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RBS mortgage customers face £120 charge if they rent out their homes 

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.

a.murray@dailymail.co.uk

 

Read more at DailyMail.co.uk


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