The Mortgage Works (TMW), part of the Nationwide Building Society Group, is to become the first mainstream buy-to-let lender to enable its borrowers to offer their tenants the option of longer term contracts.
Most lenders restrict buy-to-let borrowers by requiring them to offer their tenants a maximum contract of 12 months. By allowing customers the choice to offer longer term lets of up to three years TMW says its new initiative will not only bring greater flexibility to the private rental sector in the UK, but will have the potential to provide more stability to the increasing number of people who rent homes privately.
In addition to facilitating longer term tenancies, the Nationwide says it is set to launch a comprehensive new online independent Landlords’ Guide and the Nationwide Foundation has launched its new strategy aimed at creating decent, affordable housing for people in need.
Richard Napier, divisional director of mortgages at Nationwide Group, said: “The private rental sector has grown and changed phenomenally over the past few years, with rising numbers of families looking to rent in particular. We want our buy to let customers to be in a position to be able to meet the changing needs of the market.
“According to Shelter, one in five families now rents rather than owns, so giving the option of longer-term tenancies will bring greater stability to renters.
“To help fulfil Nationwide’s pledge of helping 750,000 people into a home of their own over five years, we are developing innovative solutions to housing problems, and this development is another indication of that commitment.”
During July, the Nationwide Group will launch the latest in its range of independent and impartial guides, this time for landlords. The Landlords’ Guide clearly outlines what is expected of landlords on matters ranging from tenancy agreements through to safety checks. The guide, which will be hosted at www.themortgageworks.co.uk, will be available to download onto tablets and smart phones.