View more on these topics

The Mortgage Works increases max tenancy limit to 36 months

Nationwide Building Society’s buy-to-let arm has trebled the maximum length of tenancy it allows landlords to offer to 36 months.


Previously, The Mortgage Works would only allow assured shorthold tenancy agreements of up to twelve months.

Nearly all other mainstream buy-to-let lenders restrict landlords to offering AST’s of up to 12 months, except Woolwich, which requires an AST of a minimum of six months and maximum of 24 months.

Lettings experts have been calling for longer term agreements for some time, as the private rented sector grows.

TMW managing director Henry Jordan says: “According to Shelter, one in five families now rents rather than owns. Families are more likely to want longer term tenancies to, for example, ensure continuity of schools, so giving our customers this option will bring greater stability to this growing market segment.”

The Buy to Let Business managing director Ying Tan says: “Any relaxation in criteria is good news and this will be particularly good for those looking for longer-term security of tenure.”

London & Country associate director of communications David Hollingworth says: “This is the sort of security of tenure ‘generation rent’ is looking for. If other lenders follow then we could see longer tenancy agreements become more commonplace.”

In March, TMW U-turned on its decision to stop lending to landlords who have tenants on housing benefits, days after Mortgage Strategy broke the news.





In My Opinion: In search of the middle ground

At this time of sentiment against banks that are too big to fail, there is a shift in sentiment away from the market being dominated by a few big banks and building societies. The Financial Conduct Authority has a clear competition mandate – however capital adequacy rules, amongst others, mean that new entrants find it […]

Report calls on FCA to downsize

The parliamentary commission on banking standards says the Financial Conduct Authority must cut costs and become “smaller and more focused”. In its final report, published last week, the commission says rising costs as a result of the changeover from the FSA to the FCA and Prudential Regulation Authority should only be transitional. The FCA and […]

Lending Zone: Mortgages face the stress test

Lenders must take a far more robust approach to assessing a borrower’s ability to meet repay-ments, says Jonathan Westley, MD of Experian’s UK and Ireland consumer information business

Borrowers ‘can’t work out costs of mortgages’

  A study by consumer group Which? of 1,000 homeowners and homebuyers has found that 99.5 per cent of them were unable to work out the total cost of mortgage deals. It asked interviewees to rank five two-year fixed-rate mortgages in order of total cost over the two years, including monthly repayment charges and arrangement […]

India Election Update

What a difference six months makes. Speaking in September last year, we had warned of ‘excessive pessimism’ afflicting the market’s perception of India. Since then, responsible central bank policy from the Reserve Bank of India (RBI), alongside improving global growth, has meant that India’s macro environment is strengthening quickly. The current account deficit has shrunk, inflation is falling and the government has embarked on a heavy dose of much needed fiscal consolidation. As a result, the rupee has been one of the strongest global currencies this year while the market has touched all-time highs, rallying by more than 20 per cent (GBP) since September. This begs the question: are we now in a period of ‘irrational exuberance’? Not yet.


News and expert analysis straight to your inbox

Sign up