Santander tells buy-to-let landlords to 'raise rents by the maximum'
"Santander is facing fury from tenants and housing groups for a clause in its buy-to-let mortgage contracts requiring landlords to raise rents by “as much as can be reasonably achieved”.
The wording has been buried in Santander's contracts since 2011. It has come to light only now, however, as buy-to-let investors face an unprecedented squeeze on their incomes due to tax changes applying from April.
Many borrowers are scrutinising mortgage documentation to assess their likely position if they cannot meet repayments.
One private landlord who spotted the clause and brought it to the attention of industry magazine Mortgage Strategy, where it was first reported, said she was "outraged" to discover it.
She said: “The public views landlords as greedy, but how many people are aware that landlords are being forced to increase rents by banks such as Santander?”
The Santander contract states that when rents are up for renewal the landlord must "get written advice from a qualified valuer [as to] whether the market rent at the date of the review is likely to be higher than the rent currently payable."
Santander demands a copy of the valuer's advice in these circumstances and then goes on to say that:"
Santander tells buy-to-let landlords to 'raise rents by the maximum'
This would have never happened under Labour.
"Santander is facing fury from tenants and housing groups for a clause in its buy-to-let mortgage contracts requiring landlords to raise rents by “as much as can be reasonably achieved”.
The wording has been buried in Santander's contracts since 2011. It has come to light only now, however, as buy-to-let investors face an unprecedented squeeze on their incomes due to tax changes applying from April.
Many borrowers are scrutinising mortgage documentation to assess their likely position if they cannot meet repayments.
One private landlord who spotted the clause and brought it to the attention of industry magazine Mortgage Strategy, where it was first reported, said she was "outraged" to discover it.
She said: “The public views landlords as greedy, but how many people are aware that landlords are being forced to increase rents by banks such as Santander?”
The Santander contract states that when rents are up for renewal the landlord must "get written advice from a qualified valuer [as to] whether the market rent at the date of the review is likely to be higher than the rent currently payable."
Santander demands a copy of the valuer's advice in these circumstances and then goes on to say that:"
Santander tells buy-to-let landlords to 'raise rents by the maximum'
This would have never happened under Labour.
I wonder what they'll say when they see the bit about the bank repossessing the property if they can't keep up with payments 
Comment