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Six out of 10 landlords are worried about regulation that may soon be coming to buy-to-let mortgages, but there is nothing to fear – with the help of a regulated buy-to-let professional it should only make your experience safer.

According to Paragon Mortgages, regulation tops private rented sector landlords’ list of concerns for 2010 – 58% of landlords said that they were worried about the level of regulation required to run their business over the coming year.

The Financial Services Authority recently revealed that it was planning to regulate buy-to-let mortgage lending as it does with other forms of home loans. Also, the Government plans to create a register of all landlords to keep an eye on the sector.

On top of this, Paragon estimates that landlords operating in the private rented sector are already governed by an estimated 50 Acts of Parliament and 70 sets of regulations governing the sector and it says more could be on the way.

John Heron, managing director of Paragon Mortgages says: "Landlords have to comply with a myriad of regulations, which seem to be regularly added to or amended by the Government. Several new statutes have been introduced in recent years, including Energy Performance Certificates, tenancy deposit protection and Houses in Multiple Occupation licensing. Employing a good managing agent can help but individual landlords have ultimate responsibility to ensure that they are complying with the necessary rules and regulations."

No landlord wants the added headache of more regulation, but it is now a fact of life and they must comply with any new rules. But there is no need to fear buy-to-let regulation – by using a fully regulated buy-to-let mortgage adviser you will be able to talk through buy-to-let rules with someone who has spent many years working with Government regulation and legislation. The professional adviser will tell you exactly what you have to do to comply with rules but most importantly, the adviser and the buy-to-let lender will also have to comply with rules that benefit you.

Because with regulation, and by using a fully regulated broker, you can be sure tat you are getting the fairest deal. You can be sure that you will always have recourse if something goes wrong and you can be sure that if you work hard, your loan will work hard for you also.

SOURCE: Paragon, 12/01/10

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