welshperson3 v blemain finance - 140A Unfair relationship -started court proceedings

[welshperson3]

Consumer

Protection

from Unfair

Trading

Regulations

2008

 

TABLE FOR ASSESSING

UNFAIRNESS

 

 

REGULATION 3

 

Contrary to the

requirements

of professional

diligence

 

 

 

REGULATION 5

False or deceptive

practice in relation

to a specific list of

key factors

 

 

REGULATION 6

 

Omission (or unclear/

untimely provision) of

material information

 

REGULATION 7

 

Aggressive practice

by harassment,

coercion or undue

influence

[welshperson3]

How about

[ATTACH=CONFIG]40944[/ATTACH]

Did Blemain pay your broker a secret commission?

Then have a look at this

This is what they supply to brokers, Joe public never supposed to see this

[ATTACH=CONFIG]40943[/ATTACH]

[dx100uk]

scan the required letters/agreements/sheets - as a picture[jpg] file

don't forget you can use a mobile phone or a digital camera too!!

'

BUT......

ENSURE: remove all pers info inc. barcodes etc using paint program

but leave all figures and dates. {DO NOT USE A BIRO OR PEN OR USE SEE THRU TAPE OR LABELS]

DO NOT USE ANY PDF EDITOR TO BLANK STUFF, THAT CAN BE REMOVED

DO IT IN PAINT.EXE or any photo editing program

convert existing PC files to PDF [office has an installable print to PDF option]

..

goto one of the many free online pdf converter websites [http://docupub.com/pdfconvert/]

it would be better to upload a multipage pdf if

you have many images too rather than many single pdfs

.

or if you have PDF as an installed printer drive use that

or use word and save as pdf

try and logically name your file so people know what it is.

i'e Default notice dd-mm-yyyy

.

open a new msg box here

hit go advanced below the msg box

hit manage attachments below that box

hit the add files button on the top right

hit select files, navigate to your file on your pc

hit upload files

.

we are awaiting admin to action the forum creation request

 

dx

[welshperson3]

What it says in the documents above and is quoted word for word

 

Brokers fee

 

May be charged on all plans and must be agreed with the client.

 

 

 

 

Commissions

 

The maximum commission on one case is £10,000 with payment protection and £8,000 without, NOTE this dose not include the brokers fee.all commissions are paid on the loan advance (not including payment protection or fees) i.e. the amount paid to the client including the redemption of any finance.

 

Notice that they say you must tell the client of any brokers fee, but the most important thing is that they don’t say to tell the client about the commission.

 

 

The second document has exact calculations of what % commission is paid on what type of loan agreement, the higher the interest rate you pay on the loan, then the higher % commission the broker gets

 

 

EXAMPLE

 

If your loan is %9.8 interest rate the commission rate is % 1.25

 

If your loan is %17.7-interest rate the commission rate is %10.5

 

 

This works out that the higher the interest rate that the broker gets you the more money he makes..

 

 

 

If the broker gets you a loan for £30k at the best interest rate for you he makes approximately £300 on top of his broker fees.

 

If the broker gets you a loan for £30kat the worst interest rate for you he makes approximately £3000 on top of his broker fees.

 

 

I’m sure all the brokers out there would have gone for the £300 and not bent anyone over for the £3000.

 

 

Wp3

Edited January 24, 2013 by welshperson3

[welshperson3]

Thanks DX

I think I might have some information that may help people when going up against blemain and I don’t want it to fade into this thread.

wp3

[Gallahad]

They paid £11,000 commission on my loan of 140k

g

[dx100uk]

no bother at all

 

we'll do a bit of work too and bring other thread on BH over to it.

 

prep is the key too from the users

 

i know this is a hell of a long thread

but if it need splitting into individual 'people' cases threads

and info thread let meknow

 

just give us the post numbers and we'll do it. [ie posts 12-25 make new thread for XXX user] etc etc

 

we always find it better and it shows the extent of issues whe things are split up

 

also gives weight to complaints

 

dx

[welshperson3]

Hi g

 

 

They must have liked your broker as the documents say a maximum of 10K.

