In article 61 of the principal Order -

(a) in paragraph (2), after "entered into" insert "by way of business";

(b) for paragraph (3)(a) substitute -

"(a) a contract is a "regulated mortgage contract" if, at the time it is entered into, the following conditions are met -

(i) the contract is one under which a person ("the lender") provides credit to an individual or to trustees ("the borrower");

(ii) the contract provides for the obligation of the borrower to repay to be secured by a first legal mortgage on land (other than timeshare accommodation) in the United Kingdom;

(iii) at least 40% of that land is used, or is intended to be used, as or in connection with a dwelling by the borrower or (in the case of credit provided to trustees) by an individual who is a beneficiary of the trust, or by a related person;";

(c) in paragraph (4), for "paragraph (3)(a)(ii)" substitute "paragraph 3(a)".