While lenders have to be registered using the Fsa to be able to advise clients on residential mortgages, no such rule is available for buy-to-let mortgages.
It is because buy-to-let mortgages are regarded as as commercial financial loans and also the Fsa doesn’t regulate this kind of finance.
No matter the truth that a home loan broker doesn’t need to be registered to recommend buy-to-let mortgages, if you’re using for any buy-to-let mortgage you might find that the large financial company is registered using the Fsa anyway simply because they also broker residential mortgages.
Due to the various rules, a home loan broker doesn’t need to stick to the same systems for buy-to-let mortgage programs because they provide for residential mortgages. The Fsa hasn’t, up to now, released some strict rules and rules to follow along with for this kind of mortgage.
However, it doesn’t mean that you’ll receive inferior service for the investment mortgage programs. Most lenders treat all mortgage programs using the utmost care and expertise.
Some loan companies may also only cope with lenders who’re registered with and controlled through the Fsa to make sure that their clients are experiencing probably the most professional advice possible.
Therefore it may be advantageous for any large financial company to join up using the Fsa even when they merely cope with buy-to-let lending. The greater loan companies a home loan broker can cope with – the greater they’ll have the ability to advise their customers.
As the rules for residential mortgages don’t presently cover investment mortgages, it’s possible that over the following couple of years the Fsa will extend their forces to incorporate the regulating of buy-to-let mortgages.
If that’s to be then lenders who’re presently non listed but who cope with buy-to-let mortgages will likely have to be registered using the industry regulator.