I've just seen this story and thought I 'd just do a cut and paste from Letting Agent Today who are reporting on a story broken by Sky News. We all need to keep our eye on this story as it evolves as it may limit landlords' access to finance. The cut and paste reads:
A letter from the Financial Conduct Authority, leaked to Sky News,
suggests that the body is drawing up plans to tighten scrutiny of buy to
let mortgage lending.
The FCA is believed to have sent copies of the letter to lenders for
which it has regulatory responsibilities, confirming a warning - much
predicted in recent months - that it would intervene in the buy to let
sector.
Sky says the letter is from Philip Salter, the FCA's director of retail lending.
Extracts from the letter suggest the FCA is "considering to what
extent poor BTL underwriting by firms solo-regulated by the FCA might
compromise the advancement of our objectives - in particular our
objective to protect and enhance the integrity of the UK financial
system, as well as the potential for poor BTL lending to affect the fair
treatment of customers with regulated products".
It also says "there is a risk that poor standards of lending could
emerge in firms that would not be subject to the Prudential Regulation
Authority's proposals" and repeats the FCA’s pledge to “actively monitor
the non-bank lending sector of the BTL market to ascertain whether we
need to intervene to advance our operational objectives."
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