Lloyds buy-to-let lender to accept student sharers

Lloyds buy-to-let subsidiary BM Solutions is to start lending to landlords who let Houses in Multiple Occupation properties to students.

However, its criteria are tight with a maximum of five sharers on one Assured Shorthold Tenancy agreement. BM Solutions will not lend where tenants in the same property are on separate tenancy agreements – for example, bedsits.

BM Solutions has recently also dropped its restriction on lending to landlords who accept housing benefits tenants.

A BM Solutions spokeswoman said: “We regularly review our lending policies and make changes when we feel it is necessary to do so.

“The private rental sector is playing an increasingly important role in supporting the demand for housing in the UK and as such we are taking the necessary steps to update our policies to support this.”

Meanwhile, Teachers Building Society has improved the loan calculation on its buy-to-let mortgage deal, which is available to teachers and education professionals in England, Scotland and Wales and also to anyone buying or remortgaging property in Dorset.

The mortgage is now calculated on the basis of rental income being a minimum of 125% of the mortgage payment, calculated for affordability reasons at the society’s SVR of 5.74%. The deal on offer is for less than this, and is a two-year discounted variable rate at 3.49% with an arrangement fee of £1,499 and an application fee of £99.