What is Consumer Buy-To-Let Mortgage?


Since the introduction of guidance from the mortgage credit directive in 2015 the definition in relation to “what is a Consumer BTL Mortgage?” has been interpreted by a number of lenders in various different ways.


Due to the various lender definitions a customer could be declined a mortgage due to being classed as a Consumer BTL yet be accepted by another lender as a standard BTL.


The customer could therefore be declined access to a buy-to-let mortgage, which may be the most appropriate for their needs, not down to intentional policy restrictions but down to differentiating interpretations and application of an EU directive.



Hence, Platform the part of The cooperative Bank have updated their Consumer BTL definition.

The information below has been imported from their official website.


What’s happening?


We are not making any changes to the Bank’s assessment of Buy-To-Let mortgages but simply redefining our understanding of when an application is a Consumer BTL or standard BTL.


Consumer BTL is a type of regulated business introduced to provide enhanced protections where BTL customers are not acting for business purposes.

It is the responsibility of the mortgage intermediary to determine if a case is Consumer BTL.


The Bank have updated our definition of a consumer BTL to the following –


Remortgage applications will be defined as Consumer BTL, where any of the following apply:


The applicant does not own any properties that are being let out on a rental basis (the property being remortgaged is sufficient to meet this rule if it is currently let out).


The purpose of the loan is not wholly or predominantly for business purposes.


The applicant or their relatives have lived in the property in the last two years and will not be residing in the property at any point in the future.


The key change you need to be aware of is the new two-year criteria which replace the ‘ever’ lived in the property, the changes will apply to new lending applications and existing customer variations.


Platform do not offer Consumer Buy-To-Let mortgages, and will still decline genuine Consumer BTL applications.

For more information and guidance


Click / web browser system


The Click / web browser system has been updated to reflect the revised Consumer BTL definition.

The following question has been updated:


Current question – Have any of the applicants, or any members of their families, lived in the property since purchase?


Updated question – Have any of the applicants, or any members of their families, lived in the property in the last two years?


If you need any help or need guidance, please feel free to call Care4Mortgages on 0113 2488181 to speak with one of our mortgage advisors. Our initial consultation is always free.


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