Landlords who have mortgages with the West Bromwich Building Society are
probably crying into their cups of tea about now. Despite the fact the Bank of
England base rate has not shifted above 0.5% for four years, the West Bromwich
Building Society has decided to hike the interest rate on their buy to let
tracker mortgages by a whopping 2%. This unwelcome change will come into
effect on December 1st.
The Building Society’s Explanation…
According to representatives from the West Bromwich Building Society, the
interest rate has been increased as a result of ‘market conditions’. Seems
unlikely, but there you go. Not all landlords will be affected, however—only
those who own multiple properties and who took out a tracker mortgage with the
West Bromwich Mortgage Company, a former specialist subsidiary of the current
West Bromwich Building Society, are going to be hit by the new increase in
interest rate.
Mortgage Brokers Express Surprise at the Move
Leading mortgage brokers are surprised that the building society has felt the
need to raise interest rates when the Bank of England Base Rate continues to
remain at an all-time historic low. Landlords won’t be too happy either—a 2%
interest rate hike will add £125 per month to a £100,000 loan, which is no
small amount if your profit margins are quite tight. But the best way to deal
with the bad news is to vote with your feet. Start looking around for a better
deal elsewhere and pray that the other high street lenders don’t decide to
follow suit.
