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Property legal services news
New EPC rules for all landlords and agents
7 February 2012
HS2 land payment scheme agreed
2 February 2012
B P Collins joins forces with Fairchild Dobbs
31 January 2012
'Clarity needed' over green property laws
19 January 2012
Call to extend stamp duty exemption
18 November 2011
Local authorities planning to enforce Article 4 of HMO legislation
28 October 2011
Nationwide rate rise 'could amount to breach of contract'
02 August 2010
The Nationwide Building Society could be in breach of its customer regulations or even in breach of contract over a rise in mortgage rates, according to consumer group Which?. Customers with a residential mortgage who are letting their home for more than three years will be hit with a 1.5 per cent rise in mortgage rates from September.
The move has angered Which?, prompting it to write to the Financial Services Authority requesting it to block the rate rise. One member of the consumer group now faces interest rates of 7.7 per cent. Meanwhile, Nationwide maintained that the move is necessary to protect mortgage products designed for those who live in their homes.
Responding to Which?, Nationwide said: "When properties on a residential mortgage are rented out over the longer term they result in additional risk and administration cost and we believe it is appropriate to levy an additional interest rate on these accounts."
Posted by Chris Hardy.
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