Carswell, regional sales manager at the lender, told an audience at the Buy to Let Market Forum in Birmingham that lenders would continue to be vigilant over the source of buy-to-let deposits.

“There is growing concern about some of the lack of transparency around transactions,” he said.

“We want to see where the deposit is coming from. In terms of below market valuations, we’re not against someone getting a bargain but we do want to see is full transparency.”

Speaking to an audience of brokers at Villa Park, he went on to say that the industry must be vigilant over the prospect of buy-to-let properties being used for other purposes.

“We have a growing trend where buy-to-lets are used as a means of obtaining a residential mortgage as well because you can get it on an interest-only and because you don’t necessarily need to prove your income.

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“More transactions these days are done over the internet and the telephone and there are a few unscrupulous people out there who may try and use any means necessary to obtain a residential mortgage.”