Landlords with buy to let mortgages are finding it hard to offer tenants long-term tenancies because many lenders refuse to support tenancies longer than one year.<\/p>\n
CML Refutes Claims<\/strong> However, the CML refuted such claims, saying that more than half of lenders did not place restrictions on the length of tenancies. It says a study carried out by Shelter found that half of all buy to let lenders were happy for landlords to offer longer tenancy agreements.<\/p>\n \u201cAs Shelter has said, any landlord wanting to offer a longer tenancy should be able to find a suitable lender. And anyone renting should be able to ask their landlord for a longer term, confident that lending conditions aren\u2019t going to be a barrier.\u201d<\/p>\n NLA Says Lenders Could Do More<\/strong> Some landlords complain that restrictive lending conditions are a real barrier, so the advice here is shop around for a suitable product and always check the key facts before you sign.<\/p>\n","protected":false},"excerpt":{"rendered":" Landlords with buy to let mortgages are finding it hard to offer tenants long-term tenancies because many lenders refuse to support tenancies longer than one year. CML Refutes Claims The underlying problem is the Council of Mortgage Lenders and Insurers, … Continue reading
\nThe underlying problem is the Council of Mortgage Lenders and Insurers, which says tenancies lasting more than one year are not permissible. Their reasoning is that if a landlord defaults, the lender would not be able to sell the property<\/a> to recover the debt with a tenant in situ.<\/p>\n
\nChris Norris from the National Landlords Association says lenders could still do more to help. He points out that many landlords are still on historic legacy mortgages<\/a>, which do not have such flexible terms. A number of mortgage products are set to a maximum tenancy of two years, which may not suit tenants looking for a long-term tenancy.<\/p>\n