Tenancy contracts can be as long as three years for landlords with mortgages from Nationwide.
- The Mortgage Works will enable landlords to offer tenancy contracts of up to three years
- This is extended from the typical contract of 12 months
- This will provide both landlords and tenants with more security, helping to stabilise the rental market
Landlords will be able to offer tenancy contracts of up to three years, as Nationwide announces it is to enable borrowers to offer long-term agreements.
The Mortgage Works (TMW), which is part of Nationwide Building Society Group, will extend the contract terms from 12 months – the typical length of time most lenders stipulate in their mortgage conditions.
TMW has made this change to allow borrowers to have greater stability with their tenancy contracts, as it binds residents to a longer agreement, enabling them to have security that they will earn money for up to 36 months.
Campbell Robb, Chief Executive of Shelter, said: “With two-thirds of renters saying they would like the option of staying in their home long-term, it’s encouraging that Nationwide is leading the mortgage industry to help make renting more stable.”
Divisional Director of Mortgages at Nationwide Group Richard Napier added that it wants its buy-to-let customers to “meet the changing needs of the market”.
Last Friday (June 21st), TMW announced its lowest BTL fixed rate at 2.49% for two years with a loan-to-value of 60%. This is to help landlords enhance their portfolio and boost the rental market in the UK.