 

All kidding aside it would be to do with the time you took out your loan as the document I posted is for brokers, and what and how they paid it changed over the years.

 

G if you know how much they paid your broker then I gather you are alright on this point, but if your looking for more evidence that they paid commissions then it is in their accounts, filed at company house and available to the public. (just ask if you need them).

 

Wp3

Edited January 24, 2013 by welshperson3

[Gallahad]

I am far from alright about it WP and it could have been 1k brokers fee and 10k commission so you could be right. I took a barristers opinion through a no win no fee solicitor. I wanted to go for unfair contract and hidden commission but the opinion was that there was no case law precedent to make my case strong enough. Which when I one realises that one of the conditions in the contract is that any and all money paid out on an insurance claim must be paid straight to Blemain so if i had a fire or flood I would have to live in the house as it ends up while they pocket the money seems absurdly unfair. Not just to me but to my building society who hold the first charge.

G

[welshperson3]

Hi g

What I mean when I say you must be alright with it , is the fact you now know that they paid a commission on your loan, and your not looking for information on whether they did or didn’t pay a commission,

　

As for the terms and conditions of your loan yours is unregulated, and I have seen the terms for unregulated most terms are the same as a regulated agreement, but im not %100 but chech out your terms and see if they allow blemain to do the following,

　

Do the terms of your agreement allow blemain to do the following.

　

1 very the interest rate whenever they want ?

2 very the amount you pay each month whenever they want ?

3 very the amount of months the agreement runs for ?

　

If you answer yes to the above then think about what you signed up for.

　

You signed an agreement that would allow. a company to take every penny you earn for the rest of your life.

　

I’m not saying this will happen but you have an agreement that will allow the following to happen if blemain wanted to do it.

　

Blemain raise your interest rate from %%10 to %.100 pa, your monthly payments go up 10x what you are paying now, you cant afford this payment so blemain extend the term of the loan to 100 years

The terms of the agreements allow blemain to do what they want when they want READ THEN FOR YOURSELF

　

If blemain say they have taken out insurance and are charging you for it then there are two ways to deal with this.

　

1 it has to be fit for purpose, all the PPI claims are basicly that it was not fit for purpose

Buildings insurance is to rebuild the building in the event of something bad happening to the building, blemains insurance only pay the loan.

Basically an insurance policy is there to (indemnify) put you back in a position as if nothing had ever happened, blamains insurance only pays them so if you house burns down blemain get paid ,your still left with a burned out house. Are you indemnified ?

　

　

So is the above insurance fit for purpose.

　

　

2 blemain have a term in the agreement that requires you to name them on your insurance policy, if you don’t then you are in breach of the terms of the agreement,

　

If you breach an agreement then a company is allowed to claim reasonable costs in dealing with any breach, the costs that blemain add to your account and say they are for insurance are the same as any other cost that they add (phone ,letter charges) they are not fair or proportionate get them to prove how much it costs them.

　

There are plenty of terms in the agreement that are very one sided and it is a shame that the regulatory bodies that are there to protect the consumers are failing in their duties.

 

wp3

[Gallahad]

Hi WP, I am very aware and agree with all you say but am powerless to do anything about it while the chocolate teapots misnamed as "The Authorities" remain ball less.

G

[dx100uk]

you now have

 

and are in the BH forum!!

 

i'll try and move over as many BF threads as i can find later

 

dx

[determindator]

Great news dx for the Blemain fighters!.

[welshperson3]

Thanks DX im sure a Blemain forum will have lasting implications for those that have issues with Blemain now, and also evolve into a good source of information for future Blemain victims.

