Professional or consumer buy to let mortgages?

One of the most confusing things about buy to let mortgages is the difference between consumer and professional borrowers. At Capital Alliance Financial Services Ltd we would like to explain the differences between the two, providing important details and tips. We are one of the leading resources for consumer buy to let mortgages Nottingham has so you can rely on the information we offer.

Professional buy to let mortgages are for people who choose to purchase a portfolio of properties as a business. They are slightly different because these investors tend to already have a mortgage, typically for their own home. They also generally need less supervision.

Consumer buy to let mortgages are designed for individuals who become landlords by accident. For example they may want to obtain a mortgage for a home that they have inherited, previously occupied but have moved out of, or are unable to sell. They have to meet similar affordability tests to when you apply for a residential mortgage.

New regulation for consumer buy to let mortgages came into force in March 2016. The UK government made the move to supervise them for the first time, working to improve standards. As part of this they looked to offer more protection for consumers who would become owners of buy to let properties by accident.

The move means that anyone who needs to take out a buy to let mortgage that isn’t specifically for business purposes needs to choose a regulated product. It also means that lenders need to be more careful when selling them. Some may need to get additional permission to provide advice on consumer buy to let mortgages and to sell them.

At Capital Alliance Financial Services Ltd we can help you to find the correct mortgage to suit your needs. We are proud to offer full support and guidance throughout the process, explaining everything from the legal requirements to your obligations as a landlord. When it comes to consumer buy to let mortgages Nottingham based clients have no better team to call on than us.

Get in touch today to discuss your needs with our team.