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A repossession specialist has called on the Government and the financial regulator to add investment warnings to buy to let mortgages.

Moore Blatch says it has been calling on the industry to add warnings for a year – it says Council of Mortgage Lenders arrears figures approaching 2% and repossessions figures now standing at 0.22% prove the need for action.

The repossession expert warns that buy to let mortgages can be seen as heavily geared investment vehicles and, therefore need appropriate warnings.

If you have bought a buy to let mortgage, your broker will have been clear of the dangers that come with property investment, but Moore Blatch says more needs to be understood.

In the absence of regulation, the firm is advising that all buy to let mortgages come with an appropriate investment style warning.

Paul Walshe, head of lender services at Moore Blatch, says: “Action needs to be taken urgently to protect the interests of everyone. We urge the Financial Services Authority to ensure that buy to let investment is subject to the same consumer warnings as other forms of investment, particularly at this time when many amateur investors are facing substantial losses, and many can argue that they were not warned.”

Buy to let is an investment, and it does come with all the inherent dangers that any investment comes with. But it’s a safe investment, and one that has stood millions of people in good stead.

To keep up with the latest News and comment on the UK buy to let market visit the Buy to Let Mortgage Blog