RBS mortgage customers face £120-a-year charge if they decide to rent out their homes
RBS used to freely allow mortgage customers to rent out their homes but will now charge £120-a-year
Royal Bank of Scotland (RBS) customers with ordinary mortgages now face a £120-a-year charge if they decide to rent out their homes.
RBS used to give permission without charge, and borrowers could avoid taking out a more expensive buy-to-let mortgage.
The bank gave them six months’ notice in June in a letter that states the fee is to ‘offset the costs of this more complex arrangement’ that compares ‘favourably’ to the cost of a buy-to-let mortgage.
David Hollingworth, of mortgage firm London & Country, says lenders do not have to give permission to let and can impose fees or increase the interest rate.
Nationwide, for example, adds 1 per cent to its residential mortgage rate for landlords.