Are tenants receiving the professional advice that homebuyers are offered?

Gooding01

I may well be missing something but in my area when someone goes through the process of renting a property, at no point does anyone raise the question of whether they want to protect their family/income etc.

Apart from the negative impact on credit scoring (when mortgaged) losing a home that you own or rent is essentially the same thing so i wonder why tenants aren't being encouraged to consider income/life protection.. Is it simply that more are likely to say no and therefore advisors aren't willing to spend the time educating??

Do things happen differently where you live??

Pixie5740

Having your home repossessed by the mortgage lender is nothing like being evicted for rent arrears at all.

If a tenant were to lose his/her job then they can apply to the council for housing benefit. If it were likely that the housing benefit would not be enough to cover the rent then the tenant can either serve notice to end the tenancy and find somewhere cheaper to live, or if in a fixed term, negotiate with the LL for an early surrender. The early surrender isn't guaranteed but I would imagine and LL, when faced with a now unemployed tenant would rather part ways civilly than end up chasing someone through the courts.

Who is going to be giving this "advice" to tenants? Letting agents? :rotfl::rotfl::rotfl:

Why do you assume that tenants have considered what would happen to them and their family if they were to lose their job?

SnooksNJ

Gooding01 wrote: »

I may well be missing something but in my area when someone goes through the process of renting a property, at no point does anyone raise the question of whether they want to protect their family/income etc.

Apart from the negative impact on credit scoring (when mortgaged) losing a home that you own or rent is essentially the same thing so i wonder why tenants aren't being encouraged to consider income/life protection.. Is it simply that more are likely to say no and therefore advisors aren't willing to spend the time educating??

Do things happen differently where you live??

I grew up in the US and funny enough my parents instilled in me that having a roof over my head was important and always have a contingency plan in case the worst case scenario happens.

stator

Pixie5740 wrote: »

If a tenant were to lose his/her job then they can apply to the council for housing benefit. If it were likely that the housing benefit would not be enough to cover the rent then the tenant can either serve notice to end the tenancy and find somewhere cheaper to live, or if in a fixed term, negotiate with the LL for an early surrender. The early surrender isn't guaranteed but I would imagine and LL, when faced with a now unemployed tenant would rather part ways civilly than end up chasing someone through the courts.

You make it sound a lot easier than it is. Finding somewhere new to live that will accept housing benefit when you don't have a job is not easy, especially if you don't want to live in a delapidated squat

Pixie5740

It's still much easier for a tenant to downsize than an owner-occupier.

societys_child

The op is a mortgage broker . . . apparently touting for business.


Shouldn't he add a signature informing us of this?

Looks a bit spammy to me

silvercar

societys_child wrote: »

The op is a mortgage broker . . . apparently touting for business.


Shouldn't he add a signature informing us of this?

Looks a bit spammy to me

Go easy it is his first post. Forum etiquette requires you to be nice to all posters.

Also, I doubt a mortgage broker would spam for tenants seeking income protection.

Gooding, if you are going to post mortgage broker related information, you should have a signature that explains you are a broker. See one of the other mortgage brokers posts for the information you need to declare.

Gooding01

Hello societies child (sorry if there is a way to tag.. i'm new to this)

Thanks for the comment, yes i am a mortgage broker and recently have been considering this as an area to move into.

I am trying to find out if this really is as it seems and that tenants aren't receiving the advice that mortgage customers do.

If so i don't think its right, many people are unprotected (and if they choose not to be thats fine) but if its because they aren't being given the opportunity to find out whats available, the FCA or advisor base are failing.

Sorry to not include more info, all the comments are really useful, i can't imagine spamming on here would be a good way to find business but starting a conversation about whether people need help they aren't receiving is really important so i appreciate any feedback

Maybe people are very aware of what life insurance is and wouldn't appreciate advice, i'd love to hear any thoughts

theartfullodger

I never realised such "advice" could be considered or described as "professional": always felt/feels much more like a salesman's pitch....

Pixie5740

Gooding01 wrote: »

I am trying to find out if this really is as it seems and that tenants aren't receiving the advice that mortgage customers do.

Mortgage brokers are, at the very least, are regulated by the FCA. Who regulates letting agents and the "advice" they would give to tenants? In England and Wales the bloodsucking leeches already extract hundreds of pounds out of tenants in referencing fees and whatever other fees they make up, not to mention the contents insurance that some try and bully tenants into taking out even though tenants can get it cheaper elsewhere, so this "advice" would just come across as another means of letting agents extracting money from tenants.

Gooding01

silvercar wrote: »

Go easy it is his first post. Forum etiquette requires you to be nice to all posters.

Also, I doubt a mortgage broker would spam for tenants seeking income protection.

Gooding, if you are going to post mortgage broker related information, you should have a signature that explains you are a broker. See one of the other mortgage brokers posts for the information you need to declare.

Thanks for the help... much needed