What does Regulated Mortgage Contract mean?
In order to know what a regulated mortgage contract is, one has to fulfill the following conditions: • You are an individual/trustee eligible to contract a mortgage/loan; within UK only • First legal charge is being in force (which simply means that if you default on your loan, the regulated mortgage contract lender is first in line of repossession) • The minimum area of the property which must be occupied is 40%.For example an Equity Release loan if meeting the above enumerated conditions is such a regulated mortgage contract. This option supposes that you take out a loan on the remaining equity in your home, which will be repaid upon the decease of the rightful owner. For example, the equity left in your home is £90,000, and your home is worth £210,000. Upon your death, the house is sold, the lender gets back his amount £90,000 + interests and other charges, and the remainder of the amount goes to the surviving family members (children, grandchildren). Furthermore, a secured credit c
