Following the announcement by Communities Secretary, Mr Eric Pickles last week buy-to-let mortgage providers in the UK are now faced with a rush to renegotiate their terms.
Last Tuesday (2nd October) Mr Pickles announced that families who were living in the private rented sector should be able to benefit from longer tenancies of between two to five years giving them a greater feel of security and is set to introduce this new measure soon.
However, many buy-to-let providers currently allow a maximum contract length of one year to 18 months; this new measure would be in breach of many landlords’ mortgage conditions.
Angela Tymms, Senior Negotiator at Martin & Co Crawley said “It is believed this could now lead to a number of negotiations between investors and their mortgage providers, as investors ensure they are not breaching the new tenants’ charter laid out by Mr Pickles”.
If you are an investor and have any concerns about how these new measures may affect you please call Ciaran or Angela today on 01293 735000.