Portfolio Landlord exploitation?

Portfolio Landlord exploitation?

11:13 AM, 7th June 2021, About 2 months ago 22

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I have come to the end of my 5 years fixed mortgage product. At the time of taking the Mortgage, there was no such definition of Portfolio or Non-Portfolio Landlord (the one who owns more than 4 properties). I simply decided to switch product with the same lender and I own exactly the same number of properties as I did 5 years ago.

When questioned by the lender, if I currently owned more than 4 properties, to which I answered “Yes”. The product which I fancied from their list was no longer available as they stated that, as a Portfolio Landlord, this product was not available, and they offered a product which was 1% higher than my choice.

My concern is that I did not ask for more borrowing there was no credit search as it was a simple product switch. How lenders can justify an extra 1% and why as a portfolio landlord I am penalised for something which was not applicable at the time of taking a mortgage with them?

As I already have a Mortgage with them, this is not as if there is an extra risk to the lender. In my view lenders are exploiting BTL borrowers because of Prudential Regulation new rules and as a result, my costs have gone up significantly not to mention S24 has already eaten up 20% of our profits.

Any views appreciated.

Simon



Comments

by David Mensah

21:26 PM, 13th June 2021, About 2 months ago

I don't know the answer to those questions, My guess is that there is no limit to the number of properties.

HB are very much a local bank, so rules can differ from place to place.

They are still working through some details of how the regulatory legislation applies to them, it's a bit of a mess at the moment from what I can see.

by David Mensah

21:39 PM, 13th June 2021, About 2 months ago

b.t.w. just checked their reviews on trustpilot -- not entirely surprised by some of the negative reviews .. https://uk.trustpilot.com/review/handelsbanken.co.uk?

Service is not what it was, I've been with them for 15 years and it was better in the past.


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