Property investors should be aware that the safeguards in the mortgage market from FSA regulation will not apply to buy-to-let or commercial mortgages, says Mortgages for Business.
The investment property broker points out that buy-to-let and commercial mortgages will remain non-regulated after M-Day on October 31 unless 40 per cent of the property, including the land, is being used as a residence by the borrower or a direct family member.
Mortgages for Business is advising property investors to use a member of the National Association of Commercial Finance Brokers for transactions.
It says the body has a strict code of conduct, obliges its members to maintain professional ind-emnity insurance and has rigorous grievance procedures in place which are designed to safeguard the investor and preserve the integrity of the industry.
Managing director David Whittaker says: “Buy-to-let and commercial mortgage applications almost all fall into the non-regulated category because they are considered business transactions and are therefore not afforded the cover personal regulated mortgage transactions receive.
“If investors are looking for peace of mind when they are transacting property investment mortgages, we would urge them to use a National Association of Commercial Finance Brokers member.”