Adequate explanations
8.—(1) Creditors and, where applicable, credit intermediaries, must provide an adequate explanation to the borrower on a proposed consumer buy-to-let mortgage contract and any ancillary services, in order to place the borrower in a position enabling the borrower to assess whether the proposed agreement and ancillary services are adapted to the borrower’s needs and financial situation.
(2) The adequate explanation must, where applicable, include—
(a)in the case of creditors, the information described in paragraph 6(2);
(b)in the case of credit intermediaries, the information described in paragraphs 6(2) and 7(1); and
(c)in all cases—
(i)the essential characteristics of the consumer buy-to-let mortgage contract proposed;
(ii)the specific effect the contract proposed may have on the borrower, including the consequences of default in payment by the borrower; and
(iii)where ancillary services are bundled with a consumer buy-to-let mortgage contract, whether each component of the bundle can be terminated separately and the implications for the borrower of doing so.