Pi-eater Posted February 20, 2013 Report Share Posted February 20, 2013 A couple of questions for the forum? 1. Is anyone aware of lenders that will allow tenants to be in receipt of state benefits/DSS/housing benefit/universal credit? I think I can only find one or two (possibly). 2. Is anyone aware of lenders that will allow landlords to lease their property to a Council or Housing associated on a long term lease, who then sublet to tenants to be in receipt of state benefits/DSS/housing benefit/universal credit? etc. My mortgage broker is struggling and I was wondering if anyone out there could help point us in the right direction.... ..... I have heard that BTL landlords are not telling lenders when applying for mortgages that they intend letting to DSS tenants and purposely breaching the terms of their mortgage... I wonder, does this have any truth???? Any pointers would gratefully be appreciated!!! Link to comment Share on other sites More sharing options...
Richlist Posted February 20, 2013 Report Share Posted February 20, 2013 If your mortgage broker is struggling to find lenders that approve of DSS then there aren't gonna be many. None of my lenders allow DSS. Any that do are likely to apply financial &/or restrictive penanlties. ..... I have heard that BTL landlords are not telling lenders when applying for mortgages that they intend letting to DSS tenants and purposely breaching the terms of their mortgage... I wonder, does this have any truth???? Of course they do.....I doubt anybody is actually checking that landlords comply with their mortgage T&C's ......UNTIL the tenancy goes wrong. Link to comment Share on other sites More sharing options...
Mortitia Posted February 20, 2013 Report Share Posted February 20, 2013 On the odd occasion I have applied for a BTL mortgage - usually via a high street bank that is one of the first questions they ask -' who will you be renting to'. I don't let to DSS applicants nor would it enter my head to give a property to a housing association - are you mad! This and other similar sites are full of tales of woe about damaged properties by this type of action. I hope this is enough of a pointer or maybe it should be accompanied by a length of 4 X2. Mortitia Link to comment Share on other sites More sharing options...
Carryon Regardless Posted February 20, 2013 Report Share Posted February 20, 2013 Scenario - T's have been good and pay promptly, no issues with them as T's. Would many, if any, here be aware if they become HB claimants ? Are we expected to evict those that have proven themselves to be good business ? Would we ? I wouldn't. Invariably I have been asked if I will be taking 'professional' T's by lenders but I doubt they would be happy if ladies of the night were operating from my flats. Of course I always say I will, what happens later is beyond my control. Link to comment Share on other sites More sharing options...
Melboy Posted February 21, 2013 Report Share Posted February 21, 2013 Those BTL who conceal crucial information from their mortgage lender re- DSS tenants in occupation will also invalidate their property buildings/ contents insurance. I have 1 DSS Tenant no mortgage but the insurance for the building and rent guarantees etc. is that much higher in premiums than my other properties. Link to comment Share on other sites More sharing options...
Pi-eater Posted February 21, 2013 Author Report Share Posted February 21, 2013 Thanks everyone! I value your opinions and appreciate the time taken to respond. I guess I will explore other avenues. Perhaps, as a society the UK needs to put more thought into this to allow the private sector to support the provision of affordable living to society as a whole. With more and more people struggling financially and claiming benefits, where will they all live? Link to comment Share on other sites More sharing options...
Melboy Posted February 21, 2013 Report Share Posted February 21, 2013 With more and more people struggling financially and claiming benefits, where will they all live? That question Pi-Eater is a Social Seciurity/DSS/ Government Housing question and for a landlord only a secondary issue. This Government and previous Governments have made private landlording/renting out property more and more difficult with non ending legistlation in favour of tenants to the point whereby any newbie landlord needs a housing law degree before renting out. And it is going to get worse for landlords from April 1st ! Link to comment Share on other sites More sharing options...
Richlist Posted February 21, 2013 Report Share Posted February 21, 2013 Its important for landlords not to let emotion cloud their judgement. Letting property is a business and as such decisions should be businesslike. If you are unable or unwilling to put personal concerns to one side then letting property is not for you. Link to comment Share on other sites More sharing options...
Melboy Posted February 21, 2013 Report Share Posted February 21, 2013 Absolutely RL Landlords are not social workers. "Firm but Fair" has always been my landlord's motto. Link to comment Share on other sites More sharing options...
Carryon Regardless Posted February 21, 2013 Report Share Posted February 21, 2013 So many of us learn the hard way that being compassionate just makes us a soft touch in the eyes of many T's. Link to comment Share on other sites More sharing options...
Geezah Posted March 5, 2013 Report Share Posted March 5, 2013 The Mortgage Works are happy to accept tenants on HB. Link to comment Share on other sites More sharing options...
Melboy Posted March 6, 2013 Report Share Posted March 6, 2013 The Mortgage Works are happy to accept tenants on HB. A subsidery of the Nationwide Building Society. Link to comment Share on other sites More sharing options...
Antnkel Posted March 6, 2013 Report Share Posted March 6, 2013 They are very relaxed about a number of things. Link to comment Share on other sites More sharing options...
TKL Posted March 6, 2013 Report Share Posted March 6, 2013 Perhaps, as a society the UK needs to put more thought into this to allow the private sector to support the provision of affordable living to society as a whole. I disagree, but not for reasons you might think. A diverse PRS is very important to the UK housing market in general, but it is not an all-purpose solution to every problem. Current legislation is displacing more and more social tenants into the private rental sector - the so-called bedroom tax will do so when social tenants face cuts for over-occupying and cannot find a smaller alternative home in the social sector, and proposed rent increases to high-earning social tenants will likely do the same. The fact is that it is very hard for landlords to let to social tenants, and certainly more costly due to the perceived higher risk on the part of landlords and insurance. Rents raise due to this and increased demand, which due to the rents being paid by benefits claimants will result in a higher welfare bill. The situation is undesirable for landlords, tenants, lenders and the government. As I said, the PRS can only do so much. I think London's 'G15' housing associations have the right idea by entering the private rented sector to fund the construction of more affordable social housing in the long term. This is my opinion, of course - your own views are very welcome Regards, A Link to comment Share on other sites More sharing options...
Richlist Posted March 6, 2013 Report Share Posted March 6, 2013 I wouldn't touch so called 'social tenants' with your bargepole ! Link to comment Share on other sites More sharing options...
Melboy Posted March 6, 2013 Report Share Posted March 6, 2013 They are very relaxed about a number of things. Savings rates and customer service being but two of those things. Link to comment Share on other sites More sharing options...
Antnkel Posted March 6, 2013 Report Share Posted March 6, 2013 They're still a bit like what banks were before the crash- lending to more or less anyone. Link to comment Share on other sites More sharing options...
Geezah Posted March 8, 2013 Report Share Posted March 8, 2013 I forgot to add, BM Solutions, are now happy to lend to Landlords with tenants on HB. Contact me if you need more details. Link to comment Share on other sites More sharing options...
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