BM removes Housing Benefit restrictions
In December Mortgage Introducer revealed that BM Solutions and Accord Mortgages were considering a review after property experts raised concerns that their existing policies restrict vulnerable people getting into housing.
In a statement BM said: “Through its BM Solutions brand, Lloyds Banking Group is a leading buy-to-let lender.
“Recognising the increasingly important role buy-to-let has in meeting housing demand, we have reviewed our current policy relating to tenants receiving housing benefits and its impact on our lending decision.
BM confirmed the new policy will come into effect as of today and will apply to both existing and new mortgages.
Last week Nationwide’s BTL lending subsidiary The Mortgage Works reversed its decision to stop lending to landlords with housing benefits after receiving a backlash from its customers.
The Mortgage Works restricted such cases for less than a week.