We are currently in NZ and renting out our property in the UK. This is not something we planned but an opportunity came up and we took it. The rent we make on our UK property is not enough to cover the mortgage so we are sending a few hundred pounds back to the UK each month to make up the shortfall.
Anyway we took out a ten year fixed term mortgage so that we knew what we were going to be paying each month and would have a bit of security. Anyway this morning I got a letter in the post from Nationwide telling me that because the property is being let out and has been for almost three years we will have to pay 1.5% interest on top of our current mortgage rate. That will mean an increase of a few hundred pounds each month. Something we can't afford.
I am writting this on the verge of tears. I have no idea what we are going to do or how they are allowed to do this. We could sell the house but this will not be easy and I am on the other side of the world! It seems totally illegal to me that you can suddenly introduce a new charge having signed a contract. They are going to loose money in the long term as we will have to sell the house.
Is anyone else in this situation or have any good advice it is a really depressing situation.