Mortgage Arrears – Where Do You Stand?

A new protocol for mortgage lenders has just been introduced which means that lenders are not obliged to give notice to tenants about a landlord’s mortgage arrears. But, as a tenant, where exactly does that leave you?

Well, if you discover that your landlord is in arrears, you must contact the mortgage lender immediately and find out what their policy is. If you vacate the property just on the basis of a letter received from the lender and then your landlord pays all the arrears, you could find yourself liable to be sued by your landlord. If however, the lender confirms that the property is to be repossessed, try and negotiate with them and see if you can pay rent to them directly instead.

If you are instructed to leave the property by a bailiff, you must comply with their demand. You should receive six weeks’ notice but recently a tenant only received five days’ notice so be prepared! Of course, you are entitled to compensation for the inconvenience caused. We can return your deposit to you directly, as long as you’ve given a waiver to us, but if not, you will have to take the landlord to court to get your deposit back.

Unfortunately, we cannot give any specific advice to tenants as this would be a conflict of interest but it goes without saying that we will help you find a new home as quickly as possible.