Unregulated Mortgage

lemontree

Being retired I can only obtain a Remortgage on a second property I own via a Mortgage Broker. The rate and conditions are acceptable but I am concerned that the Mortgage is unregulated. Could anyone please explain further?

Robert_Sterling_3

This Might Help

lemontree

Thank you for link. Does the fact that the Mortgage is through the Royal Bank of Scotland make it any safer?

dunstonh

Retirement is not a block to lending money. Affordability is. That is the only concern in that area.

Can you give any more information as to why you think the mortgage is unregulated?

herbiesjp

Is the mortgage a BTL?

lemontree

This is a Buy to letRMBS Tracker Remortgage.
"This is an unregulated product and as such is not subject to FSA regulations"
I have funds to pay off mortgage if need be.
RBS could not give this mortgage without early redemption fees and advised us to go back to Broker as we intend to sell this property within 2 years(the one we want to buy)
Thank you for your help.

payless

Very basically the FSA now regulates residental mortgages, but not commercial loans, and at present most buy to lets come under latter.

If you are happy with arrangements , then can't see anything too wrong, although being unregulated means you will have less recourse against the adviser if you are latter unhappy with the product / think it was not most suitable


http://www.fsa.gov.uk/consumer/pdfs/buy_to_let.pdf

should answer most of you questions

lemontree

dunstonh wrote:

Retirement is not a block to lending money. Affordability is. That is the only concern in that area.

Can you give any more information as to why you think the mortgage is unregulated?

Today I have been rejected for a £50,000 buy to let Remortgage on a property I own valued at £850000 one of two properties owned and rented out of same value. (not my home) I have an income of 12,000 per year and savings of 25,000.
The Mortgage was to be an Interest only mortgage.
The reason given by the Broker was my age!

Fairdo_2

Your broker has not done their job properly, as there should be deals out there for you if age was the only factor.

dunstonh

Fairdo wrote:

Your broker has not done their job properly, as there should be deals out there for you if age was the only factor.

Maybe its a tied mortgage advisor or panel limited panel. Age certainly shouldnt be a reason to decline as Fairdo says. There would need to be other factors.

Fairdo_2

dunstonh wrote:

Maybe its a tied mortgage advisor or panel limited panel. Age certainly shouldnt be a reason to decline as Fairdo says. There would need to be other factors.

Good point DD

I keep thinking "Mortgage Broker" should mean more than tied broker or small panel.