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West Brom borrowers set for court showdown over rate hike

West Brom Building Society borrowers hit by a tracker mortgage rate hike are set for a court showdown with the lender as the number of claimants hits 400.

In September, West Brom told 6,700 of its buy-to-let tracker customers their rates would increase by 2 per cent on 1 December.

The borrowers all have mortgages with West Bromwich Mortgage Company, its now closed specialist lending arm, and own multiple properties.

The class action has accelerated with the number of people signed up jumping from 150 in November to more than 400 today.

Law Department solicitor Justin Selig, who is leading the class action, says he has received Counsel opinion advising them to push the case to court.

He says: “We have a number of remedies available to us highlighted by the barrister. There are certain actions we can take which will help our case.”

Selig says he cannot make the remedies available public due to the ongoing nature of the case.

He is leading a similar action for Bank of Ireland borrowers hit by a tracker increase last year but the campaign is struggling to sign up claimants.

Landlord website Lettingfocus.com owner David Lawrenson says: “It is good borrowers are fighting this. Lenders are looking for wriggle room and technicalities so I hope the rate hike is stopped as it will discourage other lenders from doing the same.”

A West Brom spokesman says: “Changes are being made in line with the accounts’ terms and conditions, which were designed to ensure the society could fulfil its duty to manage the business prudently in all market conditions.”

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Comments

There are 3 comments at the moment, we would love to hear your opinion too.

  1. It bugs me that yet again Property118 is not mentioned. Justin Selig is not leading this campaign, he is the appointed legal adviser. The campaign itself is being lead by Property118 members via the Property118 forum – GRRRR!!!

    I wouldn’t mind but this type of misdirection might result in advisers and affected landlords missing out on the campaign and the benefits of being part of it.

  2. Good luck with your legal proceedings. I hope you don’t all get slaughtered. West Bromich can be very tricky dickies and they are powerful

  3. I’m an affected borrower signed up to the class action and would urge any other borrowers affected by the rate increase to sign up and join us while there’s still time – property118.com

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