It's not just homeowners and those with a mortgage that are feeling the crunch in the current economic climate! Tenants too are facing difficulties, either through circumstances that mean they can't find enough money for the rent each month or they face the prospect of eviction because their landlords can't pay their mortgage.
Often it's the mounting burden of accumulated, unsecured debt or changes to income levels and employment that can lead tenants into a position where they may face eviction. Putting unsecured debts into a debt management programme can free up income to enable the tenant to pay the rent and avoid losing their home. However, a Debt Management Programme is not a long term solution. It does provide some breathing space to allow you start regaining control by prioritising household bills first (rent, gas, electricity, council tax) and offering sustainable but reduced payments to your unsecured creditors (personal loans, credit cards, HP agreements).
This can be achieved through an IVA - essentially a formal agreement with your creditors that will last for 60 months. Affordable proposals are discussed with your various creditors, which when agreed means that interest and debt charges are frozen. The IVA must be supervised by an Insolvency Practitioner and the agreed payment is legally binding. Upon completion of the IVA you will be considered ‘debt free' and any outstanding balances are written off.
A similar arrangement, called a Protected Trust Deed, is available for tenants north of the border. Under Scottish law, if you do qualify, you could write off up to 90% of your debt and pay the remainder in 36 affordable monthly instalments. It's similar to an IVA as it too must be supervised by a licensed Insolvency Practitioner who is responsible for negotiations with your creditors and ensuring you keep to the terms of the Trust Deed. If the bulk of your unsecured debt lies in credit cards or personal loans taken out before April 6th 2007, it may even be possible for Credit Issues to clear the entire outstanding balance.
Even for tenants who have consistently made rental payments, many have had to move house following repossession notices. In many cases, the first any sitting tenant or tenant about to move into a property knows about the situation is when they find bailiffs in their home or that the locks have been changed. The Civil Protection Rules are changing to give tenants slightly more rights in these circumstances. Mortgage lenders intending to repossess will now have to send notice to tenants within five days of receiving notification of a court hearing date (which is often several weeks ahead) rather than being informed 14 days before the actual hearing date itself as is currently the case. Practically speaking, that should mean that tenants ought to get around seven week's notice of a possession hearing. But that could depend on what type of mortgage your landlord has. If it's not a buy-to-let mortgage, the tenant could still not get any notice of possession at all.
Best advice is to always open mail addressed ‘To the Occupier', as this may include notice of any possession hearings. Make sure your landlord has permission from their lender to rent the property out, otherwise the lender does not have to recognise your tenancy at all. Try to find out as much you can about your prospective landlord and their mortgage status before taking up a tenancy and if you were already living in the premises when the mortgage was taken out, the landlord's lender may take you on as a tenant and allow you to pay rent to them directly.
Please take a moment to visit mortgage claims and take the two minute test. Find out if you qualify to claim compensation and change your circumstances.
Often it's the mounting burden of accumulated, unsecured debt or changes to income levels and employment that can lead tenants into a position where they may face eviction. Putting unsecured debts into a debt management programme can free up income to enable the tenant to pay the rent and avoid losing their home. However, a Debt Management Programme is not a long term solution. It does provide some breathing space to allow you start regaining control by prioritising household bills first (rent, gas, electricity, council tax) and offering sustainable but reduced payments to your unsecured creditors (personal loans, credit cards, HP agreements).
This can be achieved through an IVA - essentially a formal agreement with your creditors that will last for 60 months. Affordable proposals are discussed with your various creditors, which when agreed means that interest and debt charges are frozen. The IVA must be supervised by an Insolvency Practitioner and the agreed payment is legally binding. Upon completion of the IVA you will be considered ‘debt free' and any outstanding balances are written off.
A similar arrangement, called a Protected Trust Deed, is available for tenants north of the border. Under Scottish law, if you do qualify, you could write off up to 90% of your debt and pay the remainder in 36 affordable monthly instalments. It's similar to an IVA as it too must be supervised by a licensed Insolvency Practitioner who is responsible for negotiations with your creditors and ensuring you keep to the terms of the Trust Deed. If the bulk of your unsecured debt lies in credit cards or personal loans taken out before April 6th 2007, it may even be possible for Credit Issues to clear the entire outstanding balance.
Even for tenants who have consistently made rental payments, many have had to move house following repossession notices. In many cases, the first any sitting tenant or tenant about to move into a property knows about the situation is when they find bailiffs in their home or that the locks have been changed. The Civil Protection Rules are changing to give tenants slightly more rights in these circumstances. Mortgage lenders intending to repossess will now have to send notice to tenants within five days of receiving notification of a court hearing date (which is often several weeks ahead) rather than being informed 14 days before the actual hearing date itself as is currently the case. Practically speaking, that should mean that tenants ought to get around seven week's notice of a possession hearing. But that could depend on what type of mortgage your landlord has. If it's not a buy-to-let mortgage, the tenant could still not get any notice of possession at all.
Best advice is to always open mail addressed ‘To the Occupier', as this may include notice of any possession hearings. Make sure your landlord has permission from their lender to rent the property out, otherwise the lender does not have to recognise your tenancy at all. Try to find out as much you can about your prospective landlord and their mortgage status before taking up a tenancy and if you were already living in the premises when the mortgage was taken out, the landlord's lender may take you on as a tenant and allow you to pay rent to them directly.
Please take a moment to visit mortgage claims and take the two minute test. Find out if you qualify to claim compensation and change your circumstances.