As more nightmare buy-to-let stories are uncovered in the New Year, Lee Grandin, managing director of Landlord Mortgages believes that the FSA will be forced to take action.
He said: "It is fair to say that novice buy-to-let investors are most at risk from inappropriate investment return claims made by mortgage brokers and investment advisers.
"I am surprised that the FSA has not given guidance to buy-to-let mortgage brokers and mortgage lenders on what it expects them to disclose in respect to likely investment returns.
"Indeed, it is not difficult to satisfy the request of the repossession litigation specialists Moore Blatch. Moore says that brokers should include risk warnings when selling a buy to let product to protect themselves from litigation."
He concluded: "Someone should ask the FSA for the reasoning behind the decision to regulate Landlord Insurance and not Landlord Mortgages."
