This hub aims to cover the Buy to Let (BTL) market, from lenders to understanding landlords and tenants needs. You will find all the information you need to help your BTL customers. This market continues to change, with new rules and regulations as well as innovation in products from lenders.You can view all our BTL lenders and criteria on our BTL Matrix.
There are two different classifications for Buy to Let mortgages:
Some BTL mortgages are known as CBTL. This gives the FCA powers to supervise firms carrying out CBTL activity. Firms need to obtain the appropriate CBTL permissions. CBTL will apply when:
Some BTL mortgages can be non-regulated and are known as IPL or BBTL.
The lender will require a signed declaration from the borrower to confirm they’re acting wholly for business purposes. Similarly, anyone associated with the transaction must have no reason to think this is incorrect.
Whilst IPL/BBTL loans are not regulated by the FCA, lenders will treat them the same as CBTL and expect you to apply the same scrutiny prior to submitting applications to them.
You can see each individual lenders criteria on our BTL matrix here.
A property is a HMO if both of the following apply:
A large HMO if all of the following apply:
All large HMOs need a license from the local council. Some small HMOs may need a license as well, depending on the council.
A household is either a single person or members of the same family who live together.
A family includes people who are: married or living together - including people in same-sex relationships
relatives or half-relatives, eg grandparents, aunts, uncles, siblings step-parents and step-children
Many changes have happened and are due to happen in the BTL Market, so we have created a new handy page where you will find information on regulatory change from the PRA (Prudential Regulation Authority) and the FCA (Financial Conduct Authority).
It includes information on:
Lenders have also been busy implementing changes and all the details have been updated on our Buy to Let Matrix, which can be found here.
This website is designed to give professional financial advisers information and tools that they can use to help control and develop their business and should not be relied upon by private investors or any other persons.