Penalties cut on landlord loans

LANDLORDS may be able to repay their mortgages early without eye-watering charges as a growing number of lenders scrap fees.

On a typical £ 150,000 loan, early repayment could mean as much as a £7,500 penalty — charges vary from 1 pc to 5 pc of the total mortgage.

Coventry and Leeds building societies and Clydesdale and Yorkshire Banks do not now charge for early repayment.

Buy-to-let investors face higher taxes on rental income from next April. It may make some sell before then, so cheaper early-exit fees could save them money.