MORTGAGES AND RULES - PLEASE READ THIS AND HELP!!

[Mytwopenceworth]

I have been told that the reason most private rented wont take dss is because there is a clause in a lot of mortgages that prohibits it. This seems shite to me! is it true? I dont have my own house any more, so i cant look at paperwork for myself but i fail to see how it can possibly matter if you are renting out a property that you have a mortgage on whether the money comes
1 from the tenants paypacket
2 from the council direct to landlord
3 paid to the tenant from the council then forwarded to landlord by tenant!!

am i being B.S.'d by letting agent?

[daisy1999]

I don't know about the mortgage but some insurers won't cover the property if it's let out to DSS.

[Mytwopenceworth]

You're kidding?!! what on earth are they implying!! if you are in financial hardship you are a, what? untrustworthy or dangerous person? that's disgusting!

[julienetmum]

When we rented a room our we wouldn't take DSS becasue previously it had taken months for the tenants claim to be sorted and so we didn;t get paid.

[Mytwopenceworth]

thanks for that julie. did you get your rent in the end cos claims are backdated to date of application, so hope you got big lump sum in the end! i hope you would reconsider in the future because most claims really dont take months and it is so hard when it seems like you are not wanted anywhere just because you are poor!!!

To my original question - does anyone know if there is a clause in mortgages that prohibits renting to people who require help to pay in the form of housing benefit?

[curlysmum]

I don't think there is a clause in your mortgage terms, but presumably you would have to inform your mortgage lender you are letting the property but I do know the insurers for buliding insurance won't accept dss or housing association tenants as the lady who owned the flat upstairs from me had to arrrange special insurance to let to dss and housing assoc and it was very much more expensive as there is judged to be grater risk of fire etc , I think and maybe wrong she said its because the property would be occupied all the time as opposed to when people are out at work and greater risk of fire/accidental damage. Then I think your mortgage lender have to be happy with the building cover policy before they give the go ahead for you to let out.