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ARLA clarifies definition of B2L

While clarifying the definition of buy-to-let eight years after its inception, Robert Jordan, president of ARLA, says it is a private enterprise that fulfils the social need for choice in housing.

He adds: “It is about fair returns and quality accommodation, not get-rich-quick schemes.”

John Heron, chairman of the ARLA buy-to-let panel and managing director of Paragon Mortgages, regards buy-to-let as a long-term enterprise.

He says: “Property speculators buy and sell quickly, are price inflation-driven, have no real interest in tenants and should not be given access to buy-to-let mortgages.”

ARLA says the future is promising for buy-to-let as it has strong defensive qualities in a soft housing market with the need for rented properties expanding and the number of households set to outstrip the number of properties available.

Responding to suggestions that some parts of regulation impinge on buy-to-let and that lenders should have appropriate cover in place, Michael Bolton, director of mortgages at BM Solutions and an ARLA panel member, says: “There are concerns over the ambiguity of buy-to-let regarding regulation. The general consensus is that it should be regulated. BMS treats all buy-to-let cases as if the area is covered by regulation.”


Infinity to launch compliant KFI this week

From September 30 the KFI facility will be available on Infinet, the firm&#39s new online application system, although it will not be allowed to use the KFI and Financial Services Authority branding until M-Day, October 31. Infinity, a sub-prime lender launched only nine months ago, has been testing the KFIs, developed with technology support from […]

Scot Prov gives DMD assistance

From October 9 2004 intermediaries selling protection will have to comply with the DMD as part of Financial Services Authority regulation of protection and general insurance. The DMD means that for sales that take place in any form other than face-to-face, brokers should ensure clients have a copy of all terms and conditions before the […]

Exclusive Connections makes two appointments

Lana Harris joins as mortgage systems administrator. She will be responsible for implementing and managing the in house packaging system, ECLipse. ECLipse forms the link between local offices and lenders. This state of the art system automatically checks the customers&#39 application and circumstances against the lenders basic product and lending criteria. Brokers will continue to […]

A View From The floor

Housing, debt and advice were all on the Liberal Democrats&#39 agenda at the party&#39s annual conference last week. The party&#39s shadow Chancellor Vincent Cable used his keynote conference address to attack the government, the Conservatives and to some extent the financial sector for fuelling what he called the debt bubble. “An orgy of debt-financed household […]


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