Yesterday Mark Smith (head of chambers at Cotswold barristers), took West Bromwich building society to court on behalf of Mark Alexander and a few hundred other people affected by West Bromwich Mortgage Co. Ltd.
What you need to know:
- The case concerned tracker rate mortgages. In a tracker rate mortgage, the rate of interest moves in line with that of the Bank of England base rate.
- An agreed margin is also added to this base rate, for an agreed period of time.
- Lenders, such as that of the West Bromwich Building Society, have increased the margin charged over the base rate.
- The base rate hasn't moved for nearly six years, yet some peoples mortgages have almost doubled because of the increase in the margin from lenders.
- Court action, from Mark Alexander and the few hundred borrowers (who all contributed financially to getting the case to court) has been the necessary course of action. This is sadly after regulators have failed to step in and take the banks and building societies, who have breached their mortgage terms, to court themselves.
...The hearing continues