BTL mortgage contract.

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    BTL mortgage contract.

    Quote:
    "The vast majority of mortgage lenders specify very clearly in their mortgage terms and conditions that Housing Benefit tenants must not be offered tenancies."

    Could some one confirm the above quote taken from another forum.

    #2
    I would not say the VAST Majority but there are several who will not allow HB tenants and specify this in their terms!

    Many of the bigger BTL Lenders are not this draconian however.
    GOVERNMENT HEALTH WARNING: I am a woman and am therefore prone to episodes of PMT... if you don't like what I have to say you can jolly well put it in your pipe and SMOKE IT!!

    Oh and on a serious note... I am NOT a Legal person and therefore anything I post could be complete and utter drivel... but its what I have learned in the University called Life!

    Comment


      #3
      Originally posted by justaboutsane View Post
      I would not say the VAST Majority but there are several who will not allow HB tenants and specify this in their terms!

      Many of the bigger BTL Lenders are not this draconian however.
      Thank you for your reply. I would very much like to read the form of words used to express this restriction. I myself have not come across such a restriction and I'm of the opinion that this may be an unlawful restriction on a persons freedom to contract. However i would be interested to read a contract incorporating such a clause, if some one has one.

      Comment


        #4
        I cant help you on that one I am afraid! I now work remotely and the mortgage files etc are all back at head office! .. Why not try calling a few mortgage lenders and tell them you are looking into terms and conditions and ask for a copy... you never know you may get one through the post!
        GOVERNMENT HEALTH WARNING: I am a woman and am therefore prone to episodes of PMT... if you don't like what I have to say you can jolly well put it in your pipe and SMOKE IT!!

        Oh and on a serious note... I am NOT a Legal person and therefore anything I post could be complete and utter drivel... but its what I have learned in the University called Life!

        Comment


          #5
          I would be totally surprised to see such detailed terms in a reputable financial institution's commercial contracts composed by prudent lawyers. The fallout could be staggering.
          ASSUME NOTHING - QUESTION EVERYTHING!

          Comment


            #6
            Hi Bill65

            2 of my BTL mortgages have clauses in them about not letting to HB I will dig the terms and conditions out tonight and post the wording. One is with Mortgage trust and the other is with Birmingham and Midshire.

            Comment


              #7
              Well the term DSS is now invalid... but that term basically deprived disabled ppl so I suppose you could get them under DDA policies!
              GOVERNMENT HEALTH WARNING: I am a woman and am therefore prone to episodes of PMT... if you don't like what I have to say you can jolly well put it in your pipe and SMOKE IT!!

              Oh and on a serious note... I am NOT a Legal person and therefore anything I post could be complete and utter drivel... but its what I have learned in the University called Life!

              Comment


                #8
                Originally posted by Wickerman
                My mortgate express offer document in front of me now:

                Offer conditions

                e) The property must not be let to:
                - anyone possessing any form of diplomatic immunity;

                - anyone receiving any DSS benefits;

                - anyone who is a relative of you; and/or

                - any letting to a company of any form who then sublet.


                It does sound dodgy to me - define "benefit".
                Thanks for that,of course, different contracts may have different wording. This caught my eye when i read it and i have to say it sits uneasy in my mind.
                It is th sort of thing that interests me.
                Here is an abstract of the under lying philosophy of freedom to contract.

                Abstract:
                Situating human rights in private law, this paper argues that English cases allowing private businesses that provide goods and services to the general public to refuse service because of customers' group-based characteristics are inconsistent with precedent and with the underlying reason-based structure of the common law. After suggesting that the common law has not been fully displaced by human rights legislation, the paper demonstrates that the common law contains three concrete articulations of a duty to provide equal service. At the core of the rationale that best fits these bodies of case law is a status-based demand placed on those interacting in their capacity as members of an impersonal profession to refrain from taking into account any personal or group-based characteristics beyond those relevant to the provision of goods and services around which the profession is organized.

                Comment


                  #9
                  Originally posted by Wickerman
                  My mortgate express offer document in front of me now:

                  Offer conditions

                  e) The property must not be let to:
                  - anyone possessing any form of diplomatic immunity;

                  - anyone receiving any DSS benefits;

                  - anyone who is a relative of you; and/or

                  - any letting to a company of any form who then sublet.


                  It does sound dodgy to me - define "benefit".
                  How old are those offer conditions? That is an unbelievable statement, one which could dramatically undermine that company's moral fiber should it become an issue to the public.
                  ASSUME NOTHING - QUESTION EVERYTHING!

                  Comment


                    #10
                    I have a recent btl mortgage with Mortgage Trust, and their condition states;

                    The offer letter is written on the basis that you have or will let the propertyas a single residential unit in the occupationof not more than one family under a valid AST within the meaning of the housing act 1988 for a fixed term of not more than 12 months, and that you have not nor will you let the property to a tenant who is a DSS assisted/local authority tenant; or who has diplomatic immunity.

                    This is as recent as March this year.

                    Comment


                      #11
                      A blanket ban on DSS assisted/local authority tenant would by definition surely include the disabled. This would be contrary to the law and the term as it stands would have to be illegal and invalid. Any comments?
                      ASSUME NOTHING - QUESTION EVERYTHING!

                      Comment


                        #12
                        Let's be honest, how are the mortgage company going to find out, and if they did are they really going to repossess the property if you're paying the mortgage? My mortgages have similar conditions but I still have a few DSS, and if my mortgage company challenged me I would explode in a fit of rage at them!

                        Comment


                          #13
                          Originally posted by jghomer View Post
                          Let's be honest, how are the mortgage company going to find out, and if they did are they really going to repossess the property if you're paying the mortgage? My mortgages have similar conditions but I still have a few DSS, and if my mortgage company challenged me I would explode in a fit of rage at them!
                          I agree. They wouldn't want the hassle, if they are getting paid.
                          ASSUME NOTHING - QUESTION EVERYTHING!

                          Comment


                            #14
                            Just checked mine.

                            Haven't time to post the full wording today, but on my mortgage offers Paragon, Mortgage Express, and Capital Home Loans all have a clause saying not to let to anyone "on DSS Benefits".
                            On some things I am very knowledgeable, on other things I am stupid. Trouble is, sometimes I discover that the former is the latter or vice versa, and I don't know this until later - maybe even much later. Because of the number of posts I have done, I am now a Senior Member. However, read anything I write with the above in mind.

                            Comment


                              #15
                              Oh well... my boss would be up sh1t street then if Paragon and CHL decided to check up on that clause!! ALL my bosses mortgages are with these companies and we have 75% of our tenants on HB!!!!
                              GOVERNMENT HEALTH WARNING: I am a woman and am therefore prone to episodes of PMT... if you don't like what I have to say you can jolly well put it in your pipe and SMOKE IT!!

                              Oh and on a serious note... I am NOT a Legal person and therefore anything I post could be complete and utter drivel... but its what I have learned in the University called Life!

                              Comment

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