9:48 AM, 10th March 2014, About 10 years ago
Outraged by the fact that his mortgage lender changed the terms on his tracker rate mortgage, buy to let landlord Mark Alexander posted a blog on the Property118 website in September last year. Since then his blog page has been visited over 175,000 times and nearly 4,000 comments have been posted.
There are nearly 2.5 million tracker rate mortgages in the UK, the terms of which apply to both landlords and homeowners. The tracker rate mortgage concept is very simple – the interest rate and tracks the Bank of England base rate at a fixed margin for the entire term of the mortgage. It it the transparency of pricing which made tracker rate mortgages so popular. However, despite the Bank of England having not moved its interest rates for 5 years, some mortgage lenders have decided to increase their rates any way by increasing their margins.
The purpose of the blog was to raise £15,000 to take independent legal advice on whether in fact the West Bromwich Mortgage Company had the right to do this. In just 6 months over £100,000 was raised.
Affected borrowers have now decided to proceed with litigation against the Building Society after it refused to take the case to arbitration.
Funds already raised by immediately affected borrowers are more than adequate to pay their own legal costs but they now need to raise a further £250,000 to be held in an account to cover the other sides legal costs if they lose.
Progress has been rapid and it looks as though the target will be met by the end of this month.
Details of how to get involved can be obtained by completing the short form below or read more here
The deadline for submission of instructions has now expired, sorry.
— Property118.com (@Property118) March 10, 2014
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