Brokers may face litigation over BTL deals

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Solicitor Moore Blatch has slammed the FSA for ignoring its calls for investment warnings on all buy-to-let mortgages, warning brokers may now face the threat of litigation as a result.

The firm first raised its concerns a year ago, and called for lenders, brokers and the FSA to make investment warnings mandatory. It highlighted that with arrears and repossessions within the sector increasing at a high rate, the scale of the problem calls for immediate regulation. It warns some brokers may now face the threat of litigation if any buy-to-let investor can support a claim the broker provided advice that went further than purely that of providing a mortgage. Litigation lawyers could have a strong case against a broker if they recommended buying properties as an investment ...

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