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Warning over non-regulated status of BTL

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.”


MCCB calls for reasons-why letters to be retained

The Mortgage Code Compliance Board has identified key issues for the industry after the FSA takes over the regulation of mortgages. Its final annual report published last week, the MCCB recommends that in all non-advised sales, consumers should be given a warning of the consequences of not obtaining advice. It also stated that the title […]

CPAs should go

The dinosaurs from Jurassic Life are out of their pens again trying to justify CPAs. Annuities have their place but it is morally and fiscally wrong that, by law, everyone is forced to put their second-biggest asset in the hands of the actuarial profession 10 years before they are statistically dead. If pension contributions ever […]

Bamford in plea for unity after yes vote for merger

Sofa chairman Nick Bamford is calling on IFAs who opposed the merger between Sofa and the LIA to support it now it has won the go-ahead from members. Both organisations have voted in favour of the mer-ger and Bamford is asking IFAs who were against the move, such as Harry Katz of Norwest Consultants, not […]

PI rates could be halved as fears are dispelled

Professional indemnity insurance premiums could fall by 50 per cent because problems with IFAs have failed to materialise, says PI broker PYV. PYV says it has recently been able to negotiate up to 50 per cent reductions in premiums for some IFAs and director Neil Pointon expects excess and conditions terms to improve in the […]

Who pays inheritance tax and how to declare it

By Kim Jarvis, Canada Life In this article we look at which forms personal representatives (PRs) need to complete and who actually pays inheritance tax (IHT).  To recap, under current rules, any part of the estate that falls within the available nil-rate band (NRB), currently £325,000, is taxed at zero. Anything in excess of the NRB […]


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