Mortgage News
BPF calls on FSA to regulate buy-to-let mortgages
The British Property Federation (BPF) has called for all buy-to-let mortgages and property investment clubs to be regulated by
the FSA in a bid to curb reckless lending and help refinance the housing market.
In its ‘Responsible Regulation’ report, the BPF said the black hole of irresponsible lending had damaged both the housing sector’s reputation and the ability of banks to lend. As a result, the
body said professional landlords could not expand their portfolios despite “insatiable” demand for
renting.
Ian Fletcher, director of policy at the BPF, said many lenders simply threw money at buy-tolet
borrowers during the boom without sufficient checks on who they were lending to or what they
were lending for.
“We need to make sure the property-fuelled meltdown does not happen again. Professional
landlords have suffered as a result of banks refusing to lend. If landlords can not expand or
invest in new homes, it hurts all areas of society.”
Mark Harris, director at Savills Private Finance, said it was vital that measures were in place to
ensure the private rental market could continue to expand.
“Better regulation is therefore needed if we are to move from an age of recklessness into a period of responsibility.” “The buy-to-let market has borne the brunt of the credit crunch.”
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