Existing fully secured loans
6(1)Subject to subsection (7) of section 6B of the 1986 Act—
(a)any advance which immediately before the commencement of that section was or was treated as a class 1 advance shall be treated as a loan falling within paragraph (a) of subsection (4) of that section;
(b)any advance which immediately before that commencement was or was treated as a class 2 advance shall be treated as a loan falling within that paragraph if the building society concerned determines that, on the assumption mentioned in sub-paragraph (2) below, it would have been a class 1 advance;
(c)any advance not falling within paragraph (b) above which immediately before that commencement was or was treated as a class 2 advance shall be treated as a loan falling within paragraph (b) of that subsection; and
(d)any advance which immediately before that commencement neither was nor was treated as a class 1 or a class 2 advance shall be treated as a loan falling within paragraph (c) of that subsection.
(2)The assumption is that section 11 of the 1986 Act had effect at all material times—
(a)with the substitution for paragraph (b) of subsection (2) of the following paragraph—
“(b)the land is for residential use;”; and
(b)with the omission from subsection (3) of the words “by the borrower or a dependant of his of a prescribed description”.