Speaking at the Mortgage Introducer BTL Forum in Manchester, Fox slammed claims that the regulator is poised to bring BTL under its regulatory regime, but admitted that there was a very real need for the sector to adopt industry standards.
Fox said: “I don’t believe the FSA will regulate BTL and for those who claim it is on the FSA’s agenda, I would say ‘dream on’. The FSA has lots of problems at the moment and the last thing it would want is more issues in terms of regulating BTL. The only thing that could change its mind would be the EU directive next year, but that is on credit issues and is unlikely to look at the business side.”
Fox added that while many brokers operating in the BTL sector were glad it is outside the FSA’s mortgage definition, the adoption of professional standards was crucial to the market’s continued success.
“There is no need for regulation requirements on BTL advice, but there is a very real need for adopting industry standards. Advice given to clients should stand up to close examination, and great service now and further down the line where changes are afoot will distinguish those professionals from others,” Fox said.
David Hitchmough, head of sales (North) at the Mortgage Times Group, added: “BTL accounts for 12 per cent of lending in the UK, but purchases are starting to slow due to market turmoil. But the market remains buoyant and in terms of HMOs, the market is growing because of the growing student and immigrant population.”
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