► FSA Regulation
Joint Equity is not FSA regulated itself as we do not carry out any regulated activities
but all our mortgage applications are carried out by fully FSA registered and regulated
mortgage advisors.
Joint Equity is an Authorised Representative of Mortgage Beaters Ltd and passes all
documents and processes through their Compliance process.
Joint Equity considers the FSA requirements as at least a minimum standard and we
have developed our Treating Partners Fairly Policy using TCF principles. Here.
We also require all our Partners, whether Owner or Investor, to have independent
legal advice before they sign the Partner’s Contract and begin the mortgage application
process.
► The Joint Equity Partners Contract
The Partners Contract protects both the prime lender and Joint Equity Partners, reducing
the risk, as it provides the mechanisms and controls in the event of payment defaults.
It also provides the rules for Partners selling their equity shares.
If the Owner-Partner defaults on mortgage payments the lender will look to the Investor-Partner
for payment as they are jointly and severally liable. The Investor-Partner has adequate
assets to cover the payments required and will do so to protect their personal investment.
The Joint Equity Scheme requires a minimum 10% deposit from both Partners, and the
Partners Contract provides the mechanism for the Investor-Partner to acquire the
Owner-Partner’s equity, and value of the deposit, if the Owner-Partner defaults on
either the mortgage or rent payments.
This transfer of equity acts as an incentive, both for the Owner-Partner to stay
with the property, and for the Investor-Partner to accept the whole loan, in the
event of a walk-away by the Owner-Partner.
It is because of the relationship between the Owner-Partner, the Investor-Partner
& Joint Equity ltd, afforded by the Partner’s Contract, that we consider repossession
by Joint Equity Mortgages will be extremely infrequent, reducing administrative
costs to the lender.
The Partners Contract also covers liabilities, actions, and provides protection in
the case of death or bankruptcy of either Partner. Please request our paper “Joint
Equity & Security” for more details.
The Joint Equity Scheme is for first-time buyers, home owners and property investors.
This site is developed and maintained by Joint Equity ltd. ©Joint Equity (2006, 2007 & 2008)
Joint Equity Ltd works with Mortgage Beaters Ltd to provide case studies & Illustrations to prospective Owner-Partners & Investor-Partners. Joint Equity Ltd does not carry out any regulated activities and so is not regulated by the FSA (Financial Services Authority). Joint Equity Ltd are introducer appointed representatives of Mortgage Beaters Ltd, which are authorised and regulated by the Financial Services Authority.
The content of this website is accurate to the best of our knowledge and for information only. We do not provide financial advice.
