Buy to Let mortgages are the latest products mooted to feel the cold embrace of government regulation, as they are now proposing to extend the remit of the FSA to include all such investment finance. This has in fact been on the cards for quite a while now and I don’t think has come as too much of a surprise following the wave of regulation fever.The impact of such a move shouldn't make too much of a difference from a mortgage advice point of view, (here at Resident Broker we treat buy to let mortgages in a similar way to regulated mortgages anyway), however it may have connotations from a lending point of view - after all if the concept of affordability is passed onto buy to let mortgages then it may tighten the amount lenders are prepared to lend to any one person. Better get those mortgages in quick then!
On the subject of the Financial Services Authority, I also read last week that the FSA will have to demonstrate its value to the National Audit Office next year - the FSA's current budget stands at a cool £437m a year. We have the greatest of respect for our regulatory masters and therefore have no comment to make.
And finally …Kensington has announced it is back in the market. Even though it will be a small re-entry, it is a good sign that the lender has managed to secure funds and is tentatively dipping their proverbial toe in the post-nuclear financial pond. Lets hope more will follow.
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Staying in line with the recent trend of the last few months, buyer interest in houses for sale continues to surpass the available stock. Therefore, continued seller power has witnessed an increase in house prices year on year. However, the southern UK property market may change within the next six months, with sellers and those with property developments advised to take advantage of the current and profitable conditions.
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