Of the 200 intermediaries questioned, 36.5 per cent said they were against BTL regulation, while just 0.5 per cent did not state a preference.
As it currently stands, the FSA has partial responsibility for the regulation of BTL where the loan is secured on the borrower’s own home, i.e. let-to-buy, rather than the property being bought to let, or a member of the borrower’s immediate family living in the property at the time the loan is completed.
Jeremy Claridge, head of specialist mortgages at Alliance & Leicester, commented: “Brokers continue to call for BTL to be brought under the regulatory responsibility of the FSA. Given the increased numbers of investor landlords continuing to enter this marketplace, either for long-term equity gain or a regular monthly income, it would make sense for the FSA, as the UK’s principal regulator of financial services, to be responsible for a market that is now worth over £38 billion annually.”
Darren Pescod, managing director for The Mortgage Broker Ltd, said: “I totally agree that BTL should be regulated and come in line with normal mortgage regulation. It would be good for the industry and put everyone on the same level. It would also stop some brokers doing BTL deals when they’re actually residential cases. I think the FSA will bring it under regulation and I hope that it will be before 2010.”