 

wp3

[suffering]

ok i give up, what is this BH forum and how do you access it

[dx100uk]

you are already there

scroll right up the top

 

hit theblue blemain finance in between the two >> like > blemain finance >

 

threads being moved from all over the forum now by me to this forum

 

dx

[suffering]

I have a totally unafordable loan from Lanc Mortgage (Blemain) so i will be showing the judge i cannot make payments and i was never in a position to meet such high payments income was nowhere near the repayments the only payments made are the ones incorporated into the loan further more a house sale released payment to LMC for £192,000 at a stage when i was £68,000 in arears yet when i asked was i up to date or infront i was informed they had kept me in arears this case is as big as bentley v blemain for unfair relationship i really need to win this. Anyone know how much i would need to be earning to meet repayments of £6475.00 a month?

unafordable loan , irresponsable lending on a massive scale i was set up to fail by Marc Goldberg Director of LMC. I have proof of deceitfull behaviour, i have proof of intimidation, i have proof the loan was unaffordable

[searching70]

Interest Rates and Circumstances When Loan Made

 

In Nine Regions (t/a Logbook Loans) v Sadeer [2008] Unreported, 14 November 2008, the court held that there was no unfair relationship. The high interest rate was not unfair as it was justified by the high risk to the creditor, being a last resort loan. In contrast, in Mrs Sharon Morrison & Mr Keith Robinson v Betterpace Ltd (t/a Log Book Loans) [2009] Unreported, 1 September 2009, the court held that there was an unfair relationship.

 

The borrower was not informed that the interest rate on the second loan would be significantly higher than the interest rate on the first loan. Additionally, the failure by the lender to update its records meant that the borrower was charged for multiple default letters each month.

[welshperson3]

Hi suffering

 

From your post above you say

 

“I have a totally unafordable loan from Lanc Mortgage (Blemain) so i will be showing the judge i cannot make payments and i was never in a position to meet such high payments income was nowhere near the repayments"

 

 

Can you tell me if this was a first charge mortgage?

 

Is this a bridging loan?

 

Was this a commercial loan, used for business?

 

 

I have read lots of your posts (from all sites) and you seam to know what your doing, but a good read if your loan is a first charge is MCOBS, but there are different rules for different types of loan agreement, it is important you know what rules cover your agreement.

 

 

 

 

 

MCOB 11.3 Responsible lending, and responsible financing of home purchase plans

 

MCOB 2 – 7 contain the broad scheme of regulation extending over the whole range of mortgage selling, and impose detailed requirements as to the form and content of communication and financial promotion; the conduct of advising and selling; disclosure of information; the terms of offer documents including the requirement to give illustrations; having regard to the interests of customers and the duty to treat them fairly; and the duty to keep records (with supplemental provisions in MCOB Sched 1) etc.

 

 

 

MCOB 11 contains some important duties that extend the requirement in MCOB 6 to treat customers fairly.

 

 

(1) A firm must be able to show that before deciding to enter into1, or making a further advance on,1 a regulated mortgage contract, or home purchase plan,1 account was taken of the customer's ability to repay.

 

 

wp3

[welshperson3]

I started this thread with the hope that it will turn into a good source of information about what to do if Blemain start court proceedings for possession of your home.

 

　

There is no quick and easy answered to this problem as there are different types of loan agreement and different rules apply to these agreements, a few of the more conman ones listed below.

 

　

CCA regulated

Unregulated

Bridging loan

First charge mortgage

 

　

　

Now the first thing I would like to discuses relates to a CCA regulated agreement.

 

　

One thing that is required BEFORE starting court proceedings is a default notice DN, the DN Blemain send out is non compliant with the rules, what this means is that they have no right to start court proceedings.

 

　

A faulty DN doesn’t mean you get the loan written off, it doesn’t mean Blemain cant start all over again with a new DN.

 

　

What a faulty DN means for you is that it will give you some time to sort your self out, YOU CAN ALSO CLAIM YOUR COSTS, BLEMAIN WONT BE ABLE TO ADD THEIR COSTS TO YOUR LOAN.

