BM Solutions has loosened its criteria by agreeing to lend to landlords with student tenants for the first time.
Earlier this week, the buy-to-let lender changed its criteria to allow a maximum of five student tenants on one assured shorthold tenancy agreement. Most of its rivals allow four or fewer.
The news comes after Money Marketing revealed the Lloyds Banking Group subsidiary followed its biggest rival, The Mortgage Works, in dropping its restriction on lending to landlords with tenants who are on housing benefits.
A BM Solutions spokeswoman says: “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.”
Other lenders which will lend to landlords with student tenants include The Mortgage Works, Godiva, Abbey for Intermediaries, Woolwich, Aldermore and Virgin Money.
The Buy to Let Business managing director Ying Tan says: “By widening its criteria it will get more business and maintain margins still. If BM wants more business then you may find it will loosen criteria in other areas. This is turning the tap slightly without opening the floodgates.”