What regulation covers my mortgage?

A reader from Birmingham want to know what legislation covers his mortgage.

Tony Davis, myfinances.co.uk mortgage expert from Mortgage Meadow, takes him through the problem and what it means to his finances.

Richard from Birmingham asks:

I took out a £15,000 remortgage in 2006.

Should this remortgage be regulated under the Consumer Credit Act 1974?

Tony replies:

The answer depends on the type of mortgage you have taken out.

The Consumer Credit Act 1974 (which was reformed in a bill in 2006) now regulates all new loans of any amount and existing loans up to £25,000 - unless it is a First Charge mortgage regulated by the Financial Services Act, or, some second charge mortgages, depending upon the nature of the agreement and the identity of the lender.

As such, it will depend upon who your mortgage is with, if it is a mortgage company the likelihood is that it will be regulated by the FSA rather than the CCA.

If you have a question for Tony, go to the myfinances.co.uk Ask the Mortgage Expert section.

Or for more information or mortgage advice go to Mortgage Meadow.

Mortgage Meadow is an independent mortgage broker and is authorised and regulated by the Financial Services Authority