tenant fallen behind on mortgage payment

sillywoman

hi can anybody help me please ? anybody ?

My tenant has lived in my house for 2yrs 2months and has been really good, however since she came off housing benefits seven months ago rent has been late four times anything between 2 days and 2 weeks (I pay her mortgage by cheque to the mortgage company every month) the payment has arrived a little late to the company about 4 times now and I have had letters saying "please pay within 14 days etc" howvever last month she had a serious personel problem and missed the payment (march) I cant afford to pay her mortgage as well as mine so I am in arrears for that house - she has told me she will pay me at the end of this month along with the rent due (she will, she always does eventually).However I had a leaflet & letter from the mortgage company saying "what to do when you have trouble paying your mortgage" and a letter saying "Your in arrears and somebody will visit your home".

That somebody was from the psp -what does that mean ? (mortgage company is chelsea) knocking on my tenants door asking for me or my husband) she allowed him in and he asked all kinds of questions (rent per month ,who lives there etc) he seemed really official and was quite intimidated,he was very pushy, the thing that bugs me more is he took a letter addresed to my husband and I back that had been posted through the door earlier that day.That is really annoying !!!

Do you think Im in trouble with the mortgage company? it the first time Ive missed a payment with them, I lived in the house myself two years before I started the buy to let.How soon do mortgage companies act on a missed mortage payment ?

I did write the the mortgage company explaing the situation - but I did it a little late really (last week).

Really worried Im going to lose this house !!!!! help please !!

PasturesNew

I am a bit confused.
Why is it her mortgage, yet she's a tenant?
Isn't it your mortgage?

Unfortunately this is the nature of the beast. When renting out a property as a BTL you have to build into your business plan contingencies for things like boiler breakdowns. And consider the void periods and non-payments

Does your lender know you are renting it out?

PasturesNew

Something needs to be clarified as there is some confusion coming through from your posting. But it reads as if you've not told your lender you are renting the house out - and as if your mail still goes to your rented house.

There are two separate things in life:
1] A residential mortgage. On your home.
2] A BTL commercial loan. For a BTL property.

You can't rent your home out without asking for permission from the lender. If asked, there will be a small fee (£100-300 usually) or they will insist that you move onto a BTL loan; with a BTL loan the rent will usually have to cover 1.25x the mortgage interest only.

A BTL loan is not like a residential mortgage. They are unregulated (I believe). You certainly don't have the same "rights" that a residential mortgage holder would have. Lenders take action much quicker to repossess on a commercial loan than a residential mortgage.

I suspect ... you've been rumbled and your mortgage company will now investigate you (already have I think) and will write to you to ask what you're up to and read you the Riot Act.

I don't know how the Chelsea BS usually manage these situations.

mitchaa

sillywoman wrote: »

hi can anybody help me please ? anybody ?

My tenant has lived in my house for 2yrs 2months and has been really good, however since she came off housing benefits seven months ago rent has been late four times anything between 2 days and 2 weeks (I pay her mortgage by cheque to the mortgage company every month) the payment has arrived a little late to the company about 4 times now and I have had letters saying "please pay within 14 days etc" howvever last month she had a serious personel problem and missed the payment (march) I cant afford to pay her mortgage as well as mine so I am in arrears for that house

You've lost me

How can your tenant be paying her mortgage? Surely your tenant is paying your mortgage?

Debt_Free_Chick

sillywoman wrote: »

hi can anybody help me please ? anybody ?

My tenant has lived in my house for 2yrs 2months and has been really good, however since she came off housing benefits seven months ago rent has been late four times anything between 2 days and 2 weeks (I pay her mortgage by cheque to the mortgage company every month)

Can we check this please ...... You own this house. You have a mortgage on it. You have a tenant in there and she pays rent to you. You then use that rent to pay the mortgage you have on the property?

Do you think Im in trouble with the mortgage company? it the first time Ive missed a payment with them, I lived in the house myself two years before I started the buy to let.How soon do mortgage companies act on a missed mortage payment ?

It's your house and your mortgage. You would have to pay that mortgage even if the property were empty.

You simply MUST keep the mortgage payments up to date.

If you are in arrears and owe the mortgage company money, you should call them and discuss what they will accept.

They won't care that you need the rent from your tenant to pay the mortgage.

But they will care that you've let the property without informing them.

Time to come clean and talk to them about your options.

tuggy

Don;t worry, i think it takes quite a few missed payments (not just late payments) before there is even a chance you could lose the house. Maybe its time to look at a new tennant? If she is missing rent then she is breaching the tennancy agreement and you can i think get rid of her?

Debt_Free_Chick

tuggy wrote: »

Don;t worry, i think it takes quite a few missed payments (not just late payments) before there is even a chance you could lose the house. Maybe its time to look at a new tennant? If she is missing rent then she is breaching the tennancy agreement and you can i think get rid of her?

Not until she's two months in arrears.

You can't get a court order to repossess (only) on the grounds of payment being late.

clutton_2

legally a Lender can take you to court to repossess your property if you have missed 2 months mortgage payments.

your own credit rating is bound to be disrupted as a result of your not paying the BTL mortgage on time

tbs624

The mortgage is YOUR mortgage not your tenant’s. You say that you lived there before you “started the buy to let” so does this mean that you did actually take out a BTL mortgage?

Anyone taking on a BTL needs to have sufficient funds to pay mortgage shortfalls - a tenant not paying on time, or indeed not paying at all, is one of the risks: you still have an obligation to pay your mortgage. You need to talk to your mortgage Lender as a priority, rather than trying to second guess what they are going to do.

Assuming that you do have the right sort of mortgage/mortgagor permission, you can then look at the fact that the tenant is in breach of her contract with you if she is paying persistently late: do you have a Tenancy Agreement in place?

Are you complying with other LL & T regs and have you notified HMRC that you are letting a property out? If you aren’t/haven’t then you may have other things to address too.

sillywoman

Hi thanks for all your advice !

Sorry yes it is my house my mortgage and she is the tenant ! think I was het up writing this thread.

My mortgage advisor sorted it all out for me I had to provide a tenancy agreement and prove I could get enough rent for th property in comparison to other houses in the area and I remember we had a letter back saying they were happy with it all.So I believe that is is a buy to let - but if my letters are still going there then the mortgage company must think I still live there !

God I feel sick !!! hope Im notin trouble !

LisbonLaura

IMHO there is a Trollish air to you 'silly woman' ........... though I could be wrong.... it has been known .

Anyone else feeling it?