 

　

If Blemain have got a suspended possession order on your home and they have got it after issuing a DN like the one I post up for all to see, if you really want to you can go back to court and get it removed. ( I GOT MINE REMOVED)

 

　

Now if blemain are going for possession of your home and you already got a suspended possession order, then you need to bring the faulty DN to the attention of the judge (they cant have possession without following the rules and one of the rules are that they send out a CCA compliant DN)

 

　

This bit is were it gets messy

What if Blemain went to court and got possession, take someone’s home, all without the right documents. Legally they were never entitled to go to court and claim possession.

This would have defiantly happened because Blemain sent out thousands of faulty DN (they were a standard computer generated document)

 

　

If Blemain repossessed your home after issuing you with a DN like the one I post up then I strongly recommend you research what I am saying, you maybe entitled to a lot of money back. (CCA regulated loans only)

 

　

Why were the default notices faulty?

 

　

The consumer credit act sets the rules for CCA regulated agreements, and one of the rules say they must issue you with a default notice, and another rule says exactly what is required to be written in the DN,

 

Blemain have never been bothered with things like rules, so they decided to leave out parts of the DN which would have helped you,

 

A particular paragraph that must be included in a DN is the following.

 

　

　

　

　

The following is a prescribed paragraph and is missing fron Blemains DN

 

A statement in the following form—

"IF YOU ARE NOT SURE WHAT TO DO, YOU SHOULD GET HELP AS SOON AS POSSIBLE. FOR EXAMPLE

YOU SHOULD CONTACT A SOLICITOR, YOUR LOCAL TRADING STANDARDS DEPARTMENT OR YOUR

NEAREST CITIZENS' ADVICE BUREAU".

　

　

The construction of the Default Notice is such that it IS NOT lawfully compliant and that it defeated the intents and purpose of the act and as a matter of law is sufficient to allow the court to strike out the claimants claim

 

　

I will scan one of the faulty DN and put it on here tomorrow. But look at your DN AND SEE IF THE ABOVE PARAGRAPH IS MISSING

 

Wp3

[suffering]

Thanks for showing a interest wp3. we had a mortgage so originally applied for a secomd charge 50k loan via a broker predominantly to finish our family home the last of 3 houses to be built the other two were 99% finished and we had moved into one of them prior to the loan. i was told the loan would be very quick and straight forward as we had potentially around £500 equity. (as all three houses were on one title deed ) we were lead along for 6 weeks with a lot of stress and confusion wrong loan agreements. Constantly being told funds would be released. Then out of the blue two LMC directors aranged a home / site visit asking a lot of questions exposing our desperate vulnerable situation i had'nt a clue about professional loans. again the loan was agreed i was told i was ok to arrange tradesmen. a new 50k loan was redrawn up and we signed it at the sol's the next day

Three days later i received a call from LMC director saying he had changed his mind he then took over from the broker completly changing the course of action, withdrawing the loan offer, changed the loan to a first charge, taking out my high street mortgage provider, substantially increasing the loan, with 4 mths i was persueded to agree only to find the loan would release £30k So yet another increased loan agreemnt was drawn up (the 8th) by the time i signed my back was completely against the wall. this is not the full story but it gives a insite

 

The loan was classed as a business loan, unregulated, term was 12mths

[welshperson3]

Hi searching 70

 

 

In the post above the augment is basically about how high the interest rate was, and I don’t think any argument about how high Blamains interest rate is will get anyone anywhere.

 

 

If you look at Blemains loan agreements they are usually variable interest rates.

 

Now what I have found an issue with is the word variable, Blemains idea of variable interest, as stated in their agreements, says that the interest can go up above what your initial interest rate was, but it can never fall below what your interest rate was when you signed up to the agreement.

