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

brit1234

Brandy4 wrote: »

I have written a letter of complaint for what it's worth but would like to find out more about the class action. We need to fight this together

I think the class action is pretty much dead due to lack of support and complete lack of people willing to pay for it.

Lets hope when the put up mortgage rates they can raise saving rates. Landlords have had cheap mortgages for far too long while they buy up all the first time buyer properties.

We need higher interest rates for a balanced economy.

I welcome West Broms move, if customers don't like it they can simply move mortgage provider.

AGBAGB

Brandy4 wrote: »

I have written a letter of complaint for what it's worth but would like to find out more about the class action. We need to fight this together

The class action is being organised via the web site www.property118.com.

It'll take people, like yourself, to make a stand and be counted.

AGBAGB

brit1234 wrote: »

I think the class action is pretty much dead due to lack of support and complete lack of people willing to pay for it.

Lets hope when the put up mortgage rates they can raise saving rates. Landlords have had cheap mortgages for far too long while they buy up all the first time buyer properties.

We need higher interest rates for a balanced economy.

I welcome West Broms move, if customers don't like it they can simply move mortgage provider.

It sounds like you can predict the future or at least have some knowledge of how many people are required for class action. Can you expand on what you think?

No they won't put up savings rates. But they may use it fund discounted rates to entice new borrowers who will then struggle when they go on to the standard variable rate.

"Landlords have had cheap mortgages for far too long" 4 years cheap rates out of deal that is supposed to last 25 years, the rates started at closer to 7%, West Brom were lapping it up then.

Buy to Let Landlord do not generally compete with first time buyers. They are easily outbid at auctions and are highly unlikely to gazump anyone. You are sadly misinformed if you think otherwise.

Higher interest rates for a balanced economy, unfortunately that wouldn't help ecconomic growth. I would support a narrower margin between what banks lend at compared to what they pay savers. That would hit where it should and not those who signed long term contracts that should be stuck to.

You welcome a financial institution twisting small print to change the meaning of contract. I bet you think you are immune. Maybe it's time to think again.

brit1234

AGBAGB wrote: »

It sounds like you can predict the future or at least have some knowledge of how many people are required for class action. Can you expand on what you think?

Simply momentum has vanished, you are no where near the money you need.

AGBAGB wrote: »

No they won't put up savings rates. But they may use it fund discounted rates to entice new borrowers who will then struggle when they go on to the standard variable rate.

"Westhoff defends his move by saying that it is fairer that these few borrowers take a hit rather than the society’s 424,000 savers, who have already suffered rate cuts over the past year."
http://www.thisismoney.co.uk/money/mortgageshome/article-2427933/JEFF-PRESTRIDGE-Landlords-taking-hit-help-savers.html

"Landlords have had cheap mortgages for far too long" 4 years cheap rates out of deal that is supposed to last 25 years, the rates started at closer to 7%, West Brom where lapping it up then.[/QUOTE]
You have had far more than 4 years or do you forget the rate cuts after dot com bust or 911. They have been simply to low for far too long and caused todays housing bubble and the credit crunch.

AGBAGB wrote: »

Buy to Let Landlord do not generally compete with first time buyers. They are easily outbid at auctions and are highly unlikely to gazump anyone. You are sadly misinformed if you think otherwise.

Your speaking rubbish. The typical property a landlord goes for is a 1-2 bedroom flat or house which is a traditional first time buyer home.

AGBAGB wrote: »

Higher interest rates for a balanced economy, unfortunately that wouldn't help ecconomic growth. I would support a narrower margin between what banks lend at compared to what they pay savers. That would hit where it should and not those who signed long term contracts that should be stuck to.

Yes it would, it would deflate speculative bubbles like the overvalued housing market, kerb inflation on imports, encourage savings allowing for sustainable lending and lead to a more balance economy. All we are doing now is kicking the problems down the road and making them bigger rather than facing the much needed correction.

AGBAGB wrote: »

You welcome a financial institution twisting small print to change the meaning of contract. I bet you think you are immune. Maybe it's time to think again.

No, as a saver and a future home owner I have been punished. My house deposit savings interest are being stolen to bail out irresponsible borrowers like highly geared landlords. :mad:

You complain about a small 2% rise at an interest rate which is far below the credit crunch. If you don't like it move. Savers are suffering far more than you.

AGBAGB

Brit1234, a spirited reply, but your position seems to be unravelling a bit.

Momentum for class action is still there, more people are joining but it may be tight as the law tends to favour those with the deepest pockets.

You quote the chief executive of West Brom. Do you really believe he will put up savings rate because of this? He also states landlords have benefited from strong rental growth, well the government statistics say otherwise.

I'm not sure what kind of interest rate you think would be suitable for the economy? You do seem to suggest it should be fixed and not react to world affairs.

Yes 1-2 bed properties - because a majority of potential occupants choose to rent rather than buy, it is demand lead. Are you looking to purchase this kind of property? I can assure you in many parts of country they are available and cheaper than 2008 prices.

As you are saving for a deposit to purchase a house you might want to consider: A rise in saver rates will boost your savings by, say 5% per year if interest rates where at 7% but then your mortgage rate will be at say 9%. So the balance would be against you, eg. 20K at 5% for 2 years savings V. 80K at 9% for 25 years. In your case a rise in interest rates would be highly detrimental.

You can also consider that the buying power of your savings has increased as a result of a country wide drop in property prices.

I must point out that I do sympathise if you are in London / South East where property prices have been inflated be foreign capital inflows and high financial sector pay and bonuses.

I wish you good luck with your aspirations. And I hope you find the right target for your frustrations.

rate_hike

Brit1234

Put your savings into becoming a landlord then instead of slagging us of.

Thrugelmir

rate_hike wrote: »

Put your savings into becoming a landlord then instead of slagging us of.

That's one issue I have. Property letting is a business not an investment. Many people got sucked in during the HPI years. Whereas pre the invention of BTL , property was the preserve of the capital rich.

Richard_Watters

Just revisiting this thread, most (not all) people's opinions are based on their own vested interests (understandably).

My vested interest is that I'm an affected borrower with a handful of West Brom mortgages. However I'm tying to remain balanced about this.

To date no-one has yet come up with a convincing argument why a clear term in the mortgage offer can be over-ruled by a clause in a separate booklet, not even referred to in the mortgage offer.

Unaffected people I've spoken to about this are all shocked and see it as just another example of Banks (Building Society in this case) being immune to ethical business practices.

I do understand the frustration of First Time Buyers who are priced out of the market, and I have friends and family in this situation. But whatever your opinions and lack of sympathy for Landlords any fair minded person surely accepts that what West Brom are trying to do is at the very least immoral.

Richard_Watters

An update on the action being taken to oppose this action by West Brom can be found here:

http://www.property118.com/tracker-rate-class-actions-update/44117/

Thrugelmir

Richard_Watters wrote: »

any fair minded person surely accepts that what West Brom are trying to do is at the very least immoral.

We live in unprecedented financial times. There's a far bigger game in play which is far from resolved. Another GFC is not out of the question. As far as the WBBS board are concerned they have fiducaries responsibilities that cannot be dismissed out of hand.