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Lenders & Licenses .......

PostPosted: Thu May 23, 2013 1:15 pm
by Nick
Reading landlords could struggle to find mortgages should plans for stricter regulation of the private rental sector gain approval. The council is currently consulting on a number of proposals for improving the standard of rented accommodation, including the introduction of additional and selective licensing for landlords. However, at least one lender – RBS and its subsidiary NatWest – has a longstanding policy not to lend where BTL property requires a special license.

Will lenders now avoid lending to landlords in Scotland because of the licensing regulation?

I have to say that I don't follow Lender's logic. I would think that licensed property would make for a safer loan - it ensures that the property meets standards and regulations, & is maintained, and it limits the competition and drives rents up. All good for lenders. Nevertheless it looks as if BTL mortgages may disappear from certain areas.