Action against West Brom tracker increase

We have recently received a warning from one landlord warning and highlighting landlords about the recent decision of the West Bromich Building Society to recind their buy-to-let tracker rate mortgage rates.  In their own words:

"There are now plenty of angry borrowers out there, 6,700 in clients of the West Bromwich Building Society and a further 12,200 clients of Bank of Ireland are already affected. These lenders have decided to increase their profit margin by increasing the interest rates regardless of the fact that the Bank of England base rate has not changed. They are relying on ambiguous small print in their contracts, which is in conflict with their promotional materials and offer letters.

It appears a strong possibility that other lenders may follow suit and many now feel that this unethical practice should be stopped before other lenders make their decisions.

A Class Action group has formed to fight back. Those already affected are confident that the law is on their side, in particular due to established legal precedent that ambiguous or self-contradicting contracts must be interpreted in a way that benefits the customer (termed “contra proferentem”).

The Class Action is receiving support from many tracker mortgage borrowers in addition to affected customers of the West Bromwich Building Society and the Bank of Ireland.

People affected by the West Browmwich Mortgage Company decision are buy to let landlords, however, Bank of Irelands increases also apply to residential mortgage borrowers.

Fears are that other mortgage lenders which have provided tracker mortgages could follow suit."

If you have a view or have been affected then please post your thoughts below.

Read more on the West Brom BS situation from the BBC

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