View Full Version : Mortgagee prohibits letting to T on benefits

31-08-2007, 07:32 AM
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.

02-09-2007, 20:36 PM
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.

05-09-2007, 23:16 PM
Theres always the criminal element ie obtaining services by deception under the old act, now it is purely fraud under the new act.