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| Version 1 | Version 2 |
|---|---|
| West Bromwich to refund £27.5m to overcharged landlords | West Bromwich to refund £27.5m to overcharged landlords |
| (1 day 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 £4000 each. | |
| So-called tracker mortgages are supposed to follow the Bank of England's base rate, which has remained at 0.5% since 2009. | 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." |