NatWest to review policy on landlords renting to benefit claimants
NatWest is reviewing its lending practices on landlords renting to benefit claimants with the charity Shelter.
The lender has hit the headlines for the wrong reasons for telling a landlord, Helena McAleer, that her mortgage had been revoked because she was renting to tenants in receipt of housing benefit. She reportedly had the choice of chucking the tenant out or paying a £2,500 early repayment charge.
A number of other lenders have the same policy, prompting Mortgages For Business managing director Steve Olejnik and the Residential Landlords Association to call for an end to this ”discrimination’ last week.
David Smith, policy director for the Residential Landlords Association, said: “With increasing numbers of benefit claimants now reliant on the private rented sector for a home we welcome NatWest’s decision to review its lending practices.
“The RLA continues to urge the rest of the industry to do likewise so that private landlords are better supported to house vulnerable tenants.”
NatWest was unavailable for comment.