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30 July 2010

Nationwide’s let property rate hike challenged

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by Gill Montia

Nationwide's let property rate hike challenged

Which? is challenging a decision by Nationwide to hike mortgage rates for some borrowers who are letting out their properties.

The building society does not offer traditional buy-to-let loans but has allowed existing customers who need to move to continue with their mortgage arrangements.

However, the lender is proposing to raise rates by 1.5% for those who haven’t been resident for three years or more, although Which? claims this could potentially place Nationwide in breach consumer regulations.

The increase is intended to reflect additional risk but the consumer group has labelled it unfair and has now written to the Financial Services Authority asking the regulator to intervene.


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