Buy to let customers of the West Bromwich Building Society may have had a nasty surprise on Monday. The lender announced that it will increase rates on a number of BTL tracker products by as much as 2% from 1 December 2013. This change could affect up to 6,700 West Bromwich customers.
This is despite the fact that the Bank of England base rate has remained stagnant at 0.5% since March 2009, and is unlikely to rise again for at least two years.
If you are a West Bromwich customer, it may be worth your while digging out your paperwork and reading the small print. It is likely that, if your mortgage is a tracker that you took out between 2006 and now, you could face an increase in December.
If you think you may be affected by this, then it would be worth your while checking out what other options are available to you. There are some really attractive BTL mortgage products available, and by using a buy to let broker, like Commercial Trust, you can be sure that we will undertake a comprehensive product search across a wide range of buy to let lenders to find a product which matches your circumstances. Speak to one of our experienced BTL mortgage advisors on the numbers above.
Remember, it can take several weeks for a new purchase mortgage to complete, but to remortgage is generally a much faster process. We have achieved this for customers in as little as 10 days, but it’s as well to start the process now, so come December, you’re not left with a much higher mortgage payment to meet.
You may remember that the Bank of Ireland tried a similar trick earlier in the year. They had to back-track quite a lot due to customer complaints, but still some 12,300 Bank of Ireland customers suffered an interest rate hike. The Bank of Ireland was increasing rates for residential customers as well as their BTL customers: the reprieve was for their residential customers only. Don’t rely on a back-track from West Bromwich!