View more on these topics

UK wins ground for BTL mortgages in negotiations over EU directive

Proposals to regulate buy-to-let mortgages in the same way as residential loans are set to be scrapped from the European mortgage directive.

Negotiations for the directive were held in Brussels last week between member states, European commissioners and MEPs.

Conservative MEP and shadow rapporteur Vicky Ford says it was agreed that buy-to-let will not be regulated in the same way as residential mortgages, as initially proposed.

Ford says progress was also made on tough new rules for packaged products, proposed by the European Parliament last year, which would ban all products that require a savings account not directly linked to paying off the mortgage.

Current proposals exempt offset mortgages but would see some deals designed to help first-time buyers banned, such as Lloyds Banking Group’s Lend a Hand range and Barclays’ family springboard mortgages.

Ford says she is confident both buy-to-let and guarantor mortgages will be protected under the directive.

She says: “We are back in a good place on buy-to-let.

“On [packaged] deals, we have not won the argument but it is moving in the right direction. When I explain the product we are trying to protect, it is understood that we need to save them but we need to find the right language. I understand the problems around this because there have been some very opaque practices by certain banks and mortgage lenders, [packaging] insurance products with mortgages for example.”

Association of Mortgage Intermediaries chief executive Robert Sinclair says: “We do not want to ban some of the innovation we have seen in the UK recently, particularly the new Barclays products which are really useful. They would be effectively wiped out under the existing proposals.”

Recommended

BSA wants housing minister on cabinet to boost building

The Building Societies Association is calling for the creation of a minister of state for housing with a “cross-departmental mandate” in an effort to boost house building and the economy. As part of its Budget submission to the Treasury, the trade body is calling for the Government to promote the role of housing minister to […]

Tony Ward MS blog
4

Budget 2013: The birth of a British Fannie Mae?

Well the chancellor seems to have done well in achieving a balance with limited resources available, although I am sure a careful reading of the detail will reveal if this impression is correct or not.

Prestige unveils prime secured loans range

Prestige Finance has launched its first ever prime secured loan range. Rate start from 6.75 per cent up to 70 per cent LTV for both employed and self employed borrowers, with a maximum loan size of £60,000. Loans Warehouse managing director Matt Tristram says: “I have personally worked with the team at Prestige Finance since […]

The curse of long-term cash

Trevor Greetham, Head of Multi Asset at Royal London Asset Management, reveals why clients should be seriously concerned when short-term holdings of cash turn into a long-term investment. There is nothing wrong with holding wealth in the form of cash on a short-term basis. For many people capital stability is important and access to ready cash […]

Newsletter

News and expert analysis straight to your inbox

Sign up