Someone who is behind with the rent

Emmia

If the mortgage company "buys" more of the property the mortgage payment would rise as it would be for a larger share.

Can "she" (the occupier) afford a higher mortgage payment? She's in arrears already on the required payments. The mortgage lender would presumably want to do affordability tests before getting involved, even if this is possible.

HampshireH

The mortgage provider may choose to take on the arrears to mitigate their risk.

However in doing so your friend will need to address the reason they are in arrears in the first place. They will also need to be able to afford to pay the lender back (plus the interest which they  currently aren't being charged)

If they can afford to pay the increase to the lender then they can afford to pay it back to the landlord and are choosing not to. It's rare a landlord wouldn't accept a payment plan.

The above wouldn't be buying a bigger share it would be moving the debt and adding interest

R200

She is now working 2 jobs and taking all overtime and extra shifts she can get just to increase her mortgage potential 

Emmia

R200 said:

She is now working 2 jobs and taking all overtime and extra shifts she can get just to increase her mortgage potential 

Her priority should be paying her rent arrears, there's no guarantee the mortgage lender will want to increase their share and risk of a defaulting borrower.

MWT

R200 said:

She is now working 2 jobs and taking all overtime and extra shifts she can get just to increase her mortgage potential 

Not paying the rent is doing her mortgage potential more damage than she can cover by taking extra overtime and shifts...

Hopefully she is at least making paying the rent arrears a priority after paying the mortgage, rather than relying on the wrinkles in the system to stop her from being evicted...

R200

MWT said:

R200 said:

She is now working 2 jobs and taking all overtime and extra shifts she can get just to increase her mortgage potential 

Not paying the rent is doing her mortgage potential more damage than she can cover by taking extra overtime and shifts...

Hopefully she is at least making paying the rent arrears a priority after paying the mortgage, rather than relying on the wrinkles in the system to stop her from being evicted...

If the mortgage company "buys" more of the property the mortgage length would be longer as it would be for a larger share.

silvercar

R200 said:

MWT said:

R200 said:

She is now working 2 jobs and taking all overtime and extra shifts she can get just to increase her mortgage potential 

Not paying the rent is doing her mortgage potential more damage than she can cover by taking extra overtime and shifts...

Hopefully she is at least making paying the rent arrears a priority after paying the mortgage, rather than relying on the wrinkles in the system to stop her from being evicted...

If the mortgage company "buys" more of the property the mortgage length would be longer as it would be for a larger share.

The mortgage company won’t be buying more of the property. They will be making a payment of the rent arrears in order to protect their interest in the property. So the total amount owed will be greater for the same share owned. The mortgage payments will increase to cover the increased borrowing.

R200

silvercar said:

R200 said:

MWT said:

R200 said:

She is now working 2 jobs and taking all overtime and extra shifts she can get just to increase her mortgage potential 

Not paying the rent is doing her mortgage potential more damage than she can cover by taking extra overtime and shifts...

Hopefully she is at least making paying the rent arrears a priority after paying the mortgage, rather than relying on the wrinkles in the system to stop her from being evicted...

If the mortgage company "buys" more of the property the mortgage length would be longer as it would be for a larger share.

The mortgage company won’t be buying more of the property. They will be making a payment of the rent arrears in order to protect their interest in the property. So the total amount owed will be greater for the same share owned. The mortgage payments will increase to cover the increased borrowing.

Yes if it was say 50% shared ownership it could go now to 60-70% shared ownership with the increased mortgage to buy a further percentage of the property.

so the rent would be negotiated lower to an amount the tenant can afford. Have to bear in mind the increase in mortgage payments when the LL negotiations are happening 

HampshireH

R200 said:

silvercar said:

R200 said:

MWT said:

R200 said:

She is now working 2 jobs and taking all overtime and extra shifts she can get just to increase her mortgage potential 

Not paying the rent is doing her mortgage potential more damage than she can cover by taking extra overtime and shifts...

Hopefully she is at least making paying the rent arrears a priority after paying the mortgage, rather than relying on the wrinkles in the system to stop her from being evicted...

If the mortgage company "buys" more of the property the mortgage length would be longer as it would be for a larger share.

The mortgage company won’t be buying more of the property. They will be making a payment of the rent arrears in order to protect their interest in the property. So the total amount owed will be greater for the same share owned. The mortgage payments will increase to cover the increased borrowing.

Yes if it was say 50% shared ownership it could go now to 60-70% shared ownership with the increased mortgage to buy a further percentage of the property.

so the rent would be negotiated lower to an amount the tenant can afford. Have to bear in mind the increase in mortgage payments when the LL negotiations are happening 

That's not how it works.

The HA are also unlikely to allow staircasing whilst in arrears. The mortgage company won't increase the mortgage if they can't afford to pay the arrears.

BarelySentientAI

R200 said:

silvercar said:

R200 said:

MWT said:

R200 said:

She is now working 2 jobs and taking all overtime and extra shifts she can get just to increase her mortgage potential 

Not paying the rent is doing her mortgage potential more damage than she can cover by taking extra overtime and shifts...

Hopefully she is at least making paying the rent arrears a priority after paying the mortgage, rather than relying on the wrinkles in the system to stop her from being evicted...

If the mortgage company "buys" more of the property the mortgage length would be longer as it would be for a larger share.

The mortgage company won’t be buying more of the property. They will be making a payment of the rent arrears in order to protect their interest in the property. So the total amount owed will be greater for the same share owned. The mortgage payments will increase to cover the increased borrowing.

Yes if it was say 50% shared ownership it could go now to 60-70% shared ownership with the increased mortgage to buy a further percentage of the property.

so the rent would be negotiated lower to an amount the tenant can afford. Have to bear in mind the increase in mortgage payments when the LL negotiations are happening 

Why would paying off rent arrears mean any change in ownership?  That doesn't make any sense.  Just getting the mortgage company to pay the arrears would mean that you owed them extra money for the same 50%.

Staircasing up to 60-70% is a completely different discussion.  And it would seem odd for a lender to agree a larger mortgage for someone who is already having trouble paying.