Consumer buy-to-let is a customer segment borne out of the Mortgage Credit Directive which will cover borrowers that let out a property but not for business purposes. Should a borrower fall under this definition, they will find their mortgage fall under the Financial Conduct Authority’s regulatory remit.
During a panel debate on the implications of the Mortgage Credit Directive, Syms (pictured) told attendees at The Mortgage and Protection Event that advisers should keep a record of their recommendations.
A poll carried out by Mortgage Solutions of 281 respondents in September found eight in 10 brokers do not record customer calls, which could pose a risk should firms be subject to scheme abuse.
Syms said: “…With buy to let, people perhaps don’t have the records in place with regards to the advice piece as much as they would do with residential mortgages. I think one of the changes particularly in consumer buy to let is we have to consider recording our advice.
“It’s fine for a lender to say don’t worry about it, we’ll work out whether it’s a consumer buy to let or not, but as advisers we need to make sure we record the advice and how we reached the decision for that particular recommendation,” she added.
Watch Syms in action below at The Mortgage and Protection Event in Southampton earlier today.
It’s not too late to register for our free-to-attend Mortgage and Protection Event roadshows next week in Warwick, Cheshire and Newcastle. Meanwhile, follow all the action on Twitter #TMPE15.