1.1 This supervisory statement (SS) is relevant to all firms regulated by the Prudential Regulation Authority (PRA) that undertake buy-to-let lending that is not already subject to Financial Conduct Authority (FCA) regulation. The FCA regulates buy-to-let lending to related persons through their Mortgages and Home Finance: Conduct of Business sourcebook (MCOB) and lending in relation to consumer buy-to-let mortgage contracts through the Mortgage Credit Directive Order 2015: [A 'consumer buy-to-let mortgage contract' means a buy-to-let mortgage contract which is not entered into by the borrower wholly or predominantly for the purposes of a business carried on, or intended to be carried on, by the borrower.] this SS does not apply to either of these types of lending. The PRA expects regulated firms to ensure that the standards contained in this SS are adopted by other firms undertaking buy-to-let lending within their groups.

1.2 The purpose of this SS is to:

(a) outline the PRA's expectation of minimum standards that firms should use to underwrite buy-to-let mortgage contracts,

(b)[deleted]

1.3 For the purposes of paragraph 1.2(a) firms should consider a buy-to-let mortgage contract as a contract under which:

(a) the lender provides credit to the borrower;

(b) the obligation of the borrower to repay is secured by a mortgage on land in the United Kingdom and in pounds sterling;