According to the Council of Mortgage Lenders, more than 40 thousand people lost their home in one year due to repossession of property. These figures include the buy to let insurance, as well as the landlords’ repossessions. Currently, there is an increasing need amongst the tenants to be aware of their unscrupulous landlords who rent out their properties without notifying mortgage lenders.

Therefore, it is important that before choosing a residence for yourself, ask your landlord certain questions about their financial position. Since there is no other way of finding out whether there is a problem or not, it is important that you take adequate precaution before deciding to rent their home. Thus, if you do not want to be suddenly thrown out of the house due to non payment of residential mortgage, make sure you find out whether the landlord has buy to let insurance coverage on the house or not.

If property owner possesses a buy to let insurance for his property, the tenants cannot be evicted (even if the property has to be repossessed). The only thing that would happen is that the possession of property would be transferred to the mortgage lender and the tenant would have to pay the rent to the mortgage company instead of the landlord. Therefore, practice your own diligence and choose homes that are insured by buy to let insurance only.

This entry was posted on Wednesday, February 25th, 2009 at 3:12 am and is filed under Buy to let insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.