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RLA Mortgages provides relief to landlords with benefit claimants

RLA
Written by RLA

RLA Mortgages offers relief to landlords who have been denied buy-to-let mortgages from mortgage lenders…

RLA Mortgages offers relief to landlords who have been denied buy-to-let mortgages from mortgage lenders.

Lenders such as the Coventry Building Society have placed heavy restrictions on buy-to-let mortgages and have refused loans to landlords who are renting their properties to benefit claimant tenants, causing great anxiety to those within the private rental sector.

The Residential Landlords’ Association is aware of the problems the restrictions on mortgage loans may cause to PRS market, which may force landlords to remove their properties from the market, and as a consequence, increase homelessness for many vulnerable tenants.

Despite lenders such as BM Solutions and The Mortgage Works, decision to reverse company policy on declining loans to landlords who rent to housing benefit tenants, the indecision around the issue leads the RLA to question whether the change will be a permanent decision.

RLA Mortgages recognises the important role buy-to-let has on meeting housing demand and providing investment within the private rental sector, and strives to provide a service to those landlords wishing to house tenants who receive benefit claimants.

Doug Hall from RLA Mortgages, said: “Buy-to-let landlords need to be careful they do not break lender covenants when it comes to tenants that are in receipt of assistance from the Local Housing Allowance scheme. The majority of lenders do not accept applications for units with LHA tenants, however, we have seen more positive signs from lenders over the last 6 months. Lenders such as The Mortgage Works and BM Solutions now accept LHA tenants”

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RLA

RLA

The Residential Landlords Association (RLA) represents the interests of landlords in the private rented sector (PRS) across England and Wales. With over 23,000 subscribing members, and an additional 16,000 registered guests who engage regularly with the association, we are the leading voice of private landlords. Combined, they manage almost half a million properties.

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