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Is it possible if I own outright my flat to sell it to the buyer where I provide the financing for the buyer to buy it off me? The flat is difficult to otherwise get a mortgage on.

I presume this will require regulation by the Financial Conduct Authority (FCA) but is it even possible to do this once without a company that does this as a general product?

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    Can't say for UK (there is an answer that does). In the US I think this is fairly common, and I did it myself many years ago (5 years of payments based on 30-year amortization, refinanced (as planned) at 5 years with a bank). I can't remember all the details, but I think it was a pretty standard thing and the original owner didn't have to pretend to be like a regular mortgage lender/bank with associated regulations. They trusted me, I trusted them, simple contract $ % etc. Here is an article explaining it Sep 20, 2022 at 18:34

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Jurisdiction:

The relevant legislation here is the Financial Services and Markets Act 2000 together with subordinate legislation passed under that Act.

Financial Services and Markets Act 2000:

Section 19:

(1) No person may carry on a regulated activity in the United Kingdom, or purport to do so, unless he is - (a) an authorised person; or (b) an exempt person.

Section 22:

(1) An activity is a regulated activity for the purposes of this Act if it is an activity of a specified kind which is carried on by way of business and - (a) relates to an investment of a specified kind; or (b) in the case of an activity of a kind which is also specified for the purposes of this paragraph, is carried on in relation to property of any kind.

(5) “Specified” means specified in an order made by the Treasury.

Financial Services and Markets Act 2000 (Regulated Activities) Order 2001:

Article 4:

The following provisions of this Part specify kinds of activity for the purposes of section 22(1) of the Act (and accordingly any activity of one of those kinds, which is carried on by way of business, and relates to an investment of a kind specified by any provision of Part III and applicable to that activity, is a regulated activity for the purposes of the Act.

Article 61:

(1) Entering into a regulated mortgage contract as lender is a specified kind of activity.

(3) In this Chapter — (a) subject to paragraph (5), 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 mortgage on land; (iii) at least 40% of that land is used, or is intended to be used — (aa) in the case of credit provided to an individual, as or in connection with a dwelling; or (bb) in the case of credit provided to a trustee which is not an individual, as or in connection with a dwelling by an individual who is a beneficiary of the trust, or by a related person; but such a contract is not a regulated mortgage contract if it falls within article 61A(1) or (2).

Article 73:

The following kinds of investment are specified for the purposes of section 22 of the Act.

Article 88:

Rights under a regulated mortgage contract.

So, if you are providing the mortgage to someone who will live at the property and are doing so by way of business (likely unless this is an arrangement with a friend or relative) then you will need to be FCA authorised unless there is an applicable exemption. See Chapter XV of Part II of the Regulated Activities Order and Section 38 FSMA and the Financial Services and Markets Act 2000 (Exemption) Order 2001 for examples of exemptions.

A full analysis of financial services regulation would be too dense to fit into a Stack Exchange post and you should seek specialised legal advice before considering entering into any kind of mortgage as a lender.

"is it even possible to do this once without a company that does this as a general product?"

It doesn't matter whether you are a company or whether you do it once or regularly. However, due to the costs and practicalities of obtaining FCA authorisation (where applicable) and ensuring that contracts and land registry charges are correctly drawn up (given the high stakes), you are unlikely to see many one-off or "amateur" mortgages in the real world.

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