I bought a buy-to-let flat last year and want to buy another one later this year. I have read that some buy-to-let mortgages will be regulated under the Mortgage Credit Directive from 21 March. What does this mean for me as a borrower? Will the process be different from when I took out my mortgage last year?
For you as a borrower I doubt you’ll be affected as you are already a landlord. Regulation will apply to mortgage contracts that are taken out by borrowers who become landlords by accident and who are not wholly or predominantly operating for business purposes.
For example, those who inherit property then let it out or, those who move home and instead of selling their previous home, rent it out.
The regulation will protect them as consumers rather than businesses. The process for borrowers won’t be very different from how it is now, except there will be more paperwork, akin to that of a normal residential mortgage.