West Brom BS set to raise rates

There is some unwelcome news heading for landlords doormats who have a BTL through West Brom BS. It turns out that the BS of building society also stands for something else. The mortgage lender has announced it is going to add 2 percent to all its BTL tracker mortgages starting in December.

Their current tracker rate stands at just 1.65 percent but this is set to more than double to 3.65 percent.

The building society have responded by saying: 'We believe it is very clearly stated in terms and conditions about the circumstances in which changes to the rates could happen.'

'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.'

This move follows the Bank of Ireland's increase in their rates earlier in the year and could be the start of a worrying trend in BTL lenders shifting their agreed rates / goal posts.

It should come as a warning to landlords who are gearing heavily on their investments to read the terms and conditions of their BTL mortgage agreements. 

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