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

edited 3 February 2017 at 12:30PM in Mortgages & Endowments
2 replies 1.2K views
Former_MSE_LucindaFormer_MSE_Lucinda Former MSE
46 Posts
edited 3 February 2017 at 12:30PM in Mortgages & Endowments
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_monkeynewsgroup_monkey Forumite
    849 Posts
    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!
    The smaller the monkey the more it looks like it would kill you at the first given opportunity.
  • jk0jk0 Forumite
    3.5K Posts
    Eighth Anniversary 1,000 Posts Name Dropper
    I echo previous comment.

    I don't think anyone 'misunderstood' the clause though, did they? :)
    More likely they've realised it looks mean spirited, and they now want to claim they didn't mean it.
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