As reported  in January (Parliament Gets Tracker Rate Hike Earful)l the landlords actions against West Brom for increasing their Tracker rates is gathering momentum.

West Bromwich Mortgage Company will be handed court papers during the week starting 31st March . More than 250 landlords have signed up and contributed to the legal action.

The property investor Mark Alexander who is spearheading the camping confirmed: “We are over half way towards that target. If we fail to achieve our target everybody will have their money refunded and it will be open season for all mortgage lenders providing tracker rate mortgages to follow suit.”

Alexander is asking the court to rule on two things based on the West Bromwich's papers and documentation: 

Should the company be able to call in loans within 28 days if the borrower has not reneged on payments ?

Should the Company be able to increase the tracker margin ? 

The barrister who is representing West Brom says that they have a very good case as the loans given to borrowers are on the understanding that their rates are kept in line with the Bank Rate. The company states that they have acted properly in raising the rate because of the terms, in small print, that says they can vary borrowers’ interest rates to reflect market conditions.

The leader of the landlords, Mark Alexander, has asked for a settlement instead of court action taking place to which West Brom outrightly refused.

Alexander said: “This would have been significantly quicker and cheaper for all concerned and had massive upsides to West Brom in that the outcome would be confidential. In other words, if West Brom had lost the case, nobody would have ‘officially’ known about it other than those who had already paid to be a member of the campaign group.”

Despite receiving a myriad of complaints from the mutual company's customers about the hike, The Financial Ombudsman has yet to make any decision.

Alexander feels that upon commencement of the legal action then it should be all be finalised, taking into account  any appeals, no later than the end of this year.