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Unregulated buy-to-let set to flourish post-MMR

Ryan Fowler

February 18, 2014

The residential market will have more restrictions regarding affordability after April 26, yet buy-to-let will remain largely unregulated.

Penn said: “The buy-to-let market will be more of the forefront of the mortgage market, because it’s unregulated and most brokers still processing treat that type of protection.

“It allows the lender to meet their target by diverting business there.

“That period could go on for three to six months – it depends how long it takes lenders to become comfortable.”

Under MMR there will be more of onus on brokers to assess affordability, as bank statements have to be presented up front for example.

Intelliflo’s Compliance and Workflow product will play a key role in ensuring mortgage businesses are compliant.

Penn added: “There will be an element of adjustment where business to residential will slow as lenders have to adapt and adjust to the new environment.”


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