Proposed regulation of buy-to-let mortgages for landlords is attacked

News Category: Industry News

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A proposal that all buy-to-let mortgages for landlords should be regulated by the Financial Services Authority (FSA) has been criticised by a lending expert.

Earlier in the week the British Property Federation said that FSA regulation of buy-to-let mortgages would end to the reckless lending that had helped bring about the housing market slump.

But David Whittaker, managing director of broker Mortgages for Businesses, has attacked the plan, which he says is limited and needs to be better thought out.

He said many mortgage lenders were actually in better financial positions than banks.

"A couple of lenders have got bad loans on their books, but if you take a specialist lender like Paragon – who only lend on buy-to-let – their mortgage book is cleaner than any of the banks by any measurement," he said.

Mr Whittaker added that regulation would be difficult to carry out as estate agents and financial advisers have their own vested interests in property investments.

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