West Bromwich Building Society Tracker Margins Legal Action

Reply to the comment left by "Mark Alexander" at "19/11/2013 - 20:06":

very interesting and enlightening mark but she is basically confirming everything that i suspected from the moment i read the rate rise letter. my view for what its worth is that the biggest risk of overturning this decision is not not winning in a court battle, i too don't think they have a leg to stand on, its not getting enough people to pay #240. . however in view of the fact that we have already raised over half the target, i'm guessing that virtually every one who has paid up already would be willing, if necessary, pay a further #240 this would ensure the fund is large enough to go ahead. i for one would be prepared to pay considerably more than #240 to get my day in court. i'm not a gambling man, but i would think that a #480 stake with a potential win of around in my case of #35000, when the probability of succeding is better than even is a bet that even i would snap up

@Shaun - I agree

@Alexander - Yes you are reading it right, she said she also has other BTL's elsewhere.
.

My initial illustrations provided by Harris and Associates are from "West Brom for Intermediaries" "a trading name of the West Bromwich Mortgage Company Ltd" If this is of any relevance?

Hi I am new to this so forgive me for any errors!!! i phone Justin a week ago and informed him i had a WBBS mortgage which was not through a brooker and my intrest has not changed, Justin i senced was not aware of this, When the mortgage was first taken the phone number was different to the one of the brooker. My friend has a WBBS BLT through a brooker and both our papers seem the same he has spoken to WBBS regarding this and was told "We are just dealing with brooker one's at the moment". The fees were the same and we both used the same law firm. I do not remember receiving the hand book but will request a copy asap keep up th good work

Reply to the comment left by "Pindy Kaur" at "20/11/2013 - 00:38":

Hi pindy.

Are you saying you are included in the rate increase and your friend is not?

What number does your account start with and what number does your friends account start with please

Thanks

Quote from The Times >>> http://www.thetimes.co.uk/tto/business/columnists/article3926477.ece?CMP=OTH-gnws-standard-2013_11_19

"Sympathy will have been limited in some quarters, for many of the Bank of Ireland UK and West Brom customers hit by this ruse were buy-to-let landlords. But that is irrelevant. What matters is the principle, which is that, for technical reasons, lenders were able to raise the cost of servicing mortgages that customers had blithely assumed — worse, had been led to believe — would rise in price only along with Bank rate.

It will also alarm Britain’s 2.5 million holders of tracker mortgages to learn that, in the wake of what West Brom and Bank of Ireland UK did, other lenders have also indicated to the FCA that they would like to follow suit."

Reply to the comment left by "shaun campling" at "19/11/2013 - 20:42":

I would definitely put the same into the pot if we don't raise enough, plus more! Actually seeing in writing the extra £250 pm that I have to pay has angered me, I'm sure we will get more people in the coming weeks who feel the same.

I have not even had a reply from my MP

3 x £240 = £720 transferred to Justin yesterday, papers to follow.

Mark,

Justin usually updates the site on Friday but do you think that he should tell 'everyone' how much has been raised/people paid up? I personally think he should just email people who have paid up as it just gives extra info to WB. If and when we get near our target, the affected borrowers who just want to observe, won't put their hand in their pockets if they think we are near the suggested target and merely leave it to others.

Reply to the comment left by "Jackie Kay" at "20/11/2013 - 09:06":

I agree Jackie . I know its not what we want but if the conversation Mark had last night was not a hoax call then I don't think it will be long before the Directors of West Brom are contacting Justin and the legal team.

If they really are hoping that we wont raise enough money, but if we do they will scrap the idea then it makes sense for them to try and get an agreement with those that have paid up.

Assume 6700 with only one mortgage each and a conservative estimate of £150 extra interest per mortgage.

Additional interest to be raised.Just over £12m. That is on the low side . I think it was stated somewhere between £15 and £18m.

So far we have around 250 paid up mortgages registered.

That means . That's just £450 000 per annum.

Why would they risk losing millions for the sake of half a million and a quiet life. They can see that without 118 the only thing they have to contend with is a few complaints and the FOS.

If you think they wouldn't do this because it wouldn't be fair ! Then how come we are where we are now ?

Added to that they already seem to have identified a load of mortgages that they are not increasing , or at least not at the moment. Those that start with a 9.So they are not committed to treating everyone the same.

We should ask ourselves what would we do in their situation faced with this.

Risk going to Court, all those costs, all the costs of the FOS, employee dissatisfaction and losing £15m plus per year

Or a confidential agreement and drop half a million or so on anticipated income ?

At the end of the day, this is not going to go on for 15 plus years . Once the Bank of England base rate starts to increase, and it will, they will reduce the additional premium. So it will probably be additional income for them for around 5 -7 years .

Now , like most people on this site I would prefer it to go to Court because I genuinely feel that we have a strong case and I would prefer this to be sorted once and for all. I don't want to have to go through all this again with the next group of sharks. Having said that I think we are better prepared for the next time.

But faced with the option of a guaranteed tracker that I signed up for and the risk of losing in Court and opening it up to all other lenders, I really do not know which way I would vote.

However, if this option was open to us and we had not got enough funds to take it to Court and no guarantee of raising those additional funds it has to be a no brainer.

I keep banging on this point , but if I was on the site but had not got my money and documents to Justin I would be getting a bit nervous now. I would be very worried that Justin and his team were asked to stop taking additional numbers while discussions were in place.

I would really appreciate others thoughts on this at this stage ?

Dean