Changing 2016 buy to let mortgage rules – why you shouldn't wait to get a deal.

An EU Directive, which is due to come into effect in March next year, will lead to the regulation of some buy to let mortgage deals.

If you are looking for a 2016 buy to let mortgage you are advised to act now and find yourself a deal before these changes come into effect.

From the 21st of March 2016, anyone who applies for a buy to let mortgage for a property that is not part of a business will have to take out a regulated product.

What this means is - if you are an 'accidental landlord' and not operating buy to let as a business, you will be considered in need of consumer protection. For professionals who operate as a business this will not be the case.

This includes anyone looking for a mortgage on a property they have inherited or anyone who wants to rent out a home they previously occupied. In these instances borrowers are considered as a consumer and not a professional landlord.

Up until now all buy to let applicants have been considered as business borrowers and so required less supervision. For those now considered as consumers, far tougher rules and affordability requirements will need to be passed to ensure that they can afford a product.

Before lenders introduce stricter affordability criteria you are advised to act and find yourself a mortgage.

For a review of the buy to let market, impartial advice and a low rate quote, call us at Deal Direct.

We are an independent 'whole of market' broker with access to ALL lenders deals market-wide.

Note:

• Not all mortgages are currently regulated by the FCA.
• Deal Direct is regulated to offer mortgage advice, we cannot advise you as to the suitability of buy to let as an investment.

For mortgage advice and a low rate quote call 0800 048 8828.