15
Feb
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.