Mortgage Lender’s Landlord Restrictions On Council Tenants Could Soon Be Relaxed

09 December 2012 Categories: News

Mortgage Lender’s Landlord Restrictions On Council Tenants Could Soon Be Relaxed

Two major buy to let mortgage lenders are currently reassessing the restrictions they put on landlords regarding tenants claiming benefits after being told that their existing policies leave vulnerable tenants out in the cold. Both Accord Mortgages and BM Solutions currently restrict who their buy to let mortgage holders can rent their properties to, leaving benefit claimants with no chance of securing a large number of private rental properties.

Property experts though have recently raised concerns about the ‘no claimants’ policies and as a result Accord Mortgages and BM Solutions are both reassessing the criteria of their mortgages.

A spokesperson for BM Solutions commented recently, “Through our Buy-to-let criteria we are actively managing the risk profile of this type of lending. Historically this type of tenant has been of a higher risk, and this is reflected in our criteria. We are currently reviewing this aspect of our lending criteria and will communicate the outcome of this review when appropriate.”

While national account manager for the buy to let division of Accord Mortgages, Chris Maggs, said “Our range of mortgages and lending policy is continually evolving and we would not rule out changes in the future to satisfy requirements of the private rental sector – providing applicants meet our fundamental requirements of being experienced buy-to-let borrowers with a good financial track record.”

Whether the two lenders will make the changes remains to be seen.