One broker who contacted Mortgage Introducer – News said as buy-to-let is not regulated, he has found a number of lenders who provide products in this area are not producing hard copy quotes although they are in demand from clients.
He said: “As buy-to-let does not come under the FSA’s remit we have found hardly any lenders produce a form of hard copy quotes any more.
‘They simply say you don’t need a KFI. I would agree but many of our customers do want a quote.”
Rod Murdison, proprietor of Murdison & Browning, which specialises in buy-to-let, said although the majority of his clients do not ask for hard copy quotes, he would tend to get any quotes from the sourcing systems.
He said: “Normally the buy-to-let clients just want to know the valuation fees, redemption penalties and what the monthly costs will be.
“But if I needed a hard copy quote, I tend to go to Trigold or Moneyfacts and get one from there.”
Rob Clifford, managing director of mortgageforce, commented: “I’m sure there are some buy-to-let lenders who say that strictly speaking the client does not need a KFI.
“Buy-to-let should be treated by brokers as any other regulated activity and you would want the lender to provide the tools that will help protect you. But the reality is you have to rely on sourcing systems as well.”
John Heron, managing director of buy-to-let lender Paragon Mortgages, said: “We provide illustrations which are on our website and brokers can also visit the sourcing systems. We cannot produce a KFI in the FSA’s format as this would be breaching its rules.”
