My mortgage company, The Mortgage Works, have been lending on this property for almost 8 years with no problem.
Late last year they accused me of living in the apartment, which I can assure you I haven’t! Not slept a single night in there since it went to BTL! And requested a copy of the current tenancy agreement.
I was between tenants as doing a few repairs after 8 years, but quickly put the apartment on OpenRent and used their Rent Now service. As you know, the market is insane right now so I had a tenant in a matter of days. Sent the contract to the mortgage company.
They’ve replied with this:
We have carefully reviewed this and unfortunately, we are unable to accept it as it does not comply with the terms and conditions of your mortgage with us for the following reasons:
- Missing reference to the Housing Act 1988
- States that a Business or trade can be run at the property with the landlords consent- this must not be allowed
- Missing a clause stating: No Subletting allowed
I contacted open rent and their reply was:
Our standard AST references both the Housing Act 1985 and 2004.
Subletting is dealt with in the Welsh legislation by “Dealing” which is at term 26 of our contract. Dealing includes creating a sub-tenancy or sub-licence, transferring the contract to another or taking out a mortgage on the dwelling. Dealing is only allowed as expressly permitted by the contract."
Now I’m a bit lost. I have this weird feeling The Mortgage Works are trying to get rid of me as a customer for god knows what reason?! I’m not even fixed on a low rate.
Who is right or wrong here? Is OpenRent missing a trick not expressly mentioning some of these things in their contract? Or is my mortgage company being unreasonable?
Any help be appreciated,