Mortgage Express managing director Tim Dawson has hit out at AMI calls for buy to let to come under a code of practice, saying the comments are “misplaced”.
The AMI says introducing a code of practice would bolster confidence in the BTL sector, a view backed by Zurich Mortgage Network which wants a code similar to the Mortgage Code Compliance Board to become the industry norm for BTL.
Dawson argues that BTL is a commercial transaction without the consequence of the borrower losing the roof over their head. He says although you can regulate a mortgage, you cannot regulate market conditions and that problems experienced by investors are not generally due to the mortgage but because of the property bought.
He says the image of unscrupulous cowboys selling BTL mortgages to investors is not a reflection of what is happening.
Dawson says: “There is no point in regulation for its own sake and BTL mortgages should be viewed as commercial transactions outside the ambit of regulation.”
Zurich Mortgage Network director Richard Coulson says: “Zurich believes it is a serious oversight not to include BTL in the impending mortgage regulation.”
Mortgage edge, p33