West Bromwich BTL landlords win

westernpromise

http://www.telegraph.co.uk/personal-banking/mortgages/landlords-win-legal-battle-over-lenders-unfair-mortgage-rate-ris/

So BTL lenders can't vary a tracker rate unless the base rate changes, and they can't call in a mortgage that's not in default.

I'm on a 20 year tracker so very happy about this. It will be interesting to see if this sends BTL mortgage rates up. If it does, that suggests that lenders always expected to be able to call in loans as and when it suited them, and that if they can't do this they have to charge more for such loans. If no effecf then it suggests that it was only ever WB who saw the presumed ability to welsh on the loan terms as a valuable clause to have.

carslet

I think that is a victory for common sense and the landlords

mwpt

carslet wrote: »

I think that is a victory for common sense and the landlords

The two are not always mutually exclusive.

westernpromise

carslet wrote: »

I think that is a victory for common sense and the landlords

What was egregious about WB's actions was that they tried to deny that a tracker meant tracker even when preented with their own marketing material. They are clearly idiots.

Thrugelmir

westernpromise wrote: »

It will be interesting to see if this sends BTL mortgage rates up.

Send rates up for other borrowers. As WB are a mutual operation. So someone else will foot the bill. There's no such thing as a free lunch. WB exited the BTL a while back.

What's more interesting will be the wider implications of the judgement. As with any cause there's effect.

WB made a pre tax profit of £13.5 million in the year to 31-March-2016. Judgement is costing £27.5 million. Plus ongoing reduction in income.

westernpromise

The HPC envy brigade have been gloating for a while over their pet idea that Basel III will mean BTL loans will all be called in because of higher capital adequacy requirement on banks.

This judgment (which as it's in the Court of Appeal sets a binding precedent) will probably mean that conclusively can't happen. Basel III is voluntary anyway, which they also don't seem to have noticed, and has been due in 3 years' time for about 6 years now.

So as long as I'm in good standing, my base + 0.79% 20-year tracker BTL mortgage looks good for its remaining 11 years.

I'm starting to believe in karma to be honest. The more that rabble wish ill on others, the more t!ts up it all seems to go for them.

Thrugelmir

westernpromise wrote: »

The HPC envy brigade have been gloating for a while over their pet idea that Basel III will mean BTL loans will all be called in because of higher capital adequacy requirement on banks.

Is that what the BTL brigade were afraid of? Least of their worries I'd of thought. Shows the poor level of understanding these days.

michaels

Wasn't there an Irish bank who did similar and gt away with it? Will that need to be revisited now?

Thrugelmir

michaels wrote: »

Wasn't there an Irish bank who did similar and gt away with it? Will that need to be revisited now?

BOI definately did. Skipton were the first. Also Manchester Building Society I think.

Generali

michaels wrote: »

Wasn't there an Irish bank who did similar and gt away with it? Will that need to be revisited now?

Not necessarily. It would depend on the circumstances of each case. Just because they are superficially the same doesn't make them the same IYSWIM.