 

 

This is about an unfair term as I think anyone can imagine, this term can only benefit them,

 

 

Think of it like this,

 

 

Blemain borrow money from the bank at a variable interest rate to lend to you. The bank drops the interest rate blemain are borrowing money at, blemain don’t pass on the interest rate cut and effectively make a lot more profit.

 

 

 

If the bank that Blemain borrows money from to lend to you puts up the interest rate, then blemain puts up the interest rate you pay effectively keeping their profit margins.

 

 

 

The unfair terms in consumer contracts regulations were written for exactly these type of one sided terms in agreements.

 

Wp3

Edited January 28, 2013 by welshperson3

[welshperson3]

I know you say it was a commercial loan, and they say it was a commercial loan. But what I would be checking is the rules.

What makes this a commercial loan if as you say they paid off your first charge mortgage so effectively this is a first charge and at least %40 of the money was for your home then you may find that it is covered by MCOB rules.

wp3

[suffering]

This is somthing i have been trying to get th FOS to look into i don't agree that this should of been a un-regulated or a business loan but LMC made it fit into that category. The loan was because we extended our property adding a bedroom etc so it was suitable for us to live in, thus sending us over budget

I must admit i know very little about MCOB it has only recently come to my attention. At the time of the loan application we were using the facilities of two of the properties with our furniture spread between the two, hence using / occupying 70% (one house is larger) LMC have for some reason always tried to deny we were living there, even though they witnessed it, and the agreement has it on, as our address.The loan was predominantly for our own house the other two were decorated and carpeted and 99% finished

As i now understand it

A 'Regulated Mortgage Contract' is a loan on the security of a first legal mortgage on land in the United Kingdom of which at least 40% is used as or in connection with a dwelling by the borrower. This loan can be to an individual or a trustee. But the FOS stated that as we intended to sell two properties it was a business loan missing the point I have put this back to them and await their response.

Edited January 29, 2013 by suffering
additional information

[welshperson3]

Hi suffering

　

Sorry this is so long but I think it will help you,

If you can show that your loan is in fact a fully regulated first charge mortgage, them you can use MCOB rules, and then you will have a much bigger hammer to crack this nut,

　

http://fsahandbook.info/FSA/html/handbook/PERG/4/4

　

Top of Form 1

The definition of "regulated mortgage contract"

PERG 4.4.1 06/04/2007

Article 61(3)(a) of the Regulated Activities Order defines a regulated mortgage contract as a contract which, at the time it is entered into, satisfies the following conditions:

(1) the contract is one where a lender provides credit to an individual or trustees (the 'borrower');

(2) the contract provides for the obligation of the borrower to repay to be secured by a first legal mortgage on land (other than timeshare accommodation) in the United Kingdom; and

(3) at least 40% of that land is used, or is intended to be used, as or in connection with a dwelling by the borrower (or, where trustees are the borrower, by an individual who is a beneficiary of the trust) or by a related person.

 

PERG 4.4.2 G to PERG 4.4.9 G set out the FSA's understanding of some key concepts contained in article 61(3)(a). It should be noted that, where a contract meets the necessary requirements for both a regulated mortgage contract and a home purchase plan, it will be treated as a home purchase plan only and will not be a regulated mortgage contract. Guidance on the meaning of a home purchase plan is in PERG 14.4 (Guidance on home reversion and home purchase activities)1.

Provision of credit

PERG 4.4.1A 01/07/2005

(1) Article 61(3)© of the Regulated Activities Order states that credit includes a cash loan and any other form of financial accommodation. Although 'financial accommodation' has a potentially wide meaning, its scope is limited by the terms used in the definition of a regulated mortgage contract set out in PERG 4.4.1 G. Whatever form the financial accommodation may take, article 61(3)(a) envisages that it must involve an obligation to repay on the part of the individual who receives it.

