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Timely warning for accidental landlords

Timely warning for accidental landlords

Category: Mortgages

Updated: 17/05/2010
First Published: 17/05/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Accidental landlords have been warned that they could face stiff charges if they have been letting their home for three years or more.

Homeowners with Nationwide on residential deals that have rented out their home for more than three years will have their interest rate increased by 1.5%, the mutual has announced.

The new rules will be introduced from 1 September for new customers, and 1 December for existing clients.

A £50 fee will also be charged when homeowners inform Nationwide of their intention to make their home available for rent.

The housing crisis has seen the number of accidental landlords increase over the last couple of years, much to the chagrin of providers, many of whom charge fees of some sort to make up for the shortfall enjoyed by landlords on residential rates.

"By introducing this increase in rate for accidental landlords it seems that Nationwide has decided to bring pricing in line with the additional perceived risks that they are exposed to, due to a change in conditions," said Darren Cook, spokesperson for Moneyfacts.co.uk

"A stance can then be taken that the introduction of these one-off fees is justified as it is a technical service that is being provided.

The new levies are part of a range of changes Nationwide has made to its tariffs. For instance, a visit to a customer's home by a Nationwide representative regarding arrears would cost the borrower £100.

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