The survey questioned 201 intermediaries on the future of the mortgage market and found 70 per cent wanted BTL to be regulated.
However, while mortgage regulation was believed to have brought greater transparency to the market, 41 per cent of brokers said it had driven down profits and would make their business less profitable in the future.
Mehrdad Yousefi, head of intermediary mortgages at A&L, commented: “BTL been an undoubted success story for mortgage intermediaries. However, it is surprising that there is such overwhelming support for the regulation of this market sector. Many brokers I’ve spoken to feel the mortgage market is adequately regulated already.
“The aim of regulation is to provide consumer protection. BTL, by its nature, is more of a business transaction and does not have the same regulatory issues as mainstream mortgages.
“The call for regulation is probably due to the rise in people wanting to cash in on the growth of this sector. Some ‘amateur landlords’ may wish to seek advice before venturing into BTL to see if it is the appropriate investment vehicle for them.”
Brian Poole, mortgage adviser for A M Ruthven & Associates Ltd, was unsurprised by the findings. He said: “BTL is a commercial transaction, but clients need to know what they are getting into. Not everyone has great business sense, so they should have access to the same advice.”
