Buy To Let Updated:
Thousands of West Brom Building Society's buy-to-let mortgage customers will see their rates hiked by 2% in December.
The building society announced yesterday that buy-to-let tracker rates, which follow the Bank of England's base rate, would increase by 2% on 1 December.
This will affect around 6,700 borrowers who hold a product with the building society's specialist lending arm, West Bromwich Mortgage Company.
A spokesman for the building society said the rate hike is permitted under the terms and conditions of the accounts.
"These changes … are a reflection of market conditions and the need for us to carry out our business prudently, efficiently and competitively," he added.
If you're one of the 6,700 borrowers facing a significant increase in your monthly repayments due to West Brom's change, then you could remortgage to a more competitive buy-to-let deal.
Rates in this sector start from as low as 3.38% fixed for two years from Virgin Money. Buy-to-let borrowers will need at least a 40% deposit to be eligible for this product.
West Brom has also said that affected borrowers, who are all landlords with multiple properties, have until the end of March 2014 to repay or move their mortgage without facing any exit fees.
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