Does your rate increase if you let your property?

Posted on 26 July 2008

I have a tracker mortgage with the woolwich, if I let my house will my rate increase?

Paul,

Thank for your question which has two answers depending on whether you intend to let the property for the long or short term.

If it is a short term plan, (Woolwich class short term as less than 2 years) then there are deals available that may mean your rate will not increase. Woolwich, for example, will grant you permission to let and charge you an admin fee of £100 per year.

If you intend to keep the property long term (longer than 2 years) then it is highly likely your rate will increase. You will need to remortgage to one of their buy to let rate and pay all the relevant fees including any early repayment charges applicable to your current mortgage. If you were intending to take this road I would recommend you seek advice from a mortgage broker

One of our Charcol brokers would be delighted to assist you in finding a solution that best suits your needs, so please do call on 0845 413 1053.

I wish you all the best.

Bea

 

Answers provided in response to Ask Bea are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of Charcol Limited. All comments are made in good faith, and neither Charcol Limited nor Bea will accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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