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Mortgage Works allows landlords to offer longer tenancies

The Mortgage Works (TMW) is the first mainstream buy to let lender which is offering its borrowers the option of allowing their tenants to sign a longer term contract.

Lenders have restricted buy to let borrowers by requiring them to offer their tenants a maximum contract of 12 months, TMW however is giving customers the choice to offer longer term lets of up to three years.

Henry Jordan, TMW’s Managing Director, said: “The private rental sector has grown and changed phenomenally over the last 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 rent rather than own. Families are more likely to want longer term tenancies, for example, to ensure continuity of schooling, so giving our customers this option will bring greater stability to this growing market segment.”

Longer term tenancies are the latest in a series of initiatives by TMW aimed at supporting the growing and changing private rental sector in February TMW relaxed its criteria with respect to tenants in receipt of housing benefit, again recognising the needs of a substantial part of the market.

Campbell Robb, Shelter’s CEO, said: "This news is very welcome. More and more families are now renting their homes, but all too often short tenancies mean changing schools, leaving friends behind and growing up with constant upheaval.

"With two-thirds of renters saying they would like the option of staying in their home long-term, its encouraging that Nationwide (TMW) is leading the mortgage industry to help make renting more stable. We look forward to other mortgage lenders following suit."

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