First Direct and Lodgers

Rachyk

I've had to sign a letter to other half's mortgage company stating that the companies entitlement to the property comes before my own if anything happens, could be to do with that? Perhaps if you have a contract with a lodger then you might be signing one thing that states they have rights if you default on your mortgage? Not sure, just speculating!

redonion

Rachyk wrote: »

I've had to sign a letter to other half's mortgage company stating that the companies entitlement to the property comes before my own if anything happens, could be to do with that? Perhaps if you have a contract with a lodger then you might be signing one thing that states they have rights if you default on your mortgage? Not sure, just speculating!

I think that's incorrect speculation. But my opinion is fairly worthless - sorry to be a broken record and it's totally up to the OP what to do, but it's a fact that posting the relevant contract terms is what could really sort this out.

nicenspicy

Annisele wrote: »

How did you discover this?

I found out because I mentioned lodgers in passing during a phone call with First Direct. I'd mentioned lodgers several times before and no one said anything, but the last time was different.

redonion wrote: »

... posting the relevant contract terms is what could really sort this out.

I haven't seen the relevant part in writing, so I'll have a dig around and see what I can find.

redonion

nicenspicy wrote: »

I found out because I mentioned lodgers in passing during a phone call with First Direct. I'd mentioned lodgers several times before and no one said anything, but the last time was different.

My money would be on the person on the phone not really knowing their own terms in that much detail, and likely not understanding the difference between a tenant with basic protection, and a lodger.

How did you find the mortgage application process, by the way (quick, straightforward?), and how long ago was it? I'm considering getting a mortgage with them so I'm interested in people's experiences.

nicenspicy

redonion wrote: »

How did you find the mortgage application process...

I haven't got anything to compare it to, but it seemed fine. It took about 2 weeks after I sent them my finance documents, although my situation is very simple (PAYE and a savings account).

Thrugelmir

I know several people that have used this site, both to find lodgers and accomodation. Appears they offer a draft licence (at a fee).

http://www.spareroom.co.uk/content/info-landlords/lodger-agreement/

Rachyk

https://forums.moneysavingexpert.com/discussion/3596635

I just found this thread which does seem to suggest that there reasoning is as I thought, don't want to risk the lodger having any financial rights to the place. This thread said they tried again and were just given a form to sign like I had to.

kingstreet

Rachyk wrote: »

I've had to sign a letter to other half's mortgage company stating that the companies entitlement to the property comes before my own if anything happens

That's a consent to mortgage form, and it would be required for any non-borrower adult resident in the property, but only on the date the mortgage completes.

nicenspicy

Thrugelmir wrote: »

Appears they offer a draft licence (at a fee).

That looks useful, but as I mentioned earlier First Direct don't allow contracts with lodgers (although I can't find that in writing).

redonion wrote:

Do post what's in your contract about tenancy though...

Sorry it's taken so long - it's been a busy period. The only thing I could find that might be relevant is in the terms and conditions; things that might cause a termination of the mortgage contract:

...anyone else acquires any other security or similar interest in the Property.

The above is paraphrased, but that's all I could find. I can't see how lodgers can affect this, especially since First Direct insist on there being no written contract for lodgers?