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Co-Op removes restrictions on letting to DSS tenants

Platform, the intermediary lender of The Co-operative Bank, will no longer restrict landlords from letting to tenants in receipt of housing benefit.

From today, buy-to-let landlords taking out a mortgage with Platform will be permitted to let to tenants at their discretion and in line with the other conditions of let which are set out in the terms and conditions of their mortgage.

This change will also be replicated across all lending brands of The Co-operative Bank.


Last month, NatWest lifted restrictions on buy-to-let landlords which prevented them from letting to tenants in receipt of housing benefit. Other lenders, including Nationwide, have started to follow suit.  

The move came after NatWest caved in to mounting industry pressure to lift restrictions on buy-to-let landlords renting to DSS tenants.

In October last year, NatWest's lending practices came under attack after the bank told one landlord that she would either have to evict her tenant of two years or take her mortgage business elsewhere, after a blanket ban by the bank on benefit claimants.

Gordon Soutar, managing director of mortgages at The Co-operative, commented: “We are glad to be able to remove this condition to the benefit or our landlords and prospective tenants who previously may have been restricted from taking up tenancy due to the inclusion of this letting condition in our mortgage terms and conditions.

“Our charity partner, Centrepoint, has raised this issue and the potential impact that this condition of let could have on the young people they work with. This is not a condition that we want to continue to include in the mortgages that we offer and we will no longer enforce these clauses in our mortgage terms and conditions from Monday 1 April and we will completely remove this condition from our processes and systems with a completion date of 19 May 2019.”

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  • jeremy clarke

    And in other news landlords are given up to 4 months to pay their mortgages!

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    • 01 April 2019 10:56 AM

    So what I say!
    Still makes no difference I will still discriminate against HB tenants because the HB and eviction system is still not fit for purpose.
    I'll stick with full wage paying tenants and RGI for the worse case scenario.
    The other thing that annoys me is that many HB claimants are gaming the system.
    They just do the minimum 16 hrs of alleged work to gain all the benefits and can exceed the OBC.
    I will not rent to those p takers on principle even if they can afford the rent!


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