Nationwide Mortgage and Holiday Let

tagfcuk

I have owned a holiday let for 5 years now and have had a mortgage with Nationwide for all that time.
When I got the first mortgage deal I went through a broker and got a fixed 2-year deal. When I got the second mortgage I went to Nationwide directly and submitted copies of accounts showing income and expenses relating to the property. The source of revenue was clearly list on the application.
Two and a half years later I get a letter from Nationwide saying that I have never told them I was renting the property and they are going to increase my mortgage from by 1.5% (effectively doubling the repayments).
The letter is strongly worded and is very accusing and aggressive in tone. I have responded and asked questions why they have overlooked my income submissions but they just return standard mail merge letters.
Ironically I applied for mortgage with HSBC but because I don't rent the property enough they will not consider the income from the property (but will the cost) whereas Nationwide say I rent too much, ie >18 weeks (on average I rent about 20-21 weeks) so I have to pay the premium.
Is this just a case of Nationwide trying to squeeze more margin, or someting bigger here that others have encountered? How can they justify the premium?

Thrugelmir

The 1.5% charge is standard across the board. So you haven't been singled out.

albo2002

I got my letter today

Would have been nice if the staff at Nationwide that I've spoken to this year, who all assured me that there would be no rise in interest rates on my account unless the base rate rose, knew about the rise :mad:

kingstreet

There's a very long thread on here already about this. I'll have a look...

https://forums.moneysavingexpert.com/discussion/2486131

HTH

sradia

Market Harborough Building Society are now offering Holiday Let Mortgages