Article 18

Conditions applicable to creditors and credit intermediaries

Conduct of business obligations when providing consumer buy-to-let mortgage products to consumers

1.

(1) When manufacturing consumer buy-to-let mortgage contracts or granting, intermediating or providing advisory services on consumer buy-to-let mortgage contracts and, where appropriate, ancillary services to consumers or when executing a consumer buy-to-let mortgage contract, the creditor or credit intermediary must act honestly, fairly, transparently and professionally, taking account of the rights and interests of the consumers.

(2) The granting, intermediating or provision of advisory services on consumer buy-to-let mortgage contracts and, where appropriate, the provision of ancillary services must be based on -

(a) information about the borrower’s circumstances;

(b) any specific requirement made known by the borrower;

(c) reasonable assumptions about risks to the borrower’s situation over the term of the contract;

(d) where the activity is the provision of advisory services, the information set out in paragraph 13(4)(a) and (b); and

(e) information on the typical rental levels and rental demands within the property’s locality and the impact of future interest rate rises, rental voids, rental arrears and typical letting costs.