Amidst all the news out there at the moment regarding crippling interest rates being the main cause of mortgage repossessions, I came across an article that shared the news that it is not only individuals that are struggling to pay their mortgage, but landlords are suffering repossessions as well.

This is one group of people that I had not thought about and after reading the article, I realised that no one is immune to the current mortgage climate that we find ourselves in.

Although I don’t know a landlord that has had any of their properties repossessed, I do know landlords that have property portfolios that are mortgaged. The more I thought about this, the more I realised that landlords rely on their tenants to pay their rents so that landlords in turn can service their mortgages. If for some reason the tenant cannot pay their rent, then the landlord will struggle to pay their mortgage.

This results in a domino effect as the landlord going into mortgage arrears gets red flagged by his/her lender and if this results in a court order for repossession, then the tenant eventually will have no home to live in.

I guess the same goes for landlords with mortgages as it does for individuals, if you find yourself heading towards mortgage arrears, do not delay in talking to your lender and open a dialogue that can explore what (if any) solutions can be found to avoid being repossessed.