(2) In the FSA's view, an obligation to repay implies the existence, or the potential for the existence, of a debt owed by the individual to whom the financial accommodation is provided (the 'borrower') to the person who provides it (the 'lender'). Consequently, for any facility under which any form of financial accommodation is being provided, the test is whether it allows for the possibility that the person providing the financial accommodation may be placed in a position where he becomes a creditor of the individual to whom he is providing it. An example of this would be the issue of a guarantee by a bank to a third party for an individual customer (such as a rent guarantee or a performance bond) where the guarantee is secured on a first legal charge over the customer's residential property. In the FSA's view, this would amount to a regulated mortgage contract as the customer would owe a debt to the bank in the event that the bank had to pay the third party under the guarantee.

Which borrowers?

PERG 4.4.2 01/07/2005

The condition set out in PERG 4.4.1 G (1) limits the range of borrowers to whom the protections of the mortgage regulation regime apply to individuals and trustees. If a company (which is not acting as a trustee) borrows money for the purpose of funding the company's business, and the loan is secured by a mortgage over the company's property, the mortgage contract is not a regulated mortgage contract. So a lender will not carry on a regulated activity by entering into that contract, nor will the lender carry on a regulated activity if it advises on, arranges or administers that contract. However, if the lender makes a loan for business purposes to an individual sole trader, or (in England and Wales) a partnership, and the loan is secured on the borrower's house or houses, the contract will be a regulated mortgage contract.

Date the contract is entered into

PERG 4.4.3 01/07/2005

In order to meet the definition of a regulated mortgage contract, a mortgage contract must meet the conditions set out in PERG 4.4.1 G (1) to PERG 4.4.1 G (3) at the time it was entered into. The effect is that contracts which meet those conditions at that time remain regulated mortgage contracts throughout their remaining term, even if there are periods of time when some or all of the conditions are not satisfied. Conversely, contracts that do not start out as regulated mortgage contracts cannot subsequently become so, even if they meet all the conditions set out in PERG 4.4.1 G (1) to PERG 4.4.1 G (3). A person that only administers mortgage contracts which did not meet those conditions at the time they were entered into will not, therefore, need permission to administer regulated mortgage contacts.

PERG 4.4.4 01/07/2005

There may, however, be instances where an existing contract, which was not a regulated mortgage contract at the time it was entered into, is replaced as a result of a variation (whether the variation is initiated by the customer or by the lender), and the new contract qualifies as a regulated mortgage contract. A person may therefore need to consider this possibility (which could affect contracts initially entered into before 31 October 2004 as well as subsequent loans) when deciding whether he needs permission to carry on any of the regulated mortgage activities.

Land in the United Kingdom

PERG 4.4.5 01/07/2005

The condition set out in PERG 4.4.1 G (2) means that a regulated mortgage contract must be secured on land in the United Kingdom. Contracts which involve taking security over moveable property therefore cannot be regulated mortgage contracts. So a contract secured on a caravan will not be a regulated mortgage contract, unless the contract also involves a mortgage over the land on which the caravan stands.

Occupancy requirement

PERG 4.4.6 01/07/2005

The condition set out in PERG 4.4.1 G (3) means that loans secured on property which is entirely used for business purposes (such as an office block) cannot fall within the definition. However, loans secured on 'mixed use' property could be covered, provided that the borrower (or trust beneficiary, where the borrowers are trustees) or a 'related person' uses at least 40% of the total of the land as or in connection with a dwelling. Loans secured on a six-floor property, half of which was occupied by the borrower and half let out for business purposes would therefore satisfy the definition. (Article 61(4)(b) makes it clear that 'land', in the context of a multi-storey building, means the aggregate of the floor area of each of the storeys.)

