borrower'); and
      1. ( B ) the obligation of the borrower to repay is secured by a mortgage on land, at least 40% of which is used, or is intended to be used, in the case of credit provided to an individual, as or in connection with a dwelling; or (in the case of credit provided to a trustee who is not an individual), as or in connection with a dwelling by an individual who is a beneficiary of the trust, or by a related person;
   1. where “land” for this purpose means:
      1. (C) in relation to a contract entered into before IP completion day:
         1. (I) land in the United Kingdom; or
         1. (II) if the contract was entered into on or after 21 March 2016, land in the United Kingdom or within the territory of a State that was an EEA State at the time the contract was entered into; and
      1. (D) in relation to a contract entered into on or after IP completion day, land in the United Kingdom.
      (ii) is not a home purchase plan, a limited payment second charge bridging loan, a second charge business loan, an investment property loan, an exempt consumer buy-to-let mortgage contract, an exempt equitable mortgage bridging loan, an exempt housing authority loan or a limited interest second charge credit union loan within the meaning of article 61A(1) or (2) of the Regulated Activities Order; and
   1. (iii) if the contract was entered into before 21 March 2016:
      1. (A) at the time the contract was entered into, entering into the contract constituted the regulated activity of entering into a regulated mortgage contract; or
      1. (B) the contract is a consumer credit back book mortgage contract within the meaning of article 2 of the MCD Order.
1. (b) (in relation to a specified investment) the investment, specified in article 88 of the Regulated Activities Order, which is rights under a regulated mortgage contract within (a).

[Note: articles 3(1)(a) and 4(2) of the MCD]