Consumer Buy To Let
A ‘Consumer Buy To Let’ is a property which has been habited by the owner or their family member.
This distinction came about from 21st March 2016 as a result of government’s implementation of the Mortgage Credit Directive (European Union legislation).
Many lenders have their own interpretation of what is a ‘Consumer Buy To Let’. Speak to one of our advisers to ensure which mortgage products might be available when considering mortgaging a ‘Consumer Buy To Let’ property.
The actual definition of a ‘Consumer Buy To Let’ by the Directive is a:
“Buy To Let mortgage contract which is not entered into by the borrower wholly or predominantly for the purpose of business carried on, or intended to be carried on, by the borrow.”
Basically, it establishes what’s commonly termed as the ‘accidental landlord’ and identifies someone who may need consumer protection. Effectively, this is regulating this business and making the same regulator responsible as residential mortgages.
This may include someone who might have:
- Inherited the property from a family member
- Let out their home and moved out