In a statement to brokers, Santander said it would only classify business as consumer buy to let when it offers or re-offers cases after its MCD live date, which is planned for early next year ahead of the 21 March deadline.
Under MCD rules, any buy-to-let transactions that are entered into by the borrower outside of business or investment purposes will be classified as consumer buy to let. Santander said standard, unregulated transactions will be classified as investment buy to let.
Santander added that it will continue to use the same lending policy, rental coverage calculation and products for both consumer and investment buy to let.
Changes being made in advance of Santander’s MCD implementation date are being introduced to minimise any impacts on pipeline applications, it said. Under an agreement in principle for a consumer buy-to-let deal, brokers will need to ensure they have or intend to have the correct regulatory permissions.
For full mortgage applications, there will be a new question to determine if the buy-to-let application is for investment purposes.
Brokers can now also register their residential and buy-to-let mortgage clients to receive a text message and/or email to keep them updated on the stage of their application.
