Mortgagee prohibits letting to T on benefits

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  • Mortgagee prohibits letting to T on benefits

    Apologies if this quesion has been raised before but I've attempted a search on here but can't find a suitable answer.

    Does EVERY mortgage company put a clause in their T&C's stating that it is not acceptable to accept DSS Tenants into a property?

    What are the ramifications if a Landlord does allow DSS Tenants regardless of such a clause?

    Does anybody REALLY read their T&C's or is it just me again haha?

    Are most people breaching their T&C's regardless?

    My mortgage broker says :-
    Nobody ever reads them they just sign and carry on.
    He's never heard of a mortgage company even checking out the Tenants or their ability to pay rental price.
    He's never heard of a mortgage company 'calling in' a loan because a Landlord has let to a DSS Tenant.
    Ambition is Critical

    I don't profess to be a knowledge in all areas, my advice is based on life experience.

  • #2

    I expect many mortgage companies may have this clause as they see DSS (technically now Housing Benefit (HB)) tenants as being more of a risk.
    However, anyone that has been letting property for any lenght of time will know that potentially ANY tenant can become a HB tenant if they fall on hard times - what do they suggest you do then? Throw them out?
    In any case, it is very unlikely the mortgage company will ever closely monitor your tenants.


    • #3
      Theres always the criminal element ie obtaining services by deception under the old act, now it is purely fraud under the new act.


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