Speaking at the Financial Services Expo in London today Keith Hale, technical mortgage specialist at the Financial Conduct Authority, said stricter regulation of accidental landlords under the Mortgage Credit Directive might prompt lenders to withdraw from serving this type of borrower, instead focusing on unregulated buy-to-let.
But he said it was a commercial decision for lenders to make and would not be drawn on whether the regulator was worried it might reduce competition.
He said: “I don’t think that is for us to have a concern about. Firms will make business decisions as to which side of the divide they want to be.”
Family buy-to-let was brought into a stricter regulatory environment some years ago, causing most lenders to abandon the product completely.
