Buy to Let Mortgages
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From: pat neary
23 August 2010
Dear Financial Services Authority,
Did a meeting take place between the Directors of B&B and the FSA
and Mr Alistair Darling on or abouts Aug -oct 2009
Was it stated Mr Darling wanted the mortgage book cleared ASAP ,
FSA REGULATORY BODY,
Why is it failing in the BUY TO LET Property Market?
No absolute discretion, but it can be invoked provided it can
satisfy the issue of materiality.
The UK House of Lords has refused to imply a term requiring the
Lender to act reasonably in determining a material adverse change
and instead there is an obligation to act in good faith (see
Concorde Trust v Law Debenture Trust Corporation (2005) 1 WLR
1591). A breach of an obligation of good faith would require a
party to show that there was dishonesty or an improper motive. To
some extent, however, the notion of good faith imports some element
of materiality and substance to the change in question. A lender is
therefore not necessarily obliged to act reasonably in the sense
that every other lender would take the same view but it must be
able to stand over the decision from its own perspective looking at
the facility itself, to its particular circumstances and the
decision to terminate. If a lender were to seize on some relatively
minor or trivial issue as a basis for termination, or took a global
view which meant it did not look at the particular circumstances at
all, the point could certainly be made against it.
1. The above quote is ample enough reason for the FSA to now step
in and investigate Mortgage Express
2. Are there regulated Buy to let mortgages before or after 31 Oct
Does county court have any jurisdiction over disputes related to
BTL mortgages, regulated or not? I believe it is an FSA/FOS matter.
A reference to any legislation would be appreciated, I Have written
to the FSA on so many occasions, I do not have any such vested
interest in any BTL or any sort of rental company, my concerns are
the way in which Mortgage Company can just step in without any sort
of mediation and without any care and without any COURT ACTIONS
,ARE THEY ABOVE THE LAW ,they seem not to care whether or not they
are causing immense harm to the Landlord’s these are people who
take such risks with what little investments they have had from
possibly redundancies or cashed in lifetime pensions .
3. I have seen personally the ruthless and conniving attitude of
some of these so called receivers, they are without compassion they
are out for a quick buck , since I pointed out to the FSA the
serious and questionable way that a particular company Mortgage
Express have been acting, I have asked the FSA can you instigate an
investigation ,A Finance Director from Mortgage Express left the
company and was immediately employed as a Director of TEMPLETONs
LLP who are one of these so called receiver companies, don’t you
see what is happening this particular director who was in control
of finance for MX has since taken control of properties he once
promised the Landlords he would accept their mediated agreement,
this never happened and MX deny such negotiations took place can
you investigate ?
4. The hike in the interest rates by MX has created severe problems
and the BTL have tried in vain to re-negotiate their terms to no
avail ,MX have flatly refused , I spoke with a senior employee from
MX and he said in confidence that it was a directive from the
GOVERNMENT that they clear the mortgage book ,I suspect there may
be more truth to this than meets the eye, I also suspect the FSA
involvement is not exactly up front about this situation either ,
why do I say this, because of a certain meeting that took place
between MR ALISTAIR DARLING THE FSA AND BRADFORD AND BINGLEY AND MX
, I have asked for this Data and to date no information has been
5. What actions can the FSA take ? as you you are aware of this and
what is happening,
What actions have you taken so far concerning MX
6. RECEIVERS and their duties ,they have only one duty as far as I
can see and that seems to be to liquidate as many properties as
possible, I have seen a BTL Landlord who sadly fell behind with one
single property by two months rentals , but it was due to all the
extra interest rates that were piled on and this created an
imbalance, MX appointed the receiver even before the Landlord was
aware of this happening but within two weeks he had lost 12 tenants
because the receivers informed the tenants that the Landlord had
gone Bust…Surely this is an abuse of practice these people are
unregulated and just do not care Are you going to Regulate theses
companies..the sooner they liquidate the sooner they get paid ,
they are also unresponsive and pay no attention to the Landlords,
in fact they are Warning the Landlords if they create any problems
they will liquidate the entire portfolio, can’t you see what is
going on here someone who has 80 properties being Liquidated for
speaking out , this is a terrible situation and it is also an
desperate situation THE FSA have a right to step in and regulate
these people they are nothing short of being glorified crooks and
it does not bear well with the FSA for allowing this to continue,
Can you have a moratorium and call a halt to all these scandalous
practices, it is neither ethical or lawful ,How many more Directors
are going to profit on the back of the Governments Mandate and the
FSA approval to continue in this manner
16 September 2010
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Dear Mr Neary
Thank you for your email dated 23 August 2010 addressed to the Freedom of Information (FOI) team. This has been passed to the Customer Contact Centre (CCC) to respond to as the FOI team believe that this does not fall under the remit of the Freedom of Information Act. The CCC is responding as we respond to all enquiries from consumers, consumer bodies, authorised and professional firms.
