A statement that acknowledges and clarifies the responsibilities of those borrowing for buy to let purposes, and highlights current good practices that are in place, shows how the buy to let market is expanding.
UK-based lenders who offer a buy to let product range, and who also have a membership with the Council of Mortgage Lenders (CML), are taking on board a new statement that is being implemented to deliver a clear message on how a responsible lender will operate.
Around 31 lenders have, at present, accepted the statement, and it is expected that all members of the CML who provide a buy to let service will incorporate it into their practicing by the close of 2015.
Next year will see buy to let lending, in compliance with the Mortgage Credit Directive, set up a framework with the Financial Conduct Authority (FCA). This statement will remain in place and be applied to all buy to let lending for residential purposes that does not fall under FCA regulation.
Paul Smee, who is the director general of the CML, commented:
“The new buy to let statement of practice reflects what responsible lenders already do and offers a clear explanation of how buy to let lenders operate. We hope it will make a valuable contribution to understanding the buy to let lending environment.”
As a professional who has undertaken their CeMAP training and achieved the relevant pass in the end exam, you will be qualified to provide mortgage advice for buy to let borrowing if you employer offers lending in this field.
