I rent my home, so I can't get a mortgage break - what can I do?

[Lou]

I rent my home, so I can't get a mortgage break - what can I do?

I wonder. Please discuss.

 

[telectrix]

think your landlordmay get the mortgage break. whether he'll relax the rent accordingly, nobody knows. what is certain is that he can't evict you. but the back rent will still be due when it's all settled down.

 

[Lou]

Ta mate. Was a general question not for me, just starting a few common questions/threads in the new forum. Please feel free to add your own.

 

[Zerax]

What happens if the landlord doesn't have a mortgage on the property, but uses your rent money to live on... how will he afford to live ? As far as I've heard... there's no provision for help for him...

 

[Lou]

He needs think himself lucky and remortgage or sell lol

I assume in this scenario he must have two properties both paid up in full. I don't think he's therefore somebody I'd be personally worrying about finance wise.

 

[DPG]

He needs think himself lucky and remortgage or sell lol

I assume in this scenario he must have two properties both paid up in full. I don't think he's therefore somebody I'd be personally worrying about finance wise.

I see your point, but it's a little unfair. Especially if the property is basically his pension plan. If he sells then no pension.

 

[Zerax]

He needs think himself lucky and remortgage or sell lol

I assume in this scenario he must have two properties both paid up in full. I don't think he's therefore somebody I'd be personally worrying about finance wise.

That's nice Lou... he's 84, how's he going to get a mortgage ? Maybe the Royal British Legion could help though... with him being a veteran. Mind you... its probably only a matter of time before the virus gets him anyway.

 

[Baddegg]

There will be a massive fallout globally if and when we get through this.....even if a landlord can’t evict but just defers the rent, most people that rent are living month to month so there will be no way of repaying potentially a huge debt, if the landlords property is mortgaged the mortgage company won’t wait indefinitely for they money so the property gets repossessed and the tenants are still homeless, this is a failure of governments over the last 30/40 years in nor providing adequate amounts of social housing instead leaving the problem to the private sector,

 

[Zerax]

...this is a failure of governments over the last 30/40 years in nor providing adequate amounts of social housing instead leaving the problem to the private sector.

I don't agree that it should be the government (hence taxpayer) who should provide for social housing... I think everyone should make their own provision for themselves and their family. Fine, some may need some help... but that should be the exception, rather than the norm.

 

[westward10]

Can we keep this on topic and not turn it into a political debate.

 

[Baddegg]

I don't agree that it should be the government (hence taxpayer) who should provide for social housing... I think everyone should make their own provision for themselves and their family. Fine, some may need some help... but that should be the exception, rather than the norm.

That’s my point though @Zerax that haven’t been providing housing and when the SHTF this is what happens everyone loses......no social housing means astronomical house prices and by default astronomical rents meaning people are trapped and at the mercy of a landlord, no social housing invariably leads to lower quality living standards.......sorry @weatward I was halfway through replying ?

 

[westward10]

No more last word goes to @Baddegg

 

[Dan]

Buy-to-let mortgages shouldn't have the mortgage relaxed IMO.

It's hitting the self-employed HARD.

Those who have two paid off properties need come back to the real world. They've done well, sell one, live off that income. Invest it in Gold. It's going rocket even more. Way more than savings now the interest rates are at record lows.

This thread is for those who have one home, and limited income, and perhaps that's going to get worse.

 

[EalingBadger]

Buy-to-let mortgages shouldn't have the mortgage relaxed IMO.

It's hitting the self-employed HARD.

Those who have two paid off properties need come back to the real world. They've done well, sell one, live off that income. Invest it in Gold. It's going rocket even more. Way more than savings now the interest rates are at record lows.

This thread is for those who have one home, and limited income, and perhaps that's going to get worse.

If BtL mortgages are not relaxed then BtL landlords will not be in a position to relax their stance regarding when the rent is due.

Many "landlords" have just one or maybe two rentals, they have either become landlords accidentally through circumstances, or felt forced to invest in property as a desperate measure to protect their future pension when other investments have failed them, and they often live as hand-to-mouth as anybody else. Unless the rent comes in then they cannot pay the mortgage and all of the other expenses (more than is typically obvious to the casual outside observer as many of these are unseen).

I know it is popular to have a pop at them, but they really are just ordinary people dealing with the day to day difficulties of how to survive in a hostile financial climate just the same as the rest of us. They are not rolling around in gold-plated Bentleys and spending six months of the year in the Caribbean.

The government has made it clear that any landlord that is granted a payment holiday will be expected to pass it on by way of a reciprocal arrangement for the benefit of the tenant.

Of course, like all measures so far announced by HMG in response to the current crisis, there are examples of circumstances that are not completely covered off. A big one, of course, is the case of the self-employed (amongst which I count myself). Another is the case of the 84 your old landlord who is reliant on the income from his or her's single rental property to live off.

Life is a sh*t sandwich.

 

[Simon47]

Back to the original question ...
Speak to your landlord ASAP. Any sensible landlord will want to work with you to find a solution that you can both manage with - I've proactively been in touch with one tenant who works in a non-food retail situation, to tell them not to worry too much and get in touch if there's a problem so we can work it out.
I can't speak for others, but I would not want to evict a tenant in such circumstances. Firstly, as a person, I would not want to be making someone homeless. Secondly, from a purely business PoV, now is not going to be a good time to find a new tenant.
I'll confess that I'm very lucky in having good tenants, at least one of whom is in a very secure job, and I also have a secure income - so I have considerable flexibility. Others will be different, and as mentioned above, some of them will be relying on the income from their rentals as a pension (and that is my future plan) - which will limit their flexibility.
The thing is, there is no one-size-fits-all, and it's certain that not all tenants won't be able to pay, and it's certain that not all landlords can afford to waive the rent for an unknown length of time.
Selling a property isn't really an option either - I think the market is going to be very difficult. For one thing, the people most able to purchase are going to be larger landlords with a bit of cash behind them - so one side effect would be to transfer properties from smaller landlords to larger ones with a "less personal" approach to management.

 

[pirate]

This is a very complicated problem, which, as a former landlord i know well.
Evicting a tenant who has hitherto always paid the rent promptly is not a good idea anyway, and trying to find another one is going to be tricky, especially with jobs being lost all over the place.
I was approached by a chap yesterday who heard that i had a place to rent, and because he is now out of work, but well-to-do, he offered me a year's rent in advance. Lucky man, being able to do that, and lucky me if I had a place to rent to him, but I now live in my former rental property due to numerous circumstances which made it less than viable for me to continue to rent...these circumstances are largely due to changes made by the government, so i will not list them here as this is not a platform for politics. However, everybody has different circumstances, so there is no broad-brush approach to fix the problems faced by so many, tenants and landlords, in the current climate.