Understanding consumer buy-to-let mortgage regulation.
Consumer buy-to-let mortgages fall in between unregulated buy-to-let and fully regulated mortgages.
Changes were introduced to provide increased protection for people who let their property as a result of circumstance, rather than part of a business plan.
Working out what category your buy-to-let application fits into.
- Will you or a relative occupy any part of the property?
If the answer is yes then your application will fall into the regulated mortgage category. - What is the purpose of the property purchase?
If when purchasing property your intention is not to profit from rent or capital growth, or if you have become an accidental landlord, your application will fall into the regulated mortgage category. - Do you currently own any other buy-to-let properties?
If you already own buy-to-let properties you are considered as a professional and are therefore not a consumer, and so your application will fall into the unregulated mortgage category. - Is it a ‘let-to-buy’ transaction?
If you’re remortgaging your current home with the intention of moving to a new home and letting out your current property, your application will fall into the regulated mortgage category.
If you want a buy-to-let mortgage and advice as to which category you fall into contact us a Deal Direct.
Whilst we can advise you as to a suitable mortgage, we are not regulated by the FCA to offer financial advice. We therefore cannot help you work out if property is the right investment for your needs. For that type of advice, you will need to contact an independent financial adviser.
Please note:
Buy to let mortgage applications from:
- applicants whose intention is to benefit from house price growth
- applicants whose intention is to benefit from rental income
will be treated as normal buy to let and not as a consumer buy to let. In addition, their subsequent remortgage applications will also be treated in the same manner.
Call us today on 0800 048 8828 for a buy to let deal.
