The government is poised to launch a consultation document which is expected to advocate further restrictions on buy-to-let mortgage lending.
The formal consultation is expected to be launched within the next 72 hours although one prominent buy-to-let expert, Ray Boulger of independent mortgage broker John Charcol, has already been quoted as branding the exercise “a farce” because so much advance information has already been in the public domain.
Landlord Today has already reported that some lenders have voluntarily introduced stricter lending criteria, which is expected to become the norm following the consultation.
“The Bank of England currently has no control over lending in the BTL sector, but the Chancellor will soon hand powers over to the Bank's Financial Policy Committee. The consultation is a farce,” Boulger has told the Daily Mail.
Chancellor George Osborne first announced in October that a consultation would take place; a final decision on which powers will be given to the Bank of England will be made next year.