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New longer-term contracts for buy-to-let lenders

Alex Johnson

000e0ce67dfd6931e26b35c1847fef086a749cf6 300x198 New longer term contracts for buy to let lendersThe Nationwide Building Society Group says it has become the first mainstream buy-to-let-lender to allow landlords to offer their tenants longer-term contracts.

Most lenders restrict buy-to-let borrowers by requiring them to offer their tenants a maximum contract of 12 months. By allowing customers the choice to offer longer-term lets – in this case up to three years -  The Mortgage Works, part of Nationwide, aims to give more stability to renters.

Richard Napier, Divisional Director of Mortgages at Nationwide Group, 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 borrowers to be in a position to be able to meet the changing needs of the market.”

Campbell Robb, Shelter’s Chief Executive, said: ‘This news is very welcome recognition that six- or twelve-month tenancies just aren’t working for England’s renters. 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, it’s encouraging that Nationwide is leading the mortgage industry to help make renting more stable. We look forward to other mortgage lenders following suit.”

Do up a Manor House

Coming up for auction next month is this four bedroom (guide price £240,000) property, part of a the wing of Cleeveway Manor in Bishops Cleeve, Cheltenham (pictured above). It’a Grade II listed building in need of some refurbishment but, as they say, it has tremendous potential.

You need maths for mortgages
A study from the Proceedings of the National Academy of Sciences in America shows – not very controversially – that people who are not so good at maths are more likely to default on their mortgage, or as they put it “empirical evidence showing that the ability to perform basic mathematical calculations is negatively associated with the propensity to default on one’s mortgage”. However, it also showed that people with high IQs were equally likely to fall behind on their payments as those with lower IQ scores, and that those who weren’t so good at maths were actually no more likely to sign up to poor mortgage deals in the first instance.

Home insulation levels
New government figures suggest that of the 27 million homes in Britain, just over 16 million have loft insulation of at least 125mm and 13.4 million homes have cavity wall insulation. Around 205,000 homes have solid wall insulation. Compared with April 2012, 1.4 million more properties have loft insulation of at least 125mm, 610,000 more had cavity wall insulation and 73,000 more had solid wall insulation.

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