A significant shift has taken place in the buy-to-let
mortgage market. For a few years, restrictions in the T&Cs of buy-to-let
loans have been pointed to as one of the big barriers to increasing the availability
of longer, family friendly tenancies. Until recently, most buy-to-let lenders
required a standard Assured Shorthold Tenancy of 6 or 12 months. If a landlord
offered longer contracts they would have been breaching the conditions of their
mortgage. With the majority (50-55%) of landlords relying on a mortgage, for
many families who had to privately rent the prospect of getting a longer
tenancy was a non-starter. But all of that has now changed. The Council of
Mortgage Lenders have confirmed that lenders responsible for more than half of
England’s buy-to-let loan book now allow contracts of at least 24 months. Most
of these allow for up to three years; some have no maximum tenancy period at
all. Read more on the Shelter blog.
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