Mortgage Types

There are four main types of mortgage that Crickett Finance deals with, residential mortgages, buy-to-let mortgages, commercial mortgages and corporate mortgages. The different types of mortgage fall into two main categories, regulated mortgages and unregulated mortgages.

Residential mortgages are regulated by the FSA, and have been since October 31st 2004. What this means is that any mortgage over £25,000, which is a first legal charge on a property, which is at least 40% residential will be a regulated mortgage contract.

Buy-to-let, commercial and corporate mortgages are unregulated at the moment and with the exception of buy-to-let mortgages will probably not become regulated. This is because these types of mortgages are taken out by businesses as opposed to consumers. The aim of regulating the mortgage industry was consumer protection, and therefore does not extend to businesses.

Buy-to-let mortgages may become regulated in the future as for the most part these mortgages are taken out on residential property, by what are in essence consumers and not businesses. As buy-to-let mortgages are used to buy investment property, the FSA may seek to protect the interests of non-savvy property investors, by regulating the market.

Related pages:
Buy To Let
Commercial
Corporate
Residential

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