Leeds criteria changes aid longer-term tenants and landlords
Leeds Building Society has made further improvements to its mortgage criteria to help longer-term tenants and landlords alike.
The UK’s fifth largest society will now accept tenancy agreements for a period to suit both the tenant and the landlord, and will not stipulate a maximum tenancy period, which was previously set at 12 months.
A number of lenders will now accept longer term tenancies, but most will only go to a maximum of three years and Leeds will be amongst the few with no maximum.
Last week’s report from The Resolution Foundation, citing the sharpest falls in home ownership since a peak in the early 2000s, highlighted that those in the private rented sector were spending more of their income on housing than homeowners and that there was more insecurity in short-term tenancies.
“This is a good example of our strategy of supporting borrowers who are not well served by the market,” said Richard Fearon, Leeds Building Society’s Chief Commercial Officer.
“By demonstrating flexibility and not imposing a maximum tenancy period we are helping to support our Buy to Let borrowers.”
According to research from Shelter, 70% of renters would value a term between three and five years and the homeless charity has welcomed moves from lenders to amend longer-term tenancy criteria.
David Hollingworth, Associate Director Communications at L & C Mortgages, said: “More people are renting for longer but often find that they have little security of tenure, with tenancies often offered only as a six to 12 month option.
“Leeds Building Society’s removal of the maximum tenancy period will help increase choice for landlords and their tenants, both of whom may prefer a longer-term tenancy agreement to be in place.”
 CML report - Mortgage lenders open up buy-to-let to longer tenancies
 The Resolution Foundation using data from the Office for National Statistics’ Labour Force Survey (LFS).
Notes to Editors
Leeds Building Society won the awards for Best Building Society Savings Provider and Innovation in Personal Finance (Part and part mortgages) at the 2016 Moneyfacts Awards.
The Society received the ‘Innovation Award (Lenders)’ at the Mortgage Finance Gazette Awards 2016, the third consecutive year it has won this category, as well as the award for ‘Product Innovation (Lenders)’.
The Society also has been named ‘Best Regular Savings Account Provider’ for the second consecutive year by independent consumer advice website Savings Champion.
Leeds Building Society has 65 branches throughout the UK, Gibraltar and Ireland and assets of £14.9bn (at 30th June 2016). The Society has operated from the centre of Leeds since 1886.