PERG 4.13 Other exemptions

Certain named persons are exempted by the Exemption Order from the need to obtain authorisation. The following bodies have exemptions (which are explained in more detail in this section) in relation to carrying on by them of the regulated mortgage activities:

1. (1)

   [deleted]

2. (2)

   registered social landlords in England and Wales within the meaning of Part I of the Housing Act 1996 (paragraph 48(2)(a) of the Schedule to the Exemption Order) but not their subsidiaries;

3. (3)

   registered social landlords in Scotland within the meaning of the Housing (Scotland) Act 2001 (paragraph 48(2)(b) of the Schedule to the Exemption Order) but not their subsidiaries;

4. (4A)

   The Homes and Communities Agency (paragraph 48(2)(ca) of the Schedule to the Exemption Order);

5. (5)

   Scottish Homes (paragraph 48(2)(d) of the Schedule to the Exemption Order);

6. (6)

   The Northern Ireland Housing Executive (paragraph 48(2)(e) of the Schedule to the Exemption Order);

7. (7)

   Communities Scotland (paragraph 48(2)(f) of the Schedule to the Exemption Order);

8. (8)

   a housing association within the meaning of Part 2 of the Housing (Northern Ireland) Order 1992 (paragraph 48(2)(g) of the Schedule to the Exemption Order); and

9. (9)

   a wholly-owned subsidiary of a registered social landlord within the meaning of Part I of the Housing Act 1996 (paragraph 48(3) of the Schedule to the Exemption Order).

The bodies in PERG 4.13.1 G are exempt in relation to the regulated activity of arranging the variation of a regulated mortgage contract (article 25A(1)(b) of the Regulated Activities Order).

The bodies in PERG 4.13.1 G are exempt in relation to the following regulated activities:

1. (1)

   arranging (bringing about) regulated mortgage contracts (except in relation to variations) (article 25A(1)(a) and (2A));

2. (2)

   advising on regulated mortgage contracts (article 53A);

3. (3)

   entering into a regulated mortgage contract (article 61(1)); and

4. (4)

   administering a regulated mortgage contract (article 61(2)).

The exemption in PERG 4.13.3 G only applies in relation to regulated mortgage contracts entered into before 21 March 2016 and to a limited range of regulated mortgage contracts entered into on or after that date. These are set out in the table in PERG 4.13.5 G.

A bridging loan is exempt if it meets the following conditions:

1. (1)

   it is:

   1. (a)

      either of no fixed duration; or

   2. (b)

      is due to be repaid within 12 months; and

2. (2)

   the borrower is:

   1. (a)

      an individual; and

   2. (b)

      acting for purposes which are outside their trade, business or profession; and

3. (3)

   the loan is used by the borrower as a temporary financing solution while transitioning to another financial arrangement for the land.

A loan is exempted as a restricted public loan if it meets the following conditions:

1. (1)

   it is granted to a restricted public under a statutory provision with a general interest purpose; and

2. (2)

   it meets the condition in (a) or (b):

   1. (a)

      it is:

      1. (i)

         free of interest; or

      2. (ii)

         at lower borrowing rates than those prevailing on the market; or

   2. (b)

      it meets the condition in (i) and (ii):

      1. (i)

         it is on other terms which are more favourable than those prevailing on the market; and

      2. (ii)

         it is on other terms which are more favourable than those prevailing on the market; and

3. (3)

   the borrower receives timely information on the main features, risks and costs of the loan at the pre-contractual stage; and

4. (4)

   any advertising of the loan is fair, clear and not misleading.