Man who hosted Ukrainian refugees refused mortgage by Halifax over fears he could rent out spare room for cash
9 May 2023, 00:10
A homeowner who welcomed two Ukrainian refugees into his home has been refused a mortgage by a leading high street lender over fears he could rent out the spare room for cash.
Dominik Kaum has been hosting a Ukrainian mother and daughter in his annexe since July 2022 after they fled the war-torn country following the Russian invasion.
However, when the time came for Mr Kaum to renew his mortgage, high street lender Halifax rejected his application.
The bank claimed there was a 'risk' Mr Kaum would begin renting out the annexe, adjoining his property, for financial gain.
Halifax added that given the building was being used to host the refugees, there was a 'significant risk' Mr Kaum would go on to rent it out for commercial gain.
Describing the annexe as a small 'granny' flat, the BBC's Money Box began an investigation in light of Mr Kaum's claims.
Halifax is reported to have since apologised for what it describes as a 'confusion' and offered Mr Kaum a mortgage deal.
However, Mr Kaum asserts that the renewed offer and apology was only put forward after they were approached by the broadcaster.
Read more: Ukraine accuses Russia of using phosphorous bombs in bid 'to destroy' Bakhmut
It stands in contrast to the mortgage lender's 'emphatic' support for the Homes for Ukraine scheme - one that aims to provide homes for displaced Ukrainians.
Taking to Twitter, Mr Kaum wrote: 'It seems disingenuous at best and cynical at worst by @halifaxbank to publicly proclaim support for Homes for Ukraine on their website and communications, and treat your customers like that.
'Halifax is emphatic in its support for #HomesforUkraine on its website. However, it has today refused our mortgage renewal, because we are providing accommodation to a Ukrainian family under the scheme.'
Mr Kaum added that 'fortunately' the refusal was overturned, but if it hadn't been, he 'would have moved from a fixed-term mortgage to a higher rate and cost us over £9,000 a year'.
Instead Halifax claimed the valuer was not aware of the informal nature of such a tenancy where the scheme was concerned.
It added it was instead under the impression the annexe was being let.
