As a commercial (not consumer) transaction buy to let mortgages are not regulated by the Financial Conduct Authority; however, from 21 March 2016 this will change for any transaction classed as Consumer Buy to Let.
Consumer Buy to Let aims to provide a distinction between “accidental” landlords who may need consumer protection and “professional” landlords who operate their property portfolios as a business.
Accidental landlords will include the likes of those who have inherited a property that is let out and those who need to move for work say, and choose (for whatever reason) to keep hold of their original home and turn it into a buy to let.
In practice, a consumer buy to let transaction will be treated in a similar way to residential mortgage transaction so will require a bit more paperwork. Buy to let lenders which already have a residential mortgage lending operation are likely to offer products to this niche sector of the buy to let mortgage industry.
If you think you fall into this category, we can help. We have a number of mortgage brokers who are qualified to give advice in this regard. Do give us a call to discuss options.
For unregulated buy to let transactions, you may like to know that Mortgages for Business is a member of the NACFB (National Association of Commercial Finance Brokers), a self-regulating body that has a strict code of conduct. This allows you to make a formal complaint if you are unsatisfied with the service you receive.
1st January 0001