CML 'disagrees' with buy to let proposals

16 February 2010

Written by Steve Olejnik

The Council of Mortgage Lenders (CML) does not agree with the Treasury's plans to regulate the buy to let market.

It revealed its views yesterday (February 15th) and explained that the government's proposal to extend conduct of business regulation to the buy to let sector should not be implemented for several reasons.

Regulation to cover second-charge mortgages and to protect borrowers when mortgage books are sold on were approved by the CML.

However, regulating buy to let loans would not protect consumers and such lending should not be governed in the same way that retail mortgages are, it was claimed.

Director general of the CML Michael Coogan advised that the Treasury and FSA must "tread carefully".

"As far as buy to let is concerned, the regulatory proposals are barking up the wrong tree - for amateur property investors, poor investment advice is the issue, not the mortgage," he claimed.

The Building Societies Association has also expressed its disapproval with the plans.

Head of mortgage policy at the organisation Paul Broadhead said the proposals would create loopholes for less reputable lenders.

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