Press Release – Tracker Rate MortgagesMake Text Bigger
Was it your understanding that interest rates on lifetime tracker mortgages or reversion tracker rates can only vary when the Bank of England base rate moves?
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 Bromwich 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.
Property118.com have more information on their Property Forum