Thousands of buy to let landlords with tracker mortgages are up in arms
against the West Bromwich Building Society’s decision to raise its tracker
rate by 2%, even though the Bank of England base rate hasn’t moved in four
years.
Building Society Attempts to Justify Rise
According to the BBC, the West Bromwich Building Society is justifying the
rise by saying it has no choice because it now costing more for them to fund
tracker mortgages. It also claims there is a clause in its terms and
conditions that allows it to alter interest rates—something many customers are
disputing.
Landlords Fight Back
One landlord fighting against the building society is the equivalent of David
trying to take a stand against Goliath. But it isn’t just one landlord
fighting back. More than one thousand aggrieved buy to let landlords from an
online property forum have joined forces. Many have already sent their cases
to a firm of solicitors, who are also representing customers unhappy with the
Bank of Ireland (who also raised their rates some time ago).
Many landlords fear that other lenders will jump on the bandwagon and raise
their rates and mortgage brokers are advising anyone affected by the current
increases to contact the FCA via letter. The buy to let mortgage sector isn’t
regulated, but lenders are, so it is worth complaining.
Landlords: have you been affected by the West Bromwich Building Society or
Bank of Ireland rate hike? If so let us know whether you are taking action to
try and force the lenders to do a ‘u’ turn
