Santander review 'misunderstood' buy-to-let clause that demands landlords hike rents

Former_MSE_Lucinda · 3 February 2017 at 12:25PM

Santander has confirmed it will review a "misunderstood" clause in its buy-to-let mortgage terms, which states landlords must increase rents by "as much as reasonably can be achieved"....

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'Santander to review 'misunderstood' buy-to-let clause that demands landlords hike rents'

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newsgroup_monkey · 3 February 2017 at 4:27PM

This is often a completely dumb way of doing things.
My folks keep their rental income at a rate that matches their BTL mortgage outgoings. Because their mortgages are fairly old and therefore much smaller than the equivalent would be, their rent is relatively cheap. Probably lower than market rates.

However, when they have reliable tenants who have been there in excess of 15 years (and a few others have been there in excess of 5 years), then they're clearly doing something right.

If you have a good tenant, who is reliable and looks after your place, then it's a good idea to try and keep the rents at a reasonable rate whilst ensuring you are financially fully covered.

What Santander are trying to do is to encourage the "Fly-By-Night" moneygrabbers. Anyone who is serious about the rental market knows that BTL is a two-way street. Shortly, the Letting Agents are about to be forced to do likewise!