Landlords are complaining about a move by West Bromwich Building Society to hike buy to let mortgages by 2% from December 1 for borrowers on buy to let trackers.
Many of the buy to let mortgages specify a rate of 0.99% above Bank of England base – which means landlords are currently paying and interest rate of 1.49%.
The rate increase affects around 6.700 borrowers who took out loans with the now defunct West Bromwich Mortgage Company.
“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,” said a building society spokesman.
Recently, Bank of Ireland raised rates on buy to let mortgages for more than 13,000 customers, but backed down after protests in just over 1,200 cases.
Paragon Mortgages is offering landlords six two-year fixed buy to let mortgage rates starting at an interest rate of 4.5% and up to 75% loan to value (LTV).
The mortgages are for self-contained flats and houses in multiple occupation (HMOs).
Kensington has reviewed buy to let mortgages for landlords, cutting rates by up to 0.5% and slicing completion fees to 2% of the loan value or a fee of £1,999.
Mortgages are available up to £1 million, with two-year fixed rates starting at 4.14% at 70% LTV.
Santander has eased borrowing restrictions for landlords who arrange deals through a broker.
Buy to let mortgage affordability interest rates are dropping from 6% to 5%, with rent cover at 125% of the mortgage payment at the buy-to-let affordability rate.
The maximum loan for a property increases from £500,000 to £750,000
Borrowers must be aged between 21 and 70 years old, and for two or more borrowers, one must be employed, and earn more than a £25,000 a year basic salary.
Maximum LTV is 75% with a minimum purchase price is £75,000.
Applicants should have a residential or buy-to-let mortgage with Santander, and HMOs not eligible.
Virgin Money has raised buy to let mortgage rates for new customers.
The standard variable rate (SVR) of 4.79% following the end of any fixed rate period switches to 4.99%.
Accord Buy to Let has launched three new landlord mortgages with no completion fees and £500 cash back on completion.
All three deals are at 75% LTV with interest rates starting from 3.79%.