Landlords set to be affected by FSA mortgage market reforms
News Category: Industry News
Published: 19-Oct-2009
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Landlords are set to be affected by proposed new regulations on the mortgage market that have been announced by the Financial Services Authority (FSA).
The FSA's plans include increasing its powers to cover regulation of buy-to-let mortgages and all lending secured against a home.
Its discussion paper, which reflects the authority's new interventionist stance, says the FSA wants all mortgage advisors to be personally accountable to it.
It also wants to impose affordability tests on all mortgage applications.
Jon Pain, FSA managing director of supervision, said that the FSA needs to ensure that only people and landlords who could afford to pay their mortgages off were granted them.
"The reforms that we have announced today will ensure that the mortgage market works better for consumers and that it is sustainable for firms," he said.
Earlier this month, David Whittaker, managing director of broker Mortgages for Business, attacked the then-rumoured plans, saying that many buy-to-let mortgage lenders were more financially stable than banks.
The FSA proposals now enter a public discussion period until January 30th 2010.
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