Sunday, February 25, 2024

Two-thirds of buy-to-let lenders block housing benefit tenants

Some 66% of lenders representing approximately 90% of the buy-to-let market do not allow properties to be rented out to those claiming housing benefit, according to new research.

The survey carried out by the Residential Landlords Association’s (RLA) mortgage consultant 3mc featured some of the UK’s largest buy-to-let mortgage lenders, including TSB, Virgin and NatWest.

“Some of the reasons given for not lending to those renting to claimants include concerns about rent not being paid and historic data which calculates the risk of tenants falling into arrears or facing repossession,” said Doug Hall, director at 3mc.

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