Mortage Interest Rate while renting house out

Becky789

I own my house and have a Fixed Rate mortgage with a popular Building Society on the property which is due to run out next year. Two years ago I became ill and was unable to work so moved in with my parents and got permission to rent my house out off the Building Society. My interest rate did not change at this stage and I now renting out the property to a tenant, which just about covers the mortgage.

I have now received a letter informing me that from now on mortgages on houses that are rented out will now be subject to an extra 1.5% interest in order to "ensure that costs of the services we providea re met by the customers that use them".

Are they allowed to do this when I am on a fixed rate mortgage and they did not increase the interest rate when the house rental was first agreed? My rent will no longer cover my mortgage as it will substantially increase.

Many thanks for your help in advance.

Becky

Thrugelmir

Is your lender the Nationwide?

If so there's a long thread running on this topic.

Becky789

Yes, it is the Nationwide. Thanks for pointing me to the thread, I've had a read of it.

Thanks again