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<p>UK borrowers taking out a business loan secured on their home have a number of
protections available to them.</p><p> </p><p> </p><p> </p><p>The Financial Conduct
Authority (FCA) has responsibility for the regulation of mortgages secured by a first
charge against a borrower’s home, regardless of the purpose of that loan. These regulations
include consumer protections to ensure that repossession is only used as a last resort.</p><p>
</p><p> </p><p> </p><p>Where borrowers are taking out a second charge loan of £25,000
or less for a business purpose they are also protected under the FCA’s regulatory
regime for consumer credit. The Government is currently consulting on the transfer
of the regulation of second charge mortgages to the same regime as first charge mortgages.</p><p>
</p><p> </p><p> </p><p>In addition, all borrowers are provided protection in the Courts,
through the use of the Mortgage Pre-Action Protocol, which requires a Court to ensure
that the lender has taken all reasonable steps to resolve the borrower’s payment difficulties
before granting a possession order.</p><p> </p>
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