Tenants whose landlords have conventional mortgages are being supported by the Council of Mortgage Lenders (CML), it has been revealed.

According to the CML, some tenants rent property where a conventional residential mortgage has been purchased.

Landlords may have chosen this option instead of a buy-to-let loan, which means that the tenants in the former properties are not authorised.

A bill is being "rushed"through parliament to try and better protect such tenants, which the CML supports, it revealed today (January 19th).

However, the organisation noted that it is concerned that the current bill might be used as a "rogue's charter"to delay possession.

The answer to the problem is one that does not result in consequences that are expensive or unintended, it explained.

Further comments may be made at the end of the month, when the CML will formally respond to the mortgage market review by the Financial Services Authority.

Housingrepossessions.co.uk claims that buy-to-let mortgages can be more expensive than conventional ones and therefore some landlords use this option to maximise profits.

But tenants have no official right to stay in a property that a mortgage lender repossesses if the landlord had an ordinary mortgage.

Written by John WeeksADNFCR-2002-ID-19565825-ADNFCR

Related posts:

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  2. CML reports ‘positive mortgage industry news’
  3. FSA mortgage lending proposals under scrutiny
  4. CML reports buy-to-let lending boost
  5. Govt financial measures essential, says the CML

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