6 Oct

Mortgages 'should not be controlled by the FSA'

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.
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