The Business Purpose Exemption
Our self-employed mortgages use the Business Purpose Exemption under MCOB. Here are three things to remember in order for a loan to qualify for this exemption:
- The amount borrowed must exceed £25,000 and the agreement must be for legitimate business investment.
- The business could be a sole trader, partnership or limited company
- The borrower should be an existing shareholder of the business or be using the proceeds of the loan to acquire an interest in the business.