Speaking at a panel debate in the Financial Services Expo in London, Ian Andrew (pictured), managing director for intermediary sales, said: “If you’re an intermediary involved in the buy-to-let market the secret is to get yourself on the register as quickly as possible, we’ll be checking to make sure you are. When a consumer buy-to-let application comes in, as long as you’re on the register the case will be processed with minimal fuss.”
To comply with the directive, any property which is being privately let out which was not originally acquired for business purposes will fall into the consumer buy-to-let category. To advise on and arrange consumer buy-to-let business brokers be registered with the Financial Conduct Authority (FCA).
Andrews said Nationwide plans to add a few extra questions to its mortgage application to identify whether the applicant falls into the consumer buy-to-let category. He does not expect this to cause any disruption to the mortgage process. Nationwide predicts approximately 10% of its business to fall into the newly created regulated area which is roughly in line with the Treasury’s market wide estimation of 11%.
Louisa Sedgwick, head of intermediary distribution, confirmed Leeds Building Society would be offering consumer buy-to-let mortgages but had yet to make a decision over foreign currency loans.
The FCA analysed MLAR (Mortgage Lenders and Administrators) data for quarter two 2014 and reported that no more than 100 lenders would register to carry out consumer buy-to-let mortgages. It said it was expecting around 800 brokers to register in order to carry out broking activities for consumer buy to let.