The Bank of England’s Monetary Policy Committee today voted to maintain the official bank rate at 0.5%.

Continue Reading

Buy to let landlords with a Nationwide  residential mortgage face a 1.5% interest rate increase.

The details are in a confidential internal document, according to Money Mail.

The rate rise takes effect from September 1 for new requests to switch a mortgage from a residential product to one that covers letting a home to tenants for more than six months.

Borrowers who already have buy to let permission will have their rates put up on December 1.

Nationwide also intend to introduce new fees across the board for mortgage borrowers, according to Money Mail, including a £75 for converting to a letting mortgage rate, £20 for changing the term of a loan and £50 for switching between an interest only or repayment loan.

Money Mail says the document states: ‘Charging of fees will generate significant income for the group.’

The rise will mainly affect reluctant landlords – homeowners who have had to move for work or personal reasons but  who are unable to sell their home and rent the property in the short term.

The Bank of England’s Monetary Policy Committee has voted to maintain the official bank interest rate at 0.5%. The last bank rate change was a reduction of 0.5 percentage points to 0.5% on March 5, 2009.