unregulated mortgage?

j1mgg

I have been told that i have a unregulated mortgage.

What does this mean and is it okay or should this have been changed years ago.

Thanks and anyone know which banks do shared ownership mortgages as i only know of abbey(who i am with) that do them

Thanks in advance

koexelek

Most buy to let mortgages are unregulated.
Nothing to worry about it.

Nationwide/ Leeds/ Halifax also Ok for shared ownership

jill2002

Your mortgage was taken out years ago when all mortgages were unregulated. It will only become 'regulated' once you make certain changes like an additional loan on your mortgage.

All new loans (for your residential purposes) are 'regulated' by the Financial Services Authority which means that if something goes wrong, you have some comeback. It's not a problem that yours is unregulated - you won't notice any difference as to how it works or anything. And if it's working ok for you then there isn't a problem.

Also a regulated (new) mortgage has to be explained fully to you when you take it out and be given full information about that mortgage in the form of a 'Key Facts document' which explains things like all the costs associated with that mortgage. I know that Abbey (and most major banks/building societies) have been providing 'up front' information by way of a quote for many years, so you probably received similar information to the new document when you took out your mortgage. The regulations were brought out to ensure 'sharks' had to disclose the true cost of the mortgage/loan. It also means that all companies provide the same information - so that you can compare them.

If you take an additional loan on your mortgage you cannot have a new regulated loan with an unregulated loan, therefore, your whole mortgage including the new loan will become regulated.

Abbey do shared ownership mortgages, so you can 'port' your existing deal over to your new mortgage.

Hope this helps

j1mgg

Thanks for the replies. Just wasnt sure if it was a bad thing. Will be getting it changed soon as looking to buy more of my property.

Thanks again