Buy-to-let lenders look to boost good practice
The Council of Mortgage Lenders trade body has signed up 31 lenders, representing around 90% of the market, to its statement of practice.
It aims to ensure there is a clear explanation of the full terms of the loan given to all buy-to-let borrowers. This includes information about being a landlord and the responsibilities associated with it.
Other aspects include how lenders deal with financial difficulties, ways to prevent fraud and how to respond to customer complaints.
The charter has been endorsed by the Residential Landlords Association, the Association of Residential Letting Agents, the Association of Mortgage Intermediaries, the Intermediary Mortgage Lenders Association, and the British Bankers Association.
Council of Mortgage Lenders director-general Paul Smee said it was important for lenders to make sure borrowers know exactly where they stand when taking out a loan.
“Lenders know how important it is to have a transparent mortgage market, in which borrowers can have confidence, and where lending policy is both responsible and clearly understood,” he said.
“The new buy-to-let statement of practice reflects what responsible lenders already do and offers a clear explanation of how buy-to-let lenders operate. We hope it will make a valuable contribution to understanding the buy-to-let lending environment.”