Lenders Greed

As a buy-to-let property investor I have enjoyed relatively low interest rates during the past year by the majority of my lenders with the exception of GMAC loans.  Despite record low Bank of England mortgage rates, low Libor Rates and generally low money rates the GMAC loans have continued to increase.

Loans managed through the Skipton Office or on sold to Building Societies have repeatedly increased during the last 12 months.  Just this week I have had loans managed by Derbyshire Building Society and Amber Home Loans increase by more that £100 per month.  Each letter states that 'e are experiencing exceptional circumstances'making the cost of borrowing more expensive.  Certainly I agree that we are experiencing exceptional circumstancesof greed by lenders who have over exerted themselves and have no idea of managing budgets.

Imagine what would happen if tomorrow I turned around to my tenants and told them I had to increase their rents by £100 a month effective immediately?  I've no doubt I would lose most of my tenants.

With it still difficult to get BTL lending in the UK it would be nice to see some sort of restriction on these unscrupulous lenders who are just out to line their pockets.