Q&As

The Financial Services (Distance Marketing) Regulations 2004, SI 2004/2095, define 'consumer' as 'any individual who, in contracts to which these Regulations apply, is acting for purposes which are outside any business he may carry on'. Is a borrower under a buy to let mortgage a consumer for these purposes?

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Published on LexisPSL on 07/10/2020

The following Financial Services Q&A provides comprehensive and up to date legal information covering:

  • The Financial Services (Distance Marketing) Regulations 2004, SI 2004/2095, define 'consumer' as 'any individual who, in contracts to which these Regulations apply, is acting for purposes which are outside any business he may carry on'. Is a borrower under a buy to let mortgage a consumer for these purposes?

The Financial Services (Distance Marketing) Regulations 2004, SI 2004/2095, define 'consumer' as 'any individual who, in contracts to which these Regulations apply, is acting for purposes which are outside any business he may carry on'. Is a borrower under a buy to let mortgage a consumer for these purposes?

See Practice Note: Regulation of consumer buy-to-let lending in the UK, which describes buy-to-let mortgage lending and in particular consumer buy-to-let (CBTL) lending. It states that a CBTL mortgage contract is a buy-to-let 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 him.

It adds:

'A borrower is regarded as having entered into a buy-to-let mortgage contract for business purposes in the following

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