Please note:

Leeds Building Society only accepts mortgage applications from intermediaries where they are providing an advised sales service, with the exception of Buy to Let & Holiday Let applications. It is the responsibility of the intermediary to ensure that all applicable law including, without limitation, the Financial Conduct Authority rules on advised mortgage sales are complied with including, without limitation, the provision of adequate explanations.

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Consumer buy-to-let is coming – are you ready?

The Mortgage Credit Directive is coming, and as a result of the Mortgage Credit Directive Order, from March the consumer buy-to-let market will be regulated for the first time. From 21st March 2016, buy-to-let customers will be split into professional and consumer, with so called ‘accidental’ landlords being subject to additional protections on their buy-to-let borrowing. With brokers now expected to differentiate between the two, brokers will face challenges that were previously not an issue in the buy-to-let market.

In recent months, there have been a whole host of initiatives and programmes put in place by lenders to assist intermediaries in preparing for the changes and to ensure the impact of the new regulations will be as minimal as possible. While there is confidence amongst intermediaries that they are ready and well prepared for the upcoming legislation, the real challenge will come when broker’s preparation is finally put into practice in March.

Problems could arise in lenders’ different interpretations of the new rules, which is possible under the legislation. This has already led to some confusion within the market, which could continue when intermediaries come to realise that different lenders are interpreting the rules in a different way. Could this lead to brokers following the path of least resistance; choosing to do business with lenders whose rules are familiar and which they fully understand?

While the majority of lenders and intermediaries appear to be in a good position for when the rules come into effect from next month, it remains to be seen how they both put their preparation into practice from the 21st March.

Are you ready for consumer buy-to-let? To learn more about the changes and how they will affect brokers, go to or call one of the team on 03450 50 5555