Repossession by your landlord’s mortgage lender

If you're a tenant or lodger of a private landlord, you could find yourself facing eviction if your landlord falls behind with their mortgage payments.

If your landlord falls behind with their payments, you might have:

• had a visit or letter from the lender letting you know that your landlord is in arrears with their mortgage repayments and that the lender will be seeking possession of the property

• opened letters addressed to the 'occupier' or 'persons unknown' giving details of a court action

• received a letter from sheriff officers giving a date when they will repossess the property.

If you’re facing eviction because of your landlord’s mortgage arrears, you should get advice. Find out how to get advice from a Citizens Advice Bureau.

Do you have a right to stay in your home

If your landlord falls behind with their mortgage payments, their mortgage lender can start court proceedings to repossess the property. You will have a right to stay in the property even after the lender has repossessed it. After the lender has repossessed the property, they must take separate court or tribunal action to evict you. The mortgage lender must get an eviction order from the court or tribunal.

How long you can stay will usually depend on what type of tenancy you have whether the mortgage lender has to follow your tenancy agreement. This is also known as the tenancy being binding on the lender.

When the tenancy is binding on the lender

If the tenancy is binding on the mortgage lender, they must follow the legal process written in your tenancy agreement to end your tenancy. This is usually the case if:

• you already lived in the property when your landlord bought the

• you moved in as a tenant before the mortgage was taken out

• your landlord’s lender agreed to the tenancy.

You can find out when the mortgage was taken out by asking the lender or finding out from the Registers of Scotland. The date of the mortgage will also be written in the court summons.

You can give the mortgage lender written proof of the date your tenancy began. For example, a written tenancy agreement or letter from the local authority housing benefit section.

It’s likely that the mortgage lender will not want you to stay in the property indefinitely once it has been repossessed. However, they must follow the same process to evict you as a landlord would. They can end your tenancy by giving you notice as written in your tenancy agreement and getting an eviction order from the court or tribunal.

Find more information on eviction from your home on the Shelter Scotland website.

When the tenancy is not binding on the lender

If your tenancy began after your landlord took out their mortgage, the mortgage lender will not normally have to follow your tenancy. This is because mortgage agreements don’t normally let owners rent out their property. Unless the lender has agreed to your tenancy, they can ask the court or tribunal to void it.

They must still get a court or tribunal order to evict you.

If you are not sure about which type of tenancy you have and if your tenancy is binding on the lender, you should get advice. Find out how to get advice from a Citizens Advice Bureau.

If you’re at risk of becoming homeless within 2 months, you can make a homeless application to your local council. Get more advice if you're homeless or at risk of homelessness. 

Delaying repossession of your home

If you have notice of court proceedings let the lender know as soon as possible that you’re a tenant. You can try to negotiate with the lender to get more time to find somewhere to move to.

If you want to defend the court or tribunal action because you think the lender has not followed the correct procedure to end your tenancy, you should get legal advice. Find out how to get help with a legal case.

If you think that you have been discriminated against because of disability, gender reassignment, pregnancy and maternity, race, religion or belief, sex or sexual orientation, or that your human rights have been infringed in the course of possession proceedings you should seek advice.

To find out more about discrimination, see our discrimination in housing pages.

If the sheriff officers have changed the locks

If you were not aware of proceedings and your locks have been changed you should get legal advice. Find out how to get help with a legal case.

If you’re homeless or about to be made homeless because of your landlord’s mortgage arrears, you can get help from your local authority.

For more information about the help your local authority can give you if you’re homeless, see If you're homeless or at risk of homelessness.