20:21 PM, 19th January 2015, About 7 years ago 124

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#WestBromTrackerMark Smith, Head of Chambers at Cotswold Barristers will be representing landlords at the Commercial Court at Rolls Building, Fetter Lane, London this Wednesday in the UK’s largest ever direct access legal case. #WestBromTracker

We will be tweeting under hashtag #WestBromTracker so please feel to join in the discussion on Twitter and re-tweet. You may also wish to use hashtags such as #mortgage #news and #media but #WestBromTracker is the essential one.

Please wish us luck because this really is a David and Goliath fight. The people affected by these tracker rate margin hikes trusted their mortgage lenders to treat them fairly. Via Property118 a group has managed to raise over £500,000 to have a case against the West Bromwich Mortgage Company (a wholy owned subsidiary of West Bromwich Building Society) tested in Court. The funds raised to fight the case have not come from the super rich, they’ve been contributed by hard working folk who chose to invest their hard earned savings into providing much needed rental property. They trusted the building society to honour the mortgage deal they signed up to but sadly this trust has been broken. 

The Bank of Ireland, Manchester Building Society, Skipton Building Society and their wholly owned subsidiary AmberHomeloans have previously got away with similar rate-hike shenanigans but it is not too late for affected borrowers to take action. Hopefully a win on Wednesday 21st January will discourage other mortgage lenders from tinkering with tracker rate mortgage margins in the future and will also inspire borrowers affected by similar rate hikes to fund legal action against those mortgage lenders too.

Trading Standards, the Advertising Standards Association and the FCA all refused to get involved in the dispute. The Financial Ombudsman Service appear to have chosen to ignore all contractual legal arguments and to make very strange decisions in all complaints regarding actions of mortgage lenders in respect of hiking interest rates when their sales pitch clearly linked rates to a transparent pricing structure.

Watch this space and please feel free to post comments.


  • Before the credit crunch tracker mortgages were incredibly popular, there are an estimated 1 million tracker rate mortgages in the UK, many of which are secured against peoples own homes
  • Tracker rate mortgages are intended to provide transparent pricing. The rate of interest is directly linked to the Bank of England base rate plus an agreed margin for an agreed period of time, in many cases for the lifetime of the loan.
  • Some unscrupulous lenders have increased the margin charged over the base rate and this has been the basis of our legal argument against the West Bromwich Building Society, i.e. the contract did not allow for this to happen.
  • Some peoples mortgage payments have more than doubled despite the base rate not having moved for nearly six years.
  • Hikes in tracker rate margins haven’t only affected landlords
  • In 2013 Bank of Ireland increased the margins on over 15,000 tracker rate mortgages, those affected were both homeowners and people who had taken buy to let mortgages in order to buy properties as investments to provide for their retirement. To date, insufficient funds have been raised to take this case to Court.
  • People naturally tighten their purse strings when their mortgage costs increase and many have expected regulators to step in and help them. Sadly the regulators’ appetite to take on the banks and building societies who have breached their mortgage terms by increasing their tracker rate mortgage margins has been none existent. That’s why Court action has been so necessary.
  • If every affected person had committed just £500 to fight for their rights in Court this sharp practice from mortgage lenders would have been nipped in the bud a long time ago.
  • In 2010 Skipton Building Society and their wholly owned subsidiary Amber Homeloans removed a contracted interest rate cap from their mortgages which had a similar effect of massively increasing the mortgage payments of a reported 80,000 borrowers. The interest rate cap, which was linked to the bank base rate, was removed despite public announcements from their CEO less than a year before that contractual arrangements would be honoured. A case has never been taken to Court due to lack of financial commitment from affected borrowers. more about the Skipton Building Society rate hike and links to source information here >>> http://www.property118.com/skipton-building-society-legal-action/64751/
  • Both Property118 and Cotswold Barristers are keen to pursue legal action against Skipton Building Society and the Bank of Ireland if public interest in doing so is sufficiently high and subject to the required level of funding being attained.
  • The required level of financial commitment to take on the other offending lenders would be circa 2,000 borrowers each committing around £500.


by Andy Bell

13:49 PM, 21st January 2015, About 7 years ago

Just asked a couple of the others their if they can fill us in-

@PippinTog @peachybeaches Can appreciate Mark's busy, could you expand, I'm relaying tweets to the forum for the non twitters

by Andy Bell

15:04 PM, 21st January 2015, About 7 years ago

Mark Alexander ‏@iAmALandlord 4m4 minutes ago
#westbromtracker it's a cliffhanger! Could be weeks until we get a decision

by Andy Bell

15:06 PM, 21st January 2015, About 7 years ago

Mark Alexander ‏@iAmALandlord 6m6 minutes ago
#westbromtracker consensus amongst attendees was that our closing arguments were stronger

by Onslow Clough

15:19 PM, 21st January 2015, About 7 years ago

Think I need a lie down...can't cope with the tension

by Dean

16:06 PM, 21st January 2015, About 7 years ago

Do we know if its finished yet ?

4pm seems late for a Judge to still be working ?

I would have thought and hoped some of those who went would have been able to pop a few posts on here with their thoughts on how its all gone .

Perhaps they are all in the pub celebrating ? 🙂

by Mark Alexander

16:11 PM, 21st January 2015, About 7 years ago

Reply to the comment left by "Dean " at "21/01/2015 - 16:06":

It's all over for today but I've heard we may have to wait up to 5 months for a ruling!


by All BankersAreBarstewards Smith

16:15 PM, 21st January 2015, About 7 years ago

Reply to the comment left by "Mark Alexander" at "21/01/2015 - 16:11":

Thank you Mark.... for all the months of work and effort you have put into this. it must be so disappointing that the wait for a verdict could be so long.. but I see this as a good sign. The judge probably recognises the importance of the precedent his decision could set, and so wants to read and absorb all the evidence fully in case of an appeal. WB will not go down easily.

You deserve a rest from matters WB mate !!! if only for the rest of the week.....

by Andy Bell

16:16 PM, 21st January 2015, About 7 years ago

Reply to the comment left by "Dean " at "21/01/2015 - 16:06":

Cotswold Barristers ‏@Cotswoldbrief 8m8 minutes ago
@iWork4UGlos Mr Justice Teare has heard all the arguments today and will give his judgment in a couple of weeks. #WestBromTracker

by Onslow Clough

16:16 PM, 21st January 2015, About 7 years ago

Mark Smith is on Twitter talking about a couple of weeks' wait...that wouldn't be so bad. Thanks to Mark Smith for all your work today!

by Andy Bell

16:19 PM, 21st January 2015, About 7 years ago

Cotswold TV ‏@CotswoldTV 21m21 minutes ago London, England
In London for largest direct access case in history #WestBromTracker
Panorama doc. filming with Carla Morris-Papps

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