Buy to let lenders who are members of the Council of Mortgage Lenders (CML), have agreed to a new statement of practice, which is intended to “provide clarity about how responsible buy to let lenders operate”.
Initially 31 lenders, accounting for approximately 90% of the buy to let market, have already embraced the statement, with all remaining members who offer buy to let mortgages due to follow suit during the course of 2015.
The statement reflects the “good practices” currently in place, whilst at the same time aims to make sure there is a clear understanding of the requirements of buy to let borrowers on their mortgage. It also documents details concerning the duties of being a landlord and crucially outlines the criterion lenders will exercise in shaping their lending strategies.
The statement has been produced ahead of the “consumer buy to let lending framework” being drafted under Financial Conduct Authority (FCA) guidelines next year and will include any residential buy to let lending not protected by this regulation.
For more information on the statement of practice on buy to let mortgage lending and the lenders who have adopted it, click here.