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Renting without permission of mortgage lender

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Hi all,

I will keep this as simple as possible even though it is a very complicated story. I own a house that I have bought from my ex-husband after he went bankrupt (I actually bought his interest out from his Official Reciever). Since then I have kept all payments up to date etc.

However, I have had someone in the house renting it from me for the last 10 months. The tenants moved out recently and the house is now empty.

I have found out recently that my ex has informed my mortgage lender that I have had someone renting the house and that I have actually broken the terms of my agreement.

What can the mortgage lenders do and/or what would you expect them to do?

Will they repossess the house or give a fine etc?

Any help in this would be very much appreciated...

Thanks,

Sarah Saver99

Comments

  • benjo
    benjo Posts: 482 Forumite
    Saver99 wrote: »
    Hi all,

    I will keep this as simple as possible even though it is a very complicated story. I own a house that I have bought from my ex-husband after he went bankrupt (I actually bought his interest out from his Official Reciever). Since then I have kept all payments up to date etc.

    However, I have had someone in the house renting it from me for the last 10 months. The tenants moved out recently and the house is now empty.

    I have found out recently that my ex has informed my mortgage lender that I have had someone renting the house and that I have actually broken the terms of my agreement.

    What can the mortgage lenders do and/or what would you expect them to do?

    Will they repossess the house or give a fine etc?

    Any help in this would be very much appreciated...

    Thanks,

    Sarah Saver99

    Im no expert but found this on the Shelter website......

    "
    Can people with mortgages legally grant a tenancy?

    Yes, but only if their mortgage deed says it is allowed and/or they have their lender's permission. Most mortgage agreements do not allow tenancies to be granted without permission, and many lenders will try to repossess the property if they find out that this has happened."


    I dont know if this reflects the reality of the situation, I have read here that most lenders will not reposses if all payments are made - but as you can see, they would be within their rights to reposses.


    I dont think they can fine you but they can insist on increasing your interest rate to one which more closely matches a BTL, they no longer have to honour your current deal, since you broke the terms and conditions.


    Do your lenders have any proof? or just a phone call from disgruntled ex husband? perhaps you could bluff it out and assure them it was a relative staying there, house sitting while you were away.... and with an ex like that, make sure you are sqeaky clean in future, so he cant drop you in the mire.


    Goodluck.
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    Saver99 wrote: »
    What can the mortgage lenders do and/or what would you expect them to do?

    Will they repossess the house or give a fine etc?
    1) They could repossess. Highly unlikely.
    2) They could switch you to a buy-to-let mortgage and charge a raft of fees to go with it.
    3) They could increase the rate on your mortgage as a tenant means a higher risk.
    4) They could suggest you apply for the right to let the property short term.

    I'd suggest that you get it all above board anyway.

    And check your buildings insurance actually covers the building in these circumstances!
  • I think that they have more important things to worry about so you could wait for them to contact you and plead ignorance, apologise profusely and ask their advice on the way forward.

    On the other hand, it isn't fair on your tenants. Dealing with it will take the stress away.

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • squack
    squack Posts: 633 Forumite
    if the house is now empty then i can't see it being a problem. make sure that theres no evidence left in the property of them having been there and if you get any grief invite the mortgage people round to inspect the property :money:
    squaaaaaaaaacccckkkkkk!!!! :money:
  • Gymgenius
    Gymgenius Posts: 208 Forumite
    squack wrote: »
    if the house is now empty then i can't see it being a problem. make sure that theres no evidence left in the property of them having been there and if you get any grief invite the mortgage people round to inspect the property :money:

    The getting rid of evidence bit got me thinking too - tell your provider that your ex is just being vindictive and is lying.
  • Hi all,

    Thank you so much for the responses. They are all very helpful.

    Sarah Saver99
  • TEDDYRUKSPIN
    TEDDYRUKSPIN Posts: 1,528 Forumite
    opinions4u wrote: »
    1) They could repossess. Highly unlikely.
    2) They could switch you to a buy-to-let mortgage and charge a raft of fees to go with it.
    3) They could increase the rate on your mortgage as a tenant means a higher risk.
    4) They could suggest you apply for the right to let the property short term.

    I'd suggest that you get it all above board anyway.

    And check your buildings insurance actually covers the building in these circumstances!

    (1) Repossess? Taking the biscuit. So NOT happening.
    (2) Switch you? Unlikely. They will try to force you onto a package, but as long as you don't sign it. They can't do anything.
    (3) Increase your mortgage. Same applies. They could try and you could take them to court. The terms and conditions have been broken but no word in any policy states that they will put you on a new package. This is illegal.
    (4) Most likely. Try......

    And for the last post.

    Plead ignorance.

    Nearly missed this out. Make sure you get the right building insurance. Standard insurance does not apply!!!
    Motto: 'If you don't ask, you don't get!!'

    Remember to say thank you to people who help you out!

    Also, thank you to people who help me out.
  • rfsp
    rfsp Posts: 45 Forumite
    dont worry nothing will happen!!!
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    (3) Increase your mortgage. Same applies. They could try and you could take them to court. The terms and conditions have been broken but no word in any policy states that they will put you on a new package. This is illegal.
    Please can you provide links to case law or even FSA guidelines or FOS rulings, as I suspect you made this up.
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