MSE News: Buy-to-let borrowers hit by West Brom mortgage hike

brit1234

AGBAGB wrote: »

A well deserved win. This result will end up protecting anyone with a tracker or from having a mortgage called in with no default.

brit1234, your solution is ruled as illegal and as the ruling points out would end up with the forced eviction of thousands of tenants. So you would have families out on the street for the chance that the WB directors would give you an extra 0.1% on your savings rate. You do seem rather heartless.

Rubbish.

Landlords could afford the extra cost as the mortgage costs would of be still far lower than 2008. Its just the greed of landlords willing sacrifice savers money and WB institution.

Remember the lender won ever court battle up to the court of appeal including the high court. The bank had fair emergency conditions written in the terms and conditions for raising the SVR in emergency situations. The landlords should of read these conditions, they were irresponsible not too.

What are you going to do when the Basell III regulations come in and it means higher mortgage rates for buy to let?

silvercar

brit1234 wrote: »

Lets hope West Brom can call in those mortgages to save this institution and protect savers.

Its pure and simple. The lender had conditions that if the mortgage lending turned into a loss they could raise interest rates to save the lender. If the landlords could not be bothered to read the term and conditions on tens or hundreds of thousands of pounds deal then it is not the banks fault.

This judgement could make the lender insolvent so West Brom should call in the loans of those loss making mortgages. The landlords should have repayment vehicles to pay off the interest only mortgages, if not they are committing fraud. We have to save the savers money.

Can you explain the bold please?

Surely the repayment plan for a BTL is to sell up. Nothing else would have been required by the lender, so where is the fraud?