FSA threatens more regulation for BtL's
29/10/2009 - Stricter criteria checks for borrowers
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Once again the regulation of the Buy to let mortgage market has been in the news as the Financial Services Authority released its latest mortgage market review with a view to adding more regulation to the rental sector.
Currently the residential mortgage market is heavily regulated and has been for some years. Mortgage advisors are required to pass exams and can only trade if they meet strict guidelines set out by the FSA. Buy to Let mortgages where left out of the recent overhaul and exams are not a pre requisite for brokers although most would expect to sell both residential and Buy to Let Mortgages.
The days when only property investors or professional landlords owned rental properties have long past and around 30 per cent of all buy to lets are owned by landlords with just one rental property. The proposal by the FSA would meant that Buy to Let lenders would be expected to adhere to a similar way of working at other lenders. This would include more strenuous checks on affordability.
