Buy to let mortgages are likely to avoid strict European regulation.
UK landlords and lenders were recently offered hope that the buy to let mortgage sector could escape strict European mortgage market regulation.
If the UK were subjected to newly proposed European mortgage regulations it is likely that red tape could negatively impact buy to let lending.
However after a recent vote it is highly possible that UK buy to let lending will be made exempt from any new rules.
The European Economic and Monetary Affairs committee recently voted and the new draft proposal suggests buy to let mortgages in the UK are to be exempt from the new Directive.
Should this vote have gone the over way it could have endangered market competitiveness. While the investment mortgage sectors looks like it will avoid strict European regulation, the residential sector will not.
For lenders strict mortgage market regulation is costly, if the new proposal was to affect buy to let, then rates would mostly likely increase. Higher mortgage rates mean more expensive borrowing for landlords, which in turn could lead to them increasing rent levels to cover their costs. Ultimately rental tenents could be the ones impacted the most.
Currently the residential property market is slow, whereas the buy to let market remains buoyant, any changes which negatively impact this sector could adversely affect housing market recovery.
If you are looking for a competitive buy to let mortgage offer you are advised to call independent 'whole of market' broker Deal Direct for a quote.
Call an adviser for the cheapest rates on offer.
