15 Feb

Government 'should not regulate buy-to-let mortgages'

Government 'should not regulate buy-to-let mortgages'

The Treasury should not intervene in the buy-to-let mortgage market by introducing new regulations, industry leaders have stated.

In response to the government's consultation on whether to increase the scope of the mortgage regulation to include the buy-to-let sector, the Council of Mortgage Lenders (CML) warned against the idea.

According to the organisation, buy-to-let mortgages should be considered as commercial transactions and therefore should not fall under the remit of retail mortgage regulations.

Michael Coogan, CML director general, explained that official mechanisms to control the market could hinder rather than help it.

"As far as buy-to-let is concerned, the regulatory proposals are barking up the wrong tree - for amateur property investors, poor investment advice is the issue, not the mortgage," he said.

The Buildings Societies Association (BSA) agreed that the buy-to-let sector should not come under the same remit as owner occupied mortgages.

It stated that this form of regulation would not be "appropriate" because it would lead to further restrictions in the private rented sector.ADNFCR-1222-ID-19616238-ADNFCR

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