MSE News: Buy-to-let borrowers hit by West Brom mortgage hike

"Thousands of West Bromwich buy-to-let tracker rate mortgage customers will be hit by rate hikes from 1 December..."
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Buy-to-let borrowers hit by West Brom mortgage hike

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  • About time. Vultures.
  • dimbo61
    dimbo61 Posts: 13,710
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    The increase in Interest can be offset against the profit the landlord makes from renting out the property but I guess they will just increase the rent to the tenants in the end.
    Will other lenders increase there tracker rate mortgages ???? even if the BOE base rate stays at 0.5% ?
  • Thrugelmir
    Thrugelmir Posts: 89,546
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    dimbo61 wrote: »
    The increase in Interest can be offset against the profit the landlord makes from renting out the property but I guess they will just increase the rent to the tenants in the end.
    Will other lenders increase there tracker rate mortgages ???? even if the BOE base rate stays at 0.5% ?

    Offset against rental income not profit. As there are other costs to consider. With no capital appreciation, for many LL's, may reduce the appeal of BTL. Which at the moment is undoubtably helped by low interest rates.
  • dimbo61
    dimbo61 Posts: 13,710
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    You are as always right Thrugelmir again.
    You can offset the LOAN Interest against rental Income as an allowable expense.
    With the huge increase in renting in the last 10/15 years will this increase which effects a few thousand landlords with several properties have any effect what so ever on the rental market ?
  • Atidi
    Atidi Posts: 943 Forumite
    Thrugelmir wrote: »
    ... With no capital appreciation, for many LL's, may reduce the appeal of BTL. Which at the moment is undoubtably helped by low interest rates.

    House prices are 5.4% higher than this time last year, and have also risen at the fastest annual rate since 2010, according to the latest figures released by Halifax...
    http://www.moneysavingexpert.com/news/mortgages/2013/09/house-prices-rising-faster-says-halifax

    and

    Student rent prices have soared by 8.5% in the past year,...
    http://www.moneysavingexpert.com/news/mortgages/2013/09/student-rent-costs-soar-by-8-5
  • silvercar
    silvercar Posts: 46,829
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    Phreaky wrote: »
    About time. Vultures.

    So who are the vultures? The banks for increasing mortgage rates when there has been no increase in interest rates?
    I'm a Forum Ambassador on The Coronavirus Boards as well as the housing, mortgages and student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected] (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Atidi
    Atidi Posts: 943 Forumite
    "These changes, which are permitted under the terms and conditions of the accounts, are a reflection of market conditions and the need for us to carry out our business prudently, efficiently and competitively."

    Is that W.B. speak for the fact that a few years ago they "announced a huge annual pre-tax loss of £48.8 million, prompting fears that it may need to be rescued by the Treasury, or bought out by another institution."?
    http://www.moneysavingexpert.com/news/savings/2009/06/west-brom-bs-secures-deal-to-protec
  • Pincher
    Pincher Posts: 6,552
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    West Bromwich claims it is to do with capital requirements; could be just an excuse, of course. We need more money, essentially.
  • Yeah, greedy landlords deserve what's coming.
    Except that ANYONE with a Base Rate Tracker mortgage should worry - if they get away with this, it will be residential borrowers next. Bank of Ireland did a similar thing earlier this year and their increase applied to Residential borrowers too!
    Remember these are Banks. Their mission is to make money by fair means or foul. Don't forget PPI, Libor scandal, self-cert etc.
  • brit1234
    brit1234 Posts: 5,385 Forumite
    If it gives better rates like they say to savers I welcome it.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
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