Firstly I would like to thank you for taking the time to prepare and send us your enquiry. In my response I hope to be able to clarify the role of the Financial Services Authority (FSA) and provide useful information and guidance on the issues that you have raised. I propose to answer your questions in the order that you have outlined in your email:
1. I understand that you would like the FSA to confirm that we are investigating Mortgage Express. I can confirm that it is the policy of the FSA not to disclose such information. As an impartial regulator, it would be prejudicial against the firms we regulate to publicly confirm details of any specific investigations - particularly if an FSA investigation were ongoing or a related legal action was taking place. This policy also protects the integrity of our investigative processes. I feel that it is also important to confirm that the FSA is an active supervisor of financial regulations, and therefore we assess firms on a regular and ongoing basis as part of our work.
Our approach is underpinned by the principle that it is neither possible nor desirable to write a rule to cover every specific situation or need for decision that a regulated firm might encounter. Instead, we focus on the Principles set out in the Act. These set out in more general terms the types of behaviour that we expect of firms and individuals (for example ¿ 'A firm must conduct its business with due skill, care and diligence'). We monitor how firms deal with consumers in line with our rules and Principles and we can take action against a firm to ensure that a firm stops behaving in a way that is harming consumers.
2. Mortgages were not regulated until 31 October 2004 therefore mortgages taken out before this date will not fall with in FSA jurisdiction. In addition for a mortgage to be regulated it needs to comply with the conditions set out in the Perimeter Guidance Manual (PERG) section of the FSA Handbook, specifically Perg 4.4. For your convenience I have provided a link to this below:
Regarding the issue of County Court jurisdiction and regulated mortgage contracts. The County Court does have jurisdiction over some aspects of mortgages. For example for any person seeking to obtain an order for possession of a property they will need to follow due process, which includes the matter being heard by a court. It is then for the judge to decide whether repossession can occur, and to issue the order. For further guidance I suggest that you seek expert legal advice.
3.Thank you for the information that you have provided regarding Templton LLP. Unfortunately, the work of receivers falls outside of our remit, rather, I suggest that you contact the Insolvency Service direct to bring your concerns to their attention. You can contact them at:
Thank you for the information regarding the activities of Mortgage Express this has been passed to the appropriate department for their consideration. We continue to welcome information, and will consider any information you may wish to send in addition to that already received in light of our responsibilities. However, please note as previously stated we are not able to disclose how we use the information.
4.Having spoken with the FOI team they have confirmed that they do not have a record of your earlier request. We are of course happy to look into any request that we receive, however, we would require further details of the precise nature of the request. Once received we will consider this in line with our responsibilities under the Freedom of Information Act.
5. The FSA's Enforcement Division investigates when firms breach our rules or the provisions of the Financial Services and Markets Act 2000 (FSMA). FSMA allows us to take action such as:
* withdrawing a firm's authorisation;
* disciplining authorised firms and people approved by the FSA to work in those firms;
* imposing penalties for market abuse;
* applying to the Court for injunction and restitution orders; and
* prosecuting various offences.
FSMA also gives us powers to take action under the insider dealing provisions of the Criminal Justice Act 1993 and the Money Laundering Regulations 2007. FSMA gives us the tools we need to do the job of enforcement - including the power to interview people and require them to hand over documents. It also sets out the circumstances when we are allowed to use those powers. For further information about our enforcement powers, please visit our website at:
6. At this juncture there are no plans for the FSA to regulate the receiver market. Whether or not the FSA does regulate this market is a decision for Government.
I realise that this may not be the response that you were hoping for, however, I hope that I have been able to clarify the position of the FSA in relation to this matter and I trust that it is of assistance. If you require any further information or guidance, please do not hesitate to contact the Customer Contact Centre on 0845 606 9966.
Edward Bergson (Mr)
Customer Contact Centre
Financial Services Authority
Consumer Helpline: 0845 606 1234 (call rates may vary)
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From: IFF Research on behalf of the FSA
4 October 2010
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