FSA on sticky wicket over Buy-To-Let regulation

Landlord Mortgages predicts that the FSA will be forced to crack down in 2008 as more nightmare buy-to-let stories are uncovered.

Lee Grandin, Managing Director, Landlord Mortgages, comments ‘It is fair to say that novice buy-to-let investors are most at risk from inappropriate investment return claims made by mortgage brokers and investment advisers. I am surprised that the FSA has not given guidance to buy-to-let mortgage brokers and mortgage lenders on what it expects them to disclose in respect to likely investment returns.

‘Indeed, it is not difficult to satisfy the request of the repossession litigation specialists Moore Blatch. Moore says that brokers should include risk warnings when selling a buy to let product to protect themselves from litigation.’

Grandin further comments 'From day one, ten years ago, all Landlord Mortgages product terms carried a warning (I/We realise that a profit/capital gain/rental income/second pension is not guaranteed from this property purchase/remortgage. I/We understand that the value of our property investment can go down as well as up. ) Back then I was a one man band but considered such a clause as mere common sense.’ 'Someone should ask the FSA for the reasoning behind the decision to regulate Landlord Insurance and not Landlord Mortgages.'

Investors interested in speaking to Landlord Mortgages can contact them on 0800 917 3324 or via www.lml.co.uk

Buy To Let Property
Buy To Let Tips