This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-36480101
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| West Bromwich to refund £27.5m to overcharged landlords | West Bromwich to refund £27.5m to overcharged landlords |
| (about 1 hour later) | |
| The West Bromwich Mortgage Company is to refund £27.5m to thousands of landlords who were overcharged. | The West Bromwich Mortgage Company is to refund £27.5m to thousands of landlords who were overcharged. |
| The Appeal Court has ruled that the lender, which is an arm of the West Bromwich Building Society, was wrong to increase its charges for buy-to-let tracker mortgages. | The Appeal Court has ruled that the lender, which is an arm of the West Bromwich Building Society, was wrong to increase its charges for buy-to-let tracker mortgages. |
| In September 2013 it announced a 1.9% increase in its tracker rate, even though base rates had not risen. | In September 2013 it announced a 1.9% increase in its tracker rate, even though base rates had not risen. |
| The lender said it was disappointed, but it had acted to protect its savers. | The lender said it was disappointed, but it had acted to protect its savers. |
| As many as 6,500 landlords with multiple properties now stand to be refunded an average sum of more than £400 each. | As many as 6,500 landlords with multiple properties now stand to be refunded an average sum of more than £400 each. |
| So-called tracker mortgages are supposed to follow the Bank of England's base rate, which has remained at 0.5% since 2009. | |
| Customers | Customers |
| The case was brought by Mark Alexander, a former mortgage broker who subsequently set up an advice website. | The case was brought by Mark Alexander, a former mortgage broker who subsequently set up an advice website. |
| He was backed by around 400 landlords who were in a similar position to him. | He was backed by around 400 landlords who were in a similar position to him. |
| Previously the High Court had ruled against Mr Alexander, but the Court of Appeal has now reversed that decision. | Previously the High Court had ruled against Mr Alexander, but the Court of Appeal has now reversed that decision. |
| The West Bromwich Building Society said it would record a loss in the current financial year as a result, but that its capital position remained strong. | The West Bromwich Building Society said it would record a loss in the current financial year as a result, but that its capital position remained strong. |
| "At all times we acted to ensure we were treating customers fairly and that our approach was in the best interests of the Society and its members as a whole," said Jonathan Westhoff, the company's chief executive. | "At all times we acted to ensure we were treating customers fairly and that our approach was in the best interests of the Society and its members as a whole," said Jonathan Westhoff, the company's chief executive. |
| "We will now contact all affected borrowers and ensure we process promptly any reimbursement they are due." | "We will now contact all affected borrowers and ensure we process promptly any reimbursement they are due." |