THOUSANDS of buy-to-let borrowers in the UK are facing a steep increase in their monthly mortgage payments after interest rates were increased by two per cent despite being linked to the Bank of England rate.
West Bromwich Building Society is hiking rates on some of its tracker loans, affecting around 6700 customers, in a change which will increase repayments on a $US200,000 ($A214,465) loan by an estimated STG330.
The move adds to costs for private landlords and has led to concerns that other lenders may follow suit after a similar move by the Bank of Ireland earlier this year.
Tracker mortgages are generally advertised as being linked to the Bank of England rate - but this has not changed for four years, remaining at an historic low of 0.5 per cent which the Bank has indicated will not change until 2016.
But a spokesman for the West Bromwich said: "We believe it is very clearly stated in terms and conditions about the circumstances in which changes to the rates could happen."
The mutual said in a statement: "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."
Borrowing costs on the financial markets have risen despite the Bank of England's low-interest pledge amid doubts about the timescale of the policy which is linked to the unemployment rate.
Earlier this year, the Bank of Ireland told 13,500 customers, many of whom had taken out loans with subsidiary Bristol & West, that rates on their tracker deals were being increased sharply.
But it announced a partial backtrack when it cancelled the rise for 1200 borrowers after the Financial Conduct Authority became involved. It related to what they had been told about potential changes to mortgage rates.
Anda sedang membaca artikel tentang
Buy-to-let borrowers face UK fee hikes
Dengan url
http://petanidollarindo.blogspot.com/2013/09/buy-to-let-borrowers-face-uk-fee-hikes.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Buy-to-let borrowers face UK fee hikes
namun jangan lupa untuk meletakkan link
Buy-to-let borrowers face UK fee hikes
sebagai sumbernya
0 komentar:
Posting Komentar