UK buy-to-let mortgage market escapes EC's credit directive.
The UK buy-to-let mortgage sector has escaped being potentially damaged by the European Commission’s mortgage directive
The committee charged with reviewing the EC's mortgage directive, has ruled that UK buy-to-let mortgage offers can be excluded from the proposed rules.
The original proposal put forward, stated that all European Union members needed to provide would-be mortgage holders with a European standardised mortgage information sheet outlining mortgage offers.
There was concern that the presently flourishing UK buy to let market could be stifled by the new rules stating lenders must factor in mortgage affordability when considering a loan application.
It was successfully argued that buy to let applications should not conform to this rule as they are very different, as landlords in the majority of cases use the rental income generated by a property to pay any monthly mortgage repayments.
A spokesperson for the Council of Mortgage Lenders commented saying that it was pleased to see that various long standing issues it had been lobbying the EU parliament on, have now reached a positive conclusion.
However the process is not finalised and the proposed amendments must now be voted on before the European Council can decide its position.
If you are looking for a competitive UK buy-to-let mortgage to enable you to take advantage of this flourishing sector of the market contact Deal Direct.
Deal Direct can source you a competitive mortgage offer.
