17th
Feb 2017
As reported earlier this month Santander was found out to be 'hiding' a clause in the buy-to-let mortgage contracts stating that landlords must raise rents “as much as can be reasonably achieved whenever possible". The Bank has now decided to get rid of the clause in all future BTL mortgage contracts.
A publication that exposed the clause was contacted by a private landlord when, after six years, she had discovered the clause buried in her contract.
The landlord said: “The public views landlords as greedy, but how many people are aware that landlords are being forced to increase rents by banks such as Santander?
“The Santander contract states that when rents are up for renewal the landlord must get written advice from a qualified valuer [as to] whether the market rent at the date of the review is likely to be higher than the rent currently payable.”
The clause had been slammed by industry figures and because of the outcry the Bank appointed a spokesperson to announce their plans for the clause.
The spokesperson for Santander announced that the bank's policy was being discussed and more than likely changed, however he was insistent that: “it is for the landlord to set a rent that both they and the tenant agree upon."
Santander has seemingly dropped the clause from its BTL contract as they had no intention "for it to be misunderstood”.
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