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My Landlord Missed His Mortgage Payment

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I thought you guys would like this.

I got a letter through the post today from one of those debt collection agencies as my landlord missed his mortgage payment this month!!!

I called them up to tell them i lived there but didn't have a forwarding address for him and gave them the letting agents number to call instead.

He hadn't told them he was letting the property out, so they said that they'd have to talk to him about it.

The really interesting point though was that his mortgage payment per month is £1835, but we pay £1150 in rent.

Surely that is the worst investment ever for him??????

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I thought you guys would like this.

I got a letter through the post today from one of those debt collection agencies as my landlord missed his mortgage payment this month!!!

I called them up to tell them i lived there but didn't have a forwarding address for him and gave them the letting agents number to call instead.

He hadn't told them he was letting the property out, so they said that they'd have to talk to him about it.

The really interesting point though was that his mortgage payment per month is £1835, but we pay £1150 in rent.

Surely that is the worst investment ever for him??????

yes... unless houseprices rise by 1000k a month, when HPI was running riot at 15% ->20 % houseprices were going up 1000ukp every couple of days, more in london. Of course if prices stop rising he is in trouble.

How much is the house worth? How much has it being going up in value?

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yes... unless houseprices rise by 1000k a month, when HPI was running riot at 15% ->20 % houseprices were going up 1000ukp every couple of days, more in london. Of course if prices stop rising he is in trouble.

How much is the house worth? How much has it being going up in value?

It was on the market for £350k, but actually sold to him in Nov for £286k.

Doubt the prices have changed much on the last 5 months around here

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It was on the market for £350k, but actually sold to him in Nov for £286k.

Doubt the prices have changed much on the last 5 months around here

What does his mortgage work out as (i.e. how much deposit did he put down)?

If I was you, I'd start packing some stuff!!! :unsure:

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I thought you guys would like this.

I got a letter through the post today from one of those debt collection agencies as my landlord missed his mortgage payment this month!!!

I called them up to tell them i lived there but didn't have a forwarding address for him and gave them the letting agents number to call instead.

He hadn't told them he was letting the property out, so they said that they'd have to talk to him about it.

The really interesting point though was that his mortgage payment per month is £1835, but we pay £1150 in rent.

Surely that is the worst investment ever for him??????

Something makes me think you had probably better start packing.

btw what happens to people caught letting out a property which was bought with a standard mortgage rather than a btl one? slap on the wrist/fine? I am just wondering

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Something makes me think you had probably better start packing.

btw what happens to people caught letting out a property which was bought with a standard mortgage rather than a btl one? slap on the wrist/fine? I am just wondering

Be nice to see a HUGE fine given. Might stop this fraud!

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I thought you guys would like this.

I got a letter through the post today from one of those debt collection agencies as my landlord missed his mortgage payment this month!!!

I called them up to tell them i lived there but didn't have a forwarding address for him and gave them the letting agents number to call instead.

He hadn't told them he was letting the property out, so they said that they'd have to talk to him about it.

The really interesting point though was that his mortgage payment per month is £1835, but we pay £1150 in rent.

Surely that is the worst investment ever for him??????

A likely story......

I guess you are aware that opening mail addressed to someone else is a crime? And people say landlords are dishonest.

Edited by Time to raise the rents.

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What does his mortgage work out as (i.e. how much deposit did he put down)?

If I was you, I'd start packing some stuff!!! :unsure:

Well, a 100% 286k mortgage for 25 years at 6% works out as around £1860 per month, so I guess that must be it.

Slightly worried I maybe moving soon, although I may buy it dirt cheap as a repossesion first!!! B)

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Something makes me think you had probably better start packing.

btw what happens to people caught letting out a property which was bought with a standard mortgage rather than a btl one? slap on the wrist/fine? I am just wondering

It's fraud.

Up to the lender whether the law gets involved.

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IO on 286k is about 1000ukp a month, so its not as bad as it sounds your LL has a repayment morgage which seems a bit crazy. If you have a postcode we can probably do some more analysis of average prices in the area....

Have you tried your postcode in upmystreet.com? It supports postcode areas so you can get a good idea of the local average price.

http://www.upmystreet.com/property/prices/

Edited by moosetea

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Well, a 100% 286k mortgage for 25 years at 6% works out as around £1860 per month, so I guess that must be it.

Slightly worried I maybe moving soon, although I may buy it dirt cheap as a repossesion first!!! B)

If the mortgage lender is now aware that the property is rented, could there be problems such as penalties and/or the bank moving the mortgage to a BTL one? Could be bad for the landlord's cash flow, which is already soundly negative.

Billy Shears

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The really interesting point though was that his mortgage payment per month is £1835, but we pay £1150 in rent.

Surely that is the worst investment ever for him??????

Him and thousands of other muppets - BTL WAS a good investment, so was goldmining in the Klondike if you got your timing right. The trouble is those who bought post 2003/4 are going to be in for a bit of a shock shortly :rolleyes:

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Something makes me think you had probably better start packing.

btw what happens to people caught letting out a property which was bought with a standard mortgage rather than a btl one? slap on the wrist/fine? I am just wondering

If nothing else it means you have breeched the terms of your mortgage contract and they can recall the loan straight away.

