If you are a landlord insurance client with a buy to let mortgage you need to be aware of EU plans to curtail this type of lending. The Residential Landlords Association has spoken out against a proposed EU directive that they believe would seriously damage the private rented sector. The draft directive is aimed at curbing irresponsible lending on mortgages following property booms and busts in countries like Spain and Ireland. If it came into force lenders would not be able to take account of rental income when assessing the ability of the applicant to afford the mortgage repayments. The proposal is aimed at “consumers” but it could catch small landlords with just a few properties.

Alan Ward, the chairman of the RLA said “This directive is nothing short of a disaster for housing in the UK. The RLA is working hard to have it aborted. It would effectively kill off buy to let mortgages”.

If you need landlord insurance visit www.click4quote.com insurance