{"id":691,"date":"2012-12-10T14:14:27","date_gmt":"2012-12-10T14:14:27","guid":{"rendered":"http:\/\/www.propertyportfoliosoftware.co.uk\/blog\/?p=691"},"modified":"2012-12-10T14:14:27","modified_gmt":"2012-12-10T14:14:27","slug":"landlord-lenders-block-tenants-on-benefits","status":"publish","type":"post","link":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/landlord-lenders-block-tenants-on-benefits.html","title":{"rendered":"Landlord Lenders Block Tenants on Benefits"},"content":{"rendered":"<p>As economic conditions worsen and the country slips ever further into a triple dip recession, the number of <a href=\"http:\/\/www.propertyportfoliosoftware.co.uk\/SoftwareDemos\/Advanced_Rent\/\">tenants claiming benefits is likely to increase<\/a>. Many landlords are reluctant to let properties to tenants claiming benefits because they view them as more likely to default on their rent payments (and with the government announcing a cap on benefits payments that will mean tenants are forced to make up the shortfall from their own pockets, this is not an unlikely prediction).<\/p>\n<p><strong>Why don\u2019t mortgage lenders want landlords letting to benefits tenants?<\/strong><\/p>\n<p>As I have just pointed out, tenants in receipt of benefits are considered a high risk, which is why a large number of lenders include a restriction in their loan offer documents to prevent landlords letting a property to a benefits tenant.<\/p>\n<p>The restriction on benefits tenants has been in place for a number of years, but as more and more tenants are forced into claiming Housing Benefit\u2014or the new \u2018<a href=\"http:\/\/www.propertyportfoliosoftware.co.uk\/video.lha_tenants.html#watch-demo-anchor\">Universal Credit<\/a>\u2019 as it will soon become\u2014the block on this type of tenant is going to affect an awful lot of landlords whose properties are financed by a loan.<\/p>\n<p><strong>Will the restriction be lifted at any point in the future?<\/strong><\/p>\n<p>Unlikely, although lenders may have to be a bit more lenient if the percentage of tenants claiming benefits dramatically increases in the next few years. Mortgage lenders use a number of criteria to work out risk profiles and these are constantly evolving, but if lenders don\u2019t change their policies, many landlords may struggle to fill their mortgaged properties.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>As economic conditions worsen and the country slips ever further into a triple dip recession, the number of tenants claiming benefits is likely to increase. Many landlords are reluctant to let properties to tenants claiming benefits because they view them &hellip; <a href=\"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/landlord-lenders-block-tenants-on-benefits.html\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-691","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts\/691","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=691"}],"version-history":[{"count":1,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts\/691\/revisions"}],"predecessor-version":[{"id":692,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/posts\/691\/revisions\/692"}],"wp:attachment":[{"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=691"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=691"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.propertyportfoliosoftware.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=691"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}