From 21 March 2016 new rules will regulate buy-to-let mortgages. There will be two types of buy-to-let borrowers - consumer and professional borrowers.

As with normal consumer mortgages, rigorous checks as to affordability, etc. will need to be considered for consumer buy-to-let mortgages.

Buy-to-let mortgages are currently unregulated and this change will regulate buy-to-let mortgages for consumer landlords, bringing them in line with mainstream residential mortgage requirements.

The Mortgage Credit Directive could end the availability of mortgages in a different currencies (i.e, the purchase of a holiday home abroad). If there is a 20% fluctuation in two currencies lenders will need to offer an option to switch the mortgages, which would be extremely costly to the mortgage provider.

A professional landlord is defined as someone who is currently renting out property or has specifically obtained a mortgage for the purpose of running a buy-to-let business. The legislation allows the individual borrower to declare that they are a professional rather than a consumer.