Everyone is right that it's perfectly legal and normal to rent a house that isn't yet paid off. In fact, without doing research I would conservatively guess that way over 50% of the properties being rented are not paid off.
People rent homes as investments. If you have extra money you can put it in the bank, buy stocks or bonds, purchase a property, etc. When you buy a property you have the right, even if you still owe a mortgage on it, to do with it what you please within the law. (As stated in another answer the big exception is if you lied to the bank about your intent up front. The bank typically gives lower rates if you buy the home with the intent to live it rather than rent it.)
So, yes, the renters are paying the mortgage of the owner. In doing so, the owner is building equity and hopefully getting a good return on his investment. Sometimes rent doesn't cover the landlord/owner's mortgage expenses and sometimes it does. This is why, as renter, it is important to make sure you pay your rent on time so that the landlord can pay his bills on time.
Renting a house is illegal under the following circumstances. 1. "owner occupied fraud". This occurs when a borrower intended to own the property as a rental, but represented to the lender the house would serve as a primary residence. 2. State housing programs. Normally state housing programs require you live in the home. If you cease to occupy the home they will give you the choice of refinancing into a different type of loan or selling the property.
Life changes, lenders are usually very tolerant of people renting out houses they once occupied unless a late payment occurs or the lender was originally defrauded.
Not in any way illegal at all. There is no license to rent, and yes, he is paying their mortgage. Most likely and then some.
The renter has nothing to do at all with the owner's financial situation in regards to the home. The LL does not have to disclose their mortgage status.
She would desire permission off the loan lender, that would advance her loan money. The hire would additionally be taxable. this is not any longer unlawful which you will hire a components off your mum. The council housing benefit human beings will make extra tests to confirm this is not any longer a rip-off, although this is executed. Get a e book from the library or Amazon with a identify like 'the thank you to be a Landlord' or an 'Idiots instruction manual to being a Landlord'.