11:00 AM, 22nd November 2013, About 10 years ago
Mortgage brokers are furious that the West Brom Building Society are only targeting clients they introduced with a 1.9% hike of their tracker margins. Only 41% of borrowers are affected highly controversial rate rise, direct customers of the the building society are not currently being targeted.
Further, the society has issued veiled threats in response to customer complaints suggesting they can call in loans with 28 days notice. Have the credit rating agencies such as Moodys and, Fitch been made aware of this? Would they really be treating customers fairly if they were to call in 25 year mortgages mid term even if their borrowers are not in default?
This week the FCA have confirmed that they have been approached by several other mortgage lenders about plans to increase their tracker rate mortgage margins. We said this would not stop at Bank of Ireland and within months West Brom followed.
The FCA fobbed off MP Andrew Tyrie, Chairman of the Treasury Select Committee saying the Bank of Ireland case was a “one off”. We now know this not to be the case.
Very recently the Treasury have been telling affected borrowers their role is not to meddle in the commercial pricing decisions of mortgage lenders – WHAT! – even if they are illegal??? Mr Tyrie started off doing a great job but the Treasury seems to have backed off – WHY?
Only 41% of West Brom’s Tracker Rate mortgage borrowers are currently being targeted with the 1.9% increase in their tracker mortgage margins. Many of the others are direct customers of the lender or consumers who happen to own just one buy to let property. How can this possibly be treating customers fairly?
Mortgage Brokers will be furious that only clients they’ve introduced are being targeted and yet we have been informed that part of West Brom’s turnaround plan is to create a new online mortgage platform for the broker market. Talk about biting the hand that feeds you!
The building Society made losses of circa £9 million last year and it is believed the hike on tracker margins could raise an additional £19 million per annum if they are allowed to get away with it. No wonder the other mortgage lenders want to follow suit.
There are thought to be around 2.5 million tracker mortgages in the UK. So far, 6,700 borrowers with West Brom are affected and a further 12,200 with Bank of Ireland. Those affected right now aren’t the tip of the iceberg, more like a snowflake on the top.
Property118 are the founders of the Class Action campaigns against the the West Brom and the Bank of Ireland. More HERE.