Regulations

Important: The Financial Services has been regulating most mortgage sales since 31 October 2004. However, the FSA does not regulate mortgage sales if one or both of the following apply:-

1.   The mortgage is a second charge on your home.   ‘second charge’ means you already have another   loan secured against the home. 2.   Less than 40% of the property on which the loan is   secured is used or will be used as a home by the   borrower or a member of the borrower’s   immediate family.

Only a very few ‘buy-to-let’ mortgages are regulated by the FSA. This means that you may not be able to take complaints about this type of mortgage to the Financial Ombudsman Service. You are also unlikely to be able to seek redress from the Financial Services Compensation Scheme if the firm against which you have a complaint becomes insolvent.

In summary, Buy To Let Mortgages are not generally regulated by the FSA so make sure your buy to let mortgage provider is reputable.