Man has mortgage refused ‘for internet hosting Ukrainian refugees’
A household who has been internet hosting Ukrainian refugees in an annexe connected to his home had been rejected for a mortgage renewal because of “a risk” it posed that the area could possibly be rented out for business achieve sooner or later, the BBC reported.
Dominik Zaum and his household, who opted into the Government’s Homes for Ukraine scheme when it launched final yr, have been internet hosting two Ukrainian refugees, a mom and her daughter, since June 2022.
The Help for Ukraine scheme was launched final March to assist home refugees who fled the nation following Russia‘s invasion in February 2022.
To assist with housing bills, eligible hosts obtain £350 per 30 days for the primary 12 months and £500 for every month after that for a most length of two years.
But when Mr Zaum’s mortgage got here up for renewal this yr, his utility was rejected by Halifax because of having the household residing in his annexe area.
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He instructed the BBC: “We were very surprised by this because we’ve never rented it out, we’re not renting it out now… and we have no intention of renting it out in the future.”
Despite talking straight with the valuer that Halifax despatched earlier than and when he got here to evaluate the home, Mr Zaum stated: “[Halifax] stated they may not present us with a mortgage as a result of we had been offering lodging to a Ukrainian household and due to this fact there was a big threat that we might lease out the room commercially sooner or later.”
Mr Zaum then raised the difficulty twice by means of his mortgage dealer, however it was solely when BBC’s Money Box acquired involved that the agency issued an apology and a brand new mortgage deal.
Mr Zaum instructed the BBC: “It could be very unlucky that it took Money Box to get a response.”
According to Money Box, Halifax said it is “very sorry for the confusion” and could be very supportive of the Homes for Ukraine scheme and that it would not decline a mortgage utility on this foundation.
It stated: “Having reviewed the appliance once more, we have now issued a suggestion and the appliance will proceed as regular.”
Halifax said the valuer did not appreciate the informal nature of the tenancy, and this was reflected in their report where they noted the property was unsuitable for these lending purposes and given a zero valuation.
Mr Zaum said: “We didn’t know on the time if different banks might need reacted equally. We have since secured a mortgage with one other financial institution so, luckily, it has not had any affect on our funds.”
He added: “Had we not been capable of safe a brand new mortgage we might have moved from a fixed-term mortgage to a better charge and value us over £9,000 a yr.”