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Heron: MCD will restrict accidental landlords

After the European Mortgage Credit Directive is introduced in March 2016 he said some lenders will prioritise other developments and therefore restrict product availability.

Despite his warning, Heron praised the Financial Conduct Authority’s approach to regulation as “pragmatic and proportionate” after the regulator released a policy document confirming how the EMCD will be implemented on Friday last week.

Heron said: “Some lenders may be forced to prioritise other developments ahead of consumer buy-to-let thereby restricting access for consumers to consumer buy-to-let products in the early months following the March 2016 deadline.

“The timetable remains tight given the scale of regulatory change elsewhere in the sector at present.”

Last week the FCA confirmed that firms will have to supply data to the regulator on a quarterly basis, firms will no longer require Consumer Credit Act permissions and business buy-to-let intermediation will remain unregulated.

Heron added: “The FCA’s approach is pragmatic and proportionate.

“The registration process is particularly straightforward for firms holding existing “part 4A” permissions.

“The reporting requirements require only data that buy-to-let lenders should already collect on their business and the regime for complaints also demonstrates a measured approach by setting a minimum set of standards that lenders can build upon.”

The regulator said it will continue to consult on changes to buy-to-let policy after regulation comes into force next year.


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