Doug Hall, deputy managing director of 3MC, told Mortgage Introducer he was speaking to the heads of credit of the lenders on 3-mc’s panel which currently would not allow its borrowers to let to this group of tenants.
He said: “I am meeting with these lenders to discuss ideas and demonstrate to them there is a real market out there to let to LHA tenants.”
The latest figures released in August by the Department of Work and Pensions showed that of the 5 million people receiving local housing allowance, 1.6 million of these – 32% – were in the private rented sector.
Hall said he wanted to get more “vanilla” lenders to consider moving into this market which is currently only serviced by specialist and commercial lenders.
He added: “I don’t think there is a lack of understanding from these lenders more that they receive so many deals already which fall outside this category that they don’t need to consider this sector of the market.
“There is a lot of demand from brokers who have landlords which service this market so lenders should view these tenants as an opportunity and not a threat.”
Last month Mortgage Introducer reported that BM Solutions and Accord had indicated they were reviewing their lending policies in respect of this tenant group.