Could a Consumer Buy to Let (CBTL) mortgage help your client?.

With almost a third of landlords reported to have arrived in the situation 'by accident', it’s not surprising to hear that many people who find themselves with a property to rent out aren’t entirely sure of the finance options available to them.

In this article, we discuss how Together can help you support your clients who find themselves as ‘accidental landlords’.

What is a Consumer Buy to Let mortgage?

A Consumer Buy to Let mortgage (CBTL) is a type of Buy to Let mortgage (BTL) that is regulated and provides ‘accidental landlords’ with greater consumer protection than under a standard Buy to Let (which are generally intended for experienced landlords with the primary purpose of property investment). Consumer Buy to Let was created for property owners who don’t fit the typical profile of a professional landlord and are letting out a property due to specific personal circumstances. Usually, they haven’t intended to buy the property to rent out but now find themselves in a position where letting it out is a financially sensible or necessary solution.

What are some typical Consumer Buy to Let lending scenarios?

Here are some common scenarios where a customer would fall under the definition of a Consumer Buy to Let mortgage borrower:

• They’ve inherited a property

They may have inherited a property from a family member but they don’t wish to sell it immediately. Instead, they can rent it out to generate income, often to cover ongoing costs like maintenance, taxes, or any outstanding mortgage on the property. It also gives them the freedom to sell the property or move in themselves later down the line.

• They’ve relocated for work or personal reasons

A homeowner may need to move to a different place for work or personal reasons, but might want to retain ownership of their current home. They may love the area and plan on moving back in the future. Renting out the property allows them to cover mortgage payments and generate rental income while living elsewhere.

• There’s been a change in a relationship

After a significant life change, such as a marriage, divorce, or moving in with a partner, an individual may wish to rent out their previous home rather than sell it.

• They’ve downsized or upsized

When a homeowner decides to downsize or upsize to a different property due to a change in family size or financial situation, they could choose to keep their existing property as a rental. This scenario often occurs when the owner believes the property may increase in value or wants to generate rental income.

• There’s been a delay selling their existing property

Due to a sluggish property market or unfavourable economic conditions, the owner may struggle to sell their home at the desired price. Renting out the property may enable them to avoid financial loss.

• They’re elderly homeowners moving to assisted living

An elderly homeowner may be looking to move to an assisted living facility or move in with family, but they may not want to sell their home. They may wish to pass it on to family as part of an inheritance, or they may simply be waiting on a better time to sell. Renting out the property can provide additional income to cover care costs or supplement their retirement funds.

In all these examples, the property owner hasn’t initially purchased the property to rent it out for business purposes but has become a landlord due to circumstances that make letting the property a sensible or necessary choice.

What restrictions and issues should you ensure your client is aware of?

Here are a few things that your client needs to be aware of:

• With a Consumer Buy to Let mortgage from Together, your client cannot rent the property out to a family member. They could rent out to a relative using a residential mortgage, but their personal employed income would be used for affordability rather than rental income with Together.


• As the landlord, your client may be responsible for additional costs, such as general maintenance for the property and any service charges or ground rent.


• If they have an existing personal mortgage on the property, they will need to amend their current agreement or obtain consent prior to letting out their home.


• If they’re looking to refinance, and have added other rental properties to their portfolio, they’ll need to refinance to a full Buy to Let mortgage.


• Your client will need to keep up with their regular monthly mortgage payments throughout any periods the property doesn’t have tenants, and they have no rental income, or their property could be at risk of repossession.

At Together, we can help you support your clients

We can offer*:

• First and Second Charge Consumer Buy to Let mortgages
• Variable, 2-year and 5-year fixed rate mortgages
• Consent to follow post offer (Second Charge only)
• No maximum age restriction
• Projected rental income accepted even if no Assured Shorthold Tenancy is in place
• Cases from UK expatriates are considered

*Correct at time of publishing

Please check out our latest Product Guides for the latest criteria and rates on Consumer Buy to Let mortgages.

Consumer Buy to Let mortgages are just one of our range of flexible finance products, designed to help as many people, in as many diverse scenarios, as possible. We always make our common-sense lending decisions based on individual circumstances, which often means we can provide solutions when others can’t (or won’t).

If you’d like to speak to us about how we can support your clients’ property ambitions, please call our expert team.

Packaging partners: Speak to our team on 0161 933 7101 for further support.

Network and Clubs brokers: Get in touch on 0161 468 3993.