Thousands of landlords across the UK have been hit by an increase in the base rate of one of West Bromwich Building Society’s most popular products.
Around 6,700 rental property owners who hold buy to let (BTL) mortgages will now face a two per cent rise in the amount they pay back annually from December 1st.
Officials at West Bromwich Building Society argued the hike is a “reflection of market conditions” but there have been criticisms it is simply following on from the Bank of Ireland, which was the first to raise its BTL rate a few weeks ago.
George Spencer, chief executive at Rentify, told the BBC landlords will be “reeling” from the news and this will likely mean extra costs will simply be passed on to the tenant, which will make life even more unaffordable for those letting accommodation
“Landlords with other lenders will be concerned that they will follow suit so it is important to be vigilant,” he added.
These rises come despite a record low 0.5 per cent interest rate set by the Bank of England.