UCB refuses to pass interest rate change onto buy to let mortgage customers

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A btl landlord accusing others of greed lol

keith14

What an unpleasant comment, I employ local people, support  tourism which is the main industry in the area and I support craft in the area. I'm not a greedy landlord as you put it. Why support the banks when there behaviour is wrong? #benice

Brock_and_Roll

The mos important factor here is that the both risk of default and what us bankers call the loss probability on default from a portfolio of BTL's or holiday lets has significantly  increased as a result of the covid crisis.
So UCB will be plugging these new factors into their models which will probably have a significant downward effect. They could of course increase rates, but that may be counterproductive never mind unpopular at the moment so not passing on this (small) rate cute seems like a logical move. The product is of course unregulated and customers are free to leave.

Brock_and_Roll

Oh and I had me B&B mortgage with GE Capital - now they know how to charge!

dunstonh

keith14 said:

I found out today that UCB (Nationwide Building Society) has made a company decison NOT to pass the Bank of England's drop in interest rates onto Buy to Let customer mortgages. What terrible greed at this difficult time. Most buy to let people like myself run  a rental property as a holiday let, so currently have no income. The interest rate drop was made to help people, so UCB decided to keep it for themselves. They should be shamed as a company.

Are you on a base rate tracker?   if yes, then they are in the wrong. If no, then they are not.

BTL mortgages factor in the commercial risk side of things and unfortunately, BTL has become riskier in recent months.

If you are like most that operate rentals, you include some risk premium in your charges to those you let the property to.  So, you should understand the concept.     With BTL mortgages, you are effectively operating in the commercial world and not the consumer world.