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.”