6
Oct
Mortgages 'should not be controlled by the FSA'
Team Association customers might be interested
to learn that the Financial Services Authority (FSA) should not
have the power to regulate all buy-to-let mortgages, according to
one property expert.
David Whittaker, managing director at Mortgages for Business, said
that such a proposal would represent a "limited view" of the
property market and work only on the assumption that landlords are
financed by banks and suffer when lending levels are reduced.
His comments follow the remarks of the British Property Federation,
which claimed that the FSA should regulate buy-to-let mortgages in
order to help refinance the housing market.
"Normally, a property [investment] goes wrong because you've bought
the wrong property, the wrong location, the wrong condition or the
wrong rent," stated Mr Whittaker.
He went on to point out that mortgage do not tend to greatly
influence property investment decisions.
This news comes after Paragon Mortgages recently reported that 88.8
per cent of landlords found it more difficult to secure a
buy-to-let mortgage in the three months up to August 2009 than in
the previous three months.
