The comments came after it became clear that certain lenders, including BM Solutions would not take business from buy-to-let and commercial brokers who were not regulated by the FSA.
Keith Heron, chief executive of the NACFB, said: “We believe that the buy-to-let sector is better off self-regulated and will fight any moves aimed at changing the status-quo.”
Matt Grayson, public relations manager for BM Solutions, reiterated the lender’s position that it would only deal with regulated brokers.
He said; “We believe buy-to-let investors will be best protected by being brought under the regulatory umbrella, which is why we have taken our position over brokers who are remaining outside FSA jurisdiction.”
Commercial mortgage broker Michael Donnelly, owner of Annexe Business Consultants, said: “It is getting like regulation through the back door and at the thirteenth hour. Some lenders will only do business with you if you go via an authorised packager, many of who only accept business from regulated brokers.”
He said that foreign mortgages posed a far greater threat of mis-selling then buy-to-let.
Roger Hillier, product development manager at Mortgage Express, disagreed with Grayson.
He commented: “There are already a number of mechanisms in place to protect buy-to-let investors. Any problems that do exist are generally encountered by the inexperienced investor choosing the wrong type of property. You can’t regulate for this - it is just a question of investors doing their homework.”
