The managing director of Precise Mortgages, Alan Cleary, has said he would “regulate the crap out of buy-to-let” if he were running the FCA.
Speaking at the Financial Services Expo in London last week, Mr Cleary said: “I’ve got the same view I had in 2004 – it is not so much about lenders or brokers misbehaving, but about consumer protection.
“The buy-to-let market already acts like a regulated market; all the lenders treat it as regulated. But, for me, it is about ensuring consumer protection.”
At the moment, the FCA regulates residential mortgages, home purchase plans, home reversion plans, sale-and-rent-back and bridging loans, provided these are secured with a first charge.
Mr Cleary’s comments precede the partial regulation of buy-to-let as part of the EU’s mortgage credit directive.
The directive has caused some concern for mortgage lenders and intermediaries, as it requires more paperwork than the UK’s mortgage market review regime.
Adviser view
David Whittaker, managing director of national advisory firm Mortgages for Business, said: “If buy-to-let grows like some are predicting – to 30 per cent of the market – you couldn’t have 70 per cent of the market regulated and 30 per cent not. I just hope we all behave ourselves sufficiently well not to give the regulator the excuse to hasten the day of regulation.”
