BUY-TO-LET CUSTOMERS EXPLAINED
Consumer buy-to-let customer
Consumer Buy to Let aims to provide a distinction between “accidental” landlords who may need consumer protection and Professional landlords who operate their property portfolios as a business. Accidental landlords will include the likes of those who have inherited a property that is let out and those who need to move for work say, and choose (for whatever reason) to keep hold of their original home and turn it into a buy to let. A consumer buy to let transaction will be treated in a similar way to a residential mortgage transaction and these types of buy to let are regulated.
Consumer buy-to-let mortgages offer consumer protections to people letting out their homes, but not as a business or as an investment. Where you take out a consumer buy-to-let mortgage, if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service (FOS). The FOS settles disputes between financial services business and their customers Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk.
Business buy-to-let customer (BBTL)
Professional landlords who operate their property portfolios as a business i.e. (business buy to let (BBTL), as a commercial (not consumer) transaction these types of buy to let mortgages are not regulated by the Financial Conduct Authority.
Where you take out a buy-to-let mortgage, if you cannot settle your complaint with us, you will not be entitled to refer it to the Financial Ombudsman Service.