I take it you’re not aware that tenants are on this forum and can see how discriminative you’re being!?
I’m a single parent (not my choice) and I work part time (again not my choice) and THIS is the problem and the reason I nearly ended up homeless! I’ve rented all my life and NEVER missed a rental payment, my income is more than the 2.5 times rent and my credit score is almost perfect but I could not get a property. Apparently full time workers are more reliable and trustworthy! I’ve screen shot your thread and will be reporting it.
Good luck with it. And thank you for another sob story. We love reading them.
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You should seek social housing as gov alone is responsible for housing anyone.
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I used to make it clear in my ads that a certain income was required, and that HB applicants would need a guarantor.
I would suggest, in light of the recent legislation, you make it clear that applicants with pets will require pet insurance and a ?% uplift on the rent for additional wear and tear considerations.
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The proposed legislation, RRB?
No pets still as far as I’m concerned.
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You can list in your ad that you are looking for employed or self employed due to mortgage or insurance stipulations. This can’t be considered as discrimination on the LL part. Most mortgage lenders will ask the type of people you intend to let to and charge you according to the level of risk.
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Have you done this? Did it sail through?
TBH I didn’t do this in my ad although I have it on good authority that would be the way to word it to avoid any accusations of discrimination.
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You can only do it if its true. Are there any lenders or insurers still operating that policy?
Yes there is.
I responded to this a few hours ago but the post is in moderation. Probably because I named a couple of lenders that I am with that still use this practice.
I have two BTL mortgages taken out within the last year. I used an online broker to source my mortgages. Basically, they work similar to an internet search engine. You enter your details which include questions about the type of tenant you will be looking for.
- Employed/self employed
- DSS/Universal Credit
- Holiday let etc.
You can select each category and see how many will lend to you and what rate they will lend at.
Option 1 was always the lowest rate.
As a new LL I wanted the lowest rate and didn’t want to increase the chance of being rejected so went for option 1.
I read an article recently, I think it was a representative of a LL association that was telling the housing minister that some LLs and agents reject social housing tenants because of the lenders and insurance companies stipulations. They have gone some way in addressing the issue by making it illegal to have a blanket ban on certain types of tenant in the advertising literature.
Agents used to have signs in their window “NO DSS” this is now illegal although the issue still remains.
I have taken out 2 BTL mortgages in the last year with Santander and Virgin Money and they both ask what type of tenant you intend to let the property too. It’s not to say they are directly discriminating as they don’t refuse the mortgage for choosing to let to DSS it’s just they charge a higher rate. They also charge a higher rate if you put your property in a company. In my case I was a new LL with my first and only two properties. I wanted the cheapest rate and didn’t want to choose a category of tenant that would be thought of as higher risk giving my application a greater chance of being rejected.
It’s the same thing with insurance company’s. They will charge a higher premium for DSS tenants.
I do recall this issue being raised before. I think it may have been Ben Beadle of the NRLA telling Michael Gove why many LLs don’t accept DSS.
It’s a very clever way to put responsibility on the LL. It’s ultimately the LL who decides whothey take, so insurance company will avoid any accusations in discrimination.
Something that struck me as quite not right is the advertising ban stating “No DSS” is it is only considered discriminatory because the statement would inadvertently bar a disabled person receiving benefits.
I guess it’s never about a person but rather how cumbersome it is to set benefit payment, then to amend it and all the risks involved in T withoulding the payment. I myself am on disability benefits, and my heart goes out to all my comrades out there.
That’s interesting Chris. Thanks for the additional info.
Did a speculative call with Nationwide fairly recently and was advised that targeting “professional tenants” is what the underwriter wants to hear.
Who are professional tenants? The ones who know how to play the system?
Ha in other words working
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I shouldn’t have thought the worst. We just have an inside joke about “professional” benefit claimants, so I thought by association.
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