Landlords have been left out of measures announced today designed to support mortgage holders during the cost of living crisis.
The guidance, which has been issued by the Financial Conduct Authority (FCA) updating borrowers' responsibilities to their existing mortgage holders, will only cover '�regulated' products.
This means that buy-to-let mortgages, which are deemed to be '�unregulated products in the UK' will not be covered.
The FCA says it recognises that many mortgage borrowers face higher mortgage payments alongside the rising cost of living.
In summary, the FCA is calling on borrowers to show '�forbearance' towards home owners who may be in trouble financially in the coming months.
'Borrowers may approach lenders needing or wanting to reduce, or smooth increases in, their monthly payments,'� it's advice says.
The omission of landlord mortgages from this guidance is in stark contrast to the depths of Covid during May 2020 when the FCA launched a 'mortgage holiday' scheme that included both landlords and home owners.
Back then LandlordZONE had to confirm with the FCA and the Government that the scheme covered landlords, but this time it has been very clear on its stance on buy-to-let mortgages.
It statement today reveals that a trade organisation, believed to be the NRLA, and a property firm quizzed the FCA on this.
They were told that: 'Our rules'�only apply to regulated mortgages. 'Where an authorised person carries on activity in relation to an unregulated agreement to provide credit which is secured on land, its conduct in relation to compliance with our Principles, including the fair treatment of customers, could be relevant to our assessment of whether it is satisfying the Threshold Conditions."