PERG 4.4.7 01/07/2005

The expression 'as or in connection with a dwelling' set out in PERG 4.4.1 G (3) means that loans to buy a small house with a large garden would in general be covered. However, if at the time of entering into the contract the intention was for the garden to be used for some other purpose - for example, if it was intended that a third party were to have use of the garden - the contract would not constitute a regulated mortgage contract. Furthermore, the FSA would not regard a loan to purchase farmland and a farmhouse as constituting a regulated mortgage contract (where the farmhouse and garden amount to less than 40% of the land area), since it does not appear that the land could properly be said to be used 'in connection with' the farmhouse. The presence of the farmhouse is unconnected with the use to which the farmland is put (in contrast to a residential property's garden, which would have no existence independent of the property).

PERG 4.4.8 01/07/2005

The requirement that at least 40% of the land area be used as or in connection with a dwelling means that 'buy to let' loans secured on the property to be let will usually be excluded. However, such loans will not be excluded if:

(1) the lessee is a 'related person' to the borrower. This will be the case even if the borrower subsequently takes possession of the property, as the conditions set out in PERG 4.4.1 G (1) to PERG 4.4.1 G (3) were not satisfied at the outset of the contract (see PERG 4.4.3 G); or

(2) at the time the contract is entered into, the borrower has a real intention to use the land as, or in connection with, a dwelling (for example a member of the British Forces Posted Overseas who buys a property in the United Kingdom intending to live there on his return but which he lets out in the meantime).

PERG 4.4.9 05/12/2005

'Related person' is defined in article 61(4)© of the Regulated Activities Order as meaning the borrower's spouse, civil partner, 2parents, grandparents, siblings, children and grandchildren. An unmarried partner of the borrower whose relationship with the borrower has the characteristics of the relationship between a husband and wife is also included; this can include a person of the same sex as the borrower. Stepchildren, however, would seem to be excluded.

Purpose of the loan is irrelevant

PERG 4.4.10 01/07/2005

The definition of regulated mortgage contract contains no reference to the purpose for which the loan is being made. So, in addition to loans made to individuals to purchase residential property, the definition is wide enough to cover other loans secured on land, such as loans to consolidate debts, or to enable the borrower to purchase other goods and services.

Type of lending

PERG 4.4.11 01/04/2012

The definition of regulated mortgage contract also covers a variety of types of product. Apart from the normal mortgage loan for the purchase of property, the definition also includes other types of secured loan, such as secured overdraft facility, a secured bridging loan,33 a secured credit card facility4 and 4regulated lifetime mortgage contracts4 under which the borrower (usually an older person) takes out a loan where repayment of the capital (and in some cases the interest) is not required until the property is sold, usually on the death of the borrower.

PERG 4.4.12 01/04/2012

A number of products, however, are excluded from the definition, such as:

(1) loans secured by a second or subsequent charge (as the lender does not have a first charge); and4

(2) loans secured on commercial premises (as the borrower will not be using the land as or in connection with a dwelling)4.4

(3) 4[deleted]4

Regulated mortgage contracts and contract variations

PERG 4.4.13 01/07/2005

The effect of the Regulated Activities Order is that mortgage contracts which are varied can fall into one of the following categories:

(1) a contract that was entered into before 31 October 2004, and that is subsequently varied on or after that date so that is satisfies the conditions set out in PERG 4.4.1 G (1) to PERG 4.4.1 G (3), will not be a regulated mortgage contract (because it was not a regulated mortgage contract at the time it was entered into);

(2) a contract that was originally entered into before 31 October 2004, but is subsequently changed on or after that date such that a new contract is entered into, will be a regulated mortgage contract (provided, of course, that it meets the definition in the Regulated Activities Order); and

(3) a regulated mortgage contract that was originally entered into on or after 31 October 2004, and which is subsequently varied by, for example, making a further advance, will remain a regulated mortgage contract.

PERG 4.4.14 01/07/2005

It is possible for more than one mortgage contract to be secured by the same (first) charge. The first contract might be entered into before 31 October 2004 (and therefore not be a regulated mortgage contract) and a second contract entered into on or after 31 October 2004 (and be a regulated mortgage contract).