BTL mortgage – No DSS LHA or Student clause?
I’m in the process of buying my first Buy to Let property and have just received the mortgage offer from the solicitors and it states that no Dss / Housing authority / Students are allowed as tenants.
In my original mortgage offer from the financial advisors which I only received 4 days ago, there is no mention of this even in the special conditions attached to the end of the offer.
Is this a normal BTL mortgage condition? Although I am new to the purchase of BTL property, I have worked with/for a lot of landlords and have gained a fairly good knowledge of the subject – or so I thought!
Any advice or thoughts from the members would be appreciated.
Thanks
Neil
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Member Since August 2013 - Comments: 161
11:09 AM, 26th May 2015, About 11 years ago
Reply to the comment left by “Jerry Jones” at “18/05/2015 – 11:12“:
I asked this question and as per Gary’s comment, was told that if your tenant loses their job, you have to evict them. Lose your job = lose your home, irrespective of whether you can continue to pay or not, nice huh?
Member Since June 2013 - Comments: 1121
11:31 AM, 26th May 2015, About 11 years ago
Reply to the comment left by “Colin McNulty” at “26/05/2015 – 11:09“:
Colin I agree. I do empathise with HB tenants as the whole system conspires against them. I don’t take them because of the prejudice by the mortgage and insurance companies with clauses such as this, and the direct payment to tenants policy to “encourage” them to budget properly. Referencing and Guarantors are also a nightmare with HB tenants. Even though I advertise saying no HB applicants I still get them ringing and asking. When I explain the reasons as above I get abuse. Don’t blame the landlords. Blame the system that makes it so perilous for landlords to take HB tenants. I know there are landlords on 118 who only take HB and do very well out of it. But I think you have to have the right mentality for that tenant type – and I don’t.
Member Since February 2016 - Comments: 1
1:01 PM, 17th February 2016, About 10 years ago
I would just like to point out that a lot of people are working 35/40 hours a week, but still have to be on Housing benefit to afford the rent, which would be 3/4 of their income if not received. Its about time this clause was made illegal