Buy to let proposals Thursday, 26th November 2009

According to new proposals published by the Treasury today, the Government is proposing the expansion of the FSA's remit to include the regulation of buy-to-let and second-charge mortgages, The consultation document also includes possible legislation to protect borrowers whose mortgages are sold onto third parties.

"Since the onset of the global financial crisis, the Government has worked hard to ensure mortgage borrowers are treated fairly by their banks. Our focus has been to do all we can to make sure people can stay in their homes and to limit repossessions as much as possible," said Exchequer secretary Sarah McCarthy-Fry.

“But we are aware that this crisis has raised issues around the world about the regulation of the mortgage market. We are determined to reform the system for the future, to offer both stronger protection for consumers and greater stability in the housing market.”

Along with a series of proposals to reform and strengthen financial regulation, and protect and support consumers, the consultation sets out the details of the proposed legislation and will close on 15 February 2010 and any final measures will be implemented through secondary legislation. It builds on announcements made in Reforming financial markets, which was published by HM Treasury in July of this year and set out the Government’s analysis of the causes of the financial crisis.

These proposals will put in place by way of the Financial Services Bill that is currently being debated in Parliament.