Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
There has been a great response to my last post ”effect of pension release on the BTL market” so I thought I’d post the following both as a WARNING and for discussion.
Currently the Buy To Let financial advice market is entirely unregulated. This means that so called advisors can undertake mortgage broking activities without any come back. The FCA have decided that BTL constitutes a commercial transaction. Unlike regulated mortgages (residential) where you can sue the advisor to the grave and beyond, and where they are required to have, Qualifications, Professional Indemnity Insurance and cover from the Financial Services compensation Scheme, you can do nothing if your investment in BTL goes bad.
Up until now you could argue that as being acceptable since the number of BTL mortgages taken out have been relatively small and the people taking them have been mainly small business people or investors.
That is now changing…. the Grey Haired investors with money for deposits from their pensions are starting to flood the market in BTL (thanks to television programmes telling them how easy it is to make money), these are the same ”poor old grannies who are happy to take money when its good but then decide to play the ”Woe Me” card when it doesn’t go their way.
This WILL be a ticking time bomb…. I can see the headlines from solicitors now ”pensioners loose millions in the BTL markets and advisors (sharks) are to blame for advice etc.
The SHARKS are circling…… I have already started to receive marketing literature from unregulated firms which if i didn’t know better I would probably take further.
My view is easy and simply, as of tomorrow, take BTL mortgages under the FCA control and only allow them to be sold by regulated mortgage advisors.
Problem Solved !!
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