12:18 PM, 1st October 2013, About 12 years ago 10
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We are encouraging everybody who has registered for the Tracker Mortgage Class Action campaign to contact their local press with a copy of the Press Release below. Please copy/paste into an email, send it to your local Newspaper and follow up with a call to their financial editor.
Local landlords have been shocked by a bombshell letter received from lender West Bromwich Building Society which has doubled their mortgage payments almost overnight.
Buy-to-let borrowers with three properties or more have been targeted by West Brom to bail out their balance sheet by increasing their tracker mortgage rate – in direct contradiction to the terms of the mortgage offer signed by the landlords.
The building society has engaged a team of lawyers to scour the small print of a booklet issued with the original mortgage offer and is using a well-hidden clause to justify the increase, based on a rationale of “prudence and efficiency”.
Borrowers are furious as their tracker mortgages, promised to track at 0.99% above base rate have been increased by 2% with effect from the beginning of December. The rise will add between £200-£400 to the average monthly mortgage payments, inevitably forcing rent rises as leases are renewed.
As anger grows amongst the 6,700 affected borrowers, a legal campaign is already well in hand. Solicitor Justin Selig of The Law Department says, “I have had a look at the paperwork and there doesn’t seem to be any reference to the ability to increase the margin, so I don’t know how they think they can get away with it. This is definitely worth fighting.”
Mark Alexander of the Property118 landlords forum is co-ordinating the campaign and says, “Whether you are a client of West Brom, Bank of Ireland (which has also done the same) or indeed you have a tracker mortgage elsewhere you need to help fight this case. Your tracker mortgages may not be with West Brom or Bank of Ireland, however, that does not mean that you are safe. You may be OK today but what about next week, next month or next year?”
The Property118 forum is raising a fighting fund to take a Class Action Lawsuit to the courts. Currently nearly 700 people have committed. A template complaint letter to the building society and financial ombudsman is also available on the website.
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
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Dean
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Member Since October 2013 - Comments: 386
18:07 PM, 1st October 2013, About 12 years ago
Mark
You brought up a great point about West Brom. Many people have signed these agreements on the understanding they were fixed at a certain percent above Bank base rate. Many will have had their solicitors look over the agreements. I doubt if any solicitor gave advice that West Brom could come back later and change this agreement. So if everyone writes to their solicitor as you suggested and asks them to inform their Professional Indemnity Provider that a claim could be forth coming then perhaps landlords could get the insurance providers on side. The potential claims would be into the billions over the remaining terms. surely the insurance companies are the one group who could provide more than enough funds to create a case. If enough solicitors suddenly start contacting their insurers these companies will take notice
Mark Alexander - Founder of Property118
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Member Since January 2011 - Comments: 12105 - Articles: 1318
18:42 PM, 1st October 2013, About 12 years ago
Reply to the comment left by “ ” at “01/10/2013 – 18:07“:
It’s certainly an angle we are considering.
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Member Since January 1970 - Comments: 87 - Articles: 5
20:08 PM, 1st October 2013, About 12 years ago
Press release sent to local paper – I’ll let you know if it gets printed.
ian
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Member Since July 2013 - Comments: 264
20:23 PM, 1st October 2013, About 12 years ago
Hi Mark
Would you please be kind enough to send your press release to my local news paper in Folkestone.
[email protected] many thanks.
Mark Alexander - Founder of Property118
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Member Since January 2011 - Comments: 12105 - Articles: 1318
21:11 PM, 1st October 2013, About 12 years ago
Reply to the comment left by “ian ” at “01/10/2013 – 20:23“:
Hi Ian
That wasn’t really what we had in mind as the press will usually want to hear from local people. Nevertheless I have sent it.
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Mark Alexander - Founder of Property118
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Member Since January 2011 - Comments: 12105 - Articles: 1318
21:16 PM, 1st October 2013, About 12 years ago
Reply to the comment left by “ian ” at “01/10/2013 – 20:23“:
Well done Ian, here’s our Tweet
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ian
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Member Since July 2013 - Comments: 264
21:31 PM, 1st October 2013, About 12 years ago
Reply to the comment left by “Mark Alexander” at “01/10/2013 – 21:16“:
Thanks Mark I was unable to cut & paste never done it before not techno minded.
Annette Stone
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Member Since June 2013 - Comments: 186
9:26 AM, 2nd October 2013, About 12 years ago
Mark, I don’t have anything with this lender but another one tried the same thing with me a couple of years ago and had to back down because there was no floor on the mortgage and therefore if the tracker rate fell the mortgage had to fall, even to 0%. Is everyone sure that their mortgages do not allow for a rate rise if the mortgagee fall below a certain level? I am sure you have all thought of this but thought it worth mentioning
Also, where the lender says this rise applies to anyone with three mortgagees does this mean three mortgages with them or three mortgages with any lender? If the latter (and they will know how many other mortgages people have as I understand all banks/building societies ask for this information) there would be far more people caught in this than if it just applied to West Brom mortgages. May be worth checking and possibly amending the press release.
Alison Buckland
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Member Since September 2013 - Comments: 30
12:29 PM, 2nd October 2013, About 12 years ago
Press release is currently winging its way to the Eastern Daily Press.
Can I suggest that any Tweeters amongst you also discuss it on Twitter. I’m finding very little discussion about it on there. I’ve been using #WestBromtracker in the hopes of starting something… Keep up the good work everyone!
Mark Alexander - Founder of Property118
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Member Since January 2011 - Comments: 12105 - Articles: 1318
13:14 PM, 2nd October 2013, About 12 years ago
Reply to the comment left by “Alison Buckland” at “02/10/2013 – 12:29“:
My Tweets …
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