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IO on 286k is about 1000ukp a month, so its not as bad as it sounds your LL has a repayment morgage which seems a bit crazy. If you have a postcode we can probably do some more analysis of average prices in the area....

IO on 286K is about 1000ukp if the mortgage is at 4.2%, according to the BBC's mortgage calculator. As the original poster said, the full mortgage payment is about what a 6% IO mortgage would be. The truth is probably somewhere between the two extremes.

Billy Shears

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I didn't notice the letter wasn't for me until i'd opened it. It was in my post box.

That's what all crims would say.

I think NuLabour should lock you up for your crime & deport you afterwards as well!

I think you also should suffer the fate of other internet terrorists for posting your crime online to obviously encourage other postal crimes by other individuals.

At the end of the day, even if your story is true, all you need to do is pay the rent & you are protected for the length of your tenancy and even beyond that if you choose. If there's an EA involved, excellent as paying them direct will ensure you are definitely protected during your tenancy.

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I guess you are aware that opening mail addressed to someone else is a crime? And people say landlords are dishonest.

Which law is that then? - I don't think thats true.

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At the end of the day, even if your story is true, all you need to do is pay the rent & you are protected for the length of your tenancy and even beyond that if you choose. If there's an EA involved, excellent as paying them direct will ensure you are definitely protected during your tenancy.

Wrong. If the bank resposseses the property the tenant can be evicted even if they have paid the rent.

http://england.shelter.org.uk/advice/advice-288.cfm

Billy Shears

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Guest Guy_Montag

Which law is that then? - I don't think thats true.

I believe it is, I've certainly heard similar before. The laws on interfering with post are very strict.

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At the end of the day, even if your story is true, all you need to do is pay the rent & you are protected for the length of your tenancy and even beyond that if you choose. If there's an EA involved, excellent as paying them direct will ensure you are definitely protected during your tenancy.

Are you sure about this TTRTT? I was under the impression that if your landlord was repossessed, then the rental contract was worthless, since it was with the landlord and not the lender. I guess you could sue the landlord for failure to fulfull their side of the contract, but since they've been repossessed that probably means they've gone bankrupt anyway...

[fx: googles] Ah yes: see for instance this shelter page: if you have an assured shorthold tenancy then there are a small number of mandatory grounds for eviction, where the courts are required to evict. One of those grounds is repossession of the property by the lender, where you were informed in advance that the landlord used to live in the property.

So it depends...

cheers, Phil

Edited by pharm

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I believe it is, I've certainly heard similar before. The laws on interfering with post are very strict.

Guess it was Addressed to the renters actual rented address. Easy mistake to make though and wouldn't stand up in any court whatsoever.

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A likely story......

Naah, happened to me back in the mid 90's - the Landlord was one of these Middle class chancers with a big SUV and a crappy expensive clothes shop. Recieved a letter addressed to "the occupiers" advising us the house was being repo'd - first we'd heard of it...!

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Which law is that then? - I don't think thats true.

Ignorance is no excuse in law.

Wrong. If the bank resposseses the property the tenant can be evicted even if they have paid the rent.

http://england.shelter.org.uk/advice/advice-288.cfm

Billy Shears

Wrong and BS as usual. Actually maybe my post was too simple for you.

Yes if your set period of your tenancy is expired, the lender can give you two months notice to leave. But if you have time left on your tenancy agreement, you can stay for that time as long as you pay the rent.

And being evicted isn't simple, so keep paying the rent even if you have been given notice to leave and the lender will have to wait for you to leave or take you to court. Only a good plan if you only want to stretch it a few months.

So yes you will eventually be evicted, but sleep soundly for now.

Are you sure about this TTRTT? I was under the impression that if your landlord was repossessed, then the rental contract was worthless, since it was with the landlord and not the lender. I guess you could sue the landlord for failure to fulfull their side of the contract, but since they've been repossessed that probably means they've gone bankrupt anyway...

[fx: googles] Ah yes: see for instance this shelter page: if you have an assured shorthold tenancy then there are a small number of mandatory grounds for eviction, where the courts are required to evict. One of those grounds is repossession of the property by the lender, where you were informed in advance that the landlord used to live in the property.

So it depends...

cheers, Phil

Whoever takes over the property from the landlord also takes over the landlords responsibilities which are set out in the tenancy agreement.

This is the reason for the whole BTL markets existence and worth understanding for an understanding of the housing market in general.

Banks became willing to lend on BTL because of the Assured Shorthold Tenancy. It means they can and do force the landlord to use only an AST tenancy. If the bank needs to reposess, because of the AST, they can eventually sell the property vacant (where it will achieve the best price) after they have rightfully asked the tenant to leave.

The previous Assured Tenancy laws allowed the tenant to stay on indefinitely, which was unacceptable to banks as the property was not good security with that third party interest.

The ground above is interesting, but won't force a court to evict a paying tenant (on market rent) prior to the end of their tenancy agreement unless there were very special circumstances.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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