UK Property in news
State-backed lender NatWest told one of its landlord customers to throw out a vulnerable tenant claiming housing benefits or stump up thousands of pounds in early repayment charges and find another lender – after digital broker Habito admitted incorrectly advising the customer
Landlady was reduced to tears after NatWest said she had breached her mortgage terms by letting her two-bedroom property in Belfast to a tenant in receipt of support from the state.
The 35-year-old was given the stark ultimatum of making her tenant homeless or footing a £2,500 bill to leave the NatWest deal, after asking for a further advance from the lender.
The tenant is an older woman, who suffers from mental health problems and would likely struggle with the moving process, according to Landlady.
A spokeswoman for the lender said: “The bank has specific lending criteria and is not able to offer mortgages in certain circumstances, including where the applicant or broker has advised they want to let the accommodation to Department of Social Security tenants.
“There are specialist providers who are better suited for customers in this circumstance.”
Habito admitted that it should not have advised McAleer to take out a deal with NatWest.
One in five of landlords said their mortgage provider wouldn’t let them rent to people who were on benefits. So this is not just Natwest issue.