CBTL credit agreement

179a buy-to-let credit agreement 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. For this purpose examples of when a borrower is to be regarded as entering into a buy-to-let credit agreement for the purpose of a business carried on, or intended to be carried on by him are:

1. (a)
   1. (i) the borrower previously purchased, or is entering into a buy-to-let credit agreement in order to finance the purchase by him of, the land to which the agreement relates; and
   2. (ii) at the time of the purchase the borrower intended that the land would be occupied as a dwelling on the basis of a rental agreement and would not at any time be occupied as a dwelling by the borrower or by a related person, or, where the borrower has not yet purchased the land, the borrower has such an intention at the time of entering into the buy-to-let credit agreement; and
   3. (iii) where the borrower has purchased the land, since the time of the purchase the land has not at any time been occupied as a dwelling by the borrower or by a related person; or
2. (b) the borrower is the owner of land, other than the land to which the buy-to-let credit agreement relates, which is:
   1. (i) occupied as a dwelling on the basis of a rental agreement and is not occupied as a dwelling by the borrower or by a related person; or
   2. (ii) subject to a mortgage under a buy-to-let credit agreement.

[Note: articles 4(1) and 4(4) of the MCD Order]