Lancashire Mortgage Corporation alerts brokers to regulatory relaxation

Following the removal of the £25,000 financial limit for CCA regulated loans in April this year Lancashire Mortgage Corporation has advised brokers to be aware of the Legislative Reform Order which comes into force on 31st October. The changing legislation will alter the regulatory status of certain loans secured against commercial properties.

Gary Bailey, Director at Lancashire Mortgage Corporation explains:

"The Legislative Reform Order will apply to all loans and mortgages against commercial properties including those for less than £25,001. These loans would previously have been regulated, but from 31st October brokers and lenders will be able to treat them as unregulated. There will no longer be any need to apply for a business exemption and consideration periods will not apply."

Bailey continues:

"The net result is that all loans against commercial properties can now be treated as unregulated regardless of the charge type or the sum being borrowed. This Legislative Reform Order will also mean that all loans for less than £25,001, as well as those for more, against buy to lets, commercial or semi-commercial properties with less than 40% family occupancy will become unregulated."