West Bromwich Building Society Miscalculated Mortgages
If you currently have a mortgage with the West Brom or have done in the past, there is substantial chance that you may have been caught up in many of the financial scandals to hit this particular lender and that in turn, that the interest and charges on your borrowing may have been miscalculated.
Originally formed away back in 1849, they embarked on a very aggressive growth strategy at the start of the millennium. This saw them open up their lending to buy to let and commercial borrowing. To fund it, they replicated the Northern Rock model of borrowing funds from the financial markets. In 2009 a phenomenal 31% of all their funding came from that source.
This policy and disastrous lending lead to the last minute rescue in 2009. Their lending book has become completely unbalanced, with its prime mortgage book sitting at just over £2.6 billion, but commercial and buy to let lending coming in at £1.5 billion and £3.1 billion respectively. Bondholders finally agreed to swap over £180 million of debt for a 25% share in future profits.
In June 2016, the Court of Appeal found against a controversial decision that they made in 2013 to increase the interest rate on buy to let loans taken by landlords between 2006 and 2008. They mistakenly believed that the terms and conditions that accompanied these loans offer allowed them to increase interest rate margins. The judge ruled that the very precise details of the respective mortgage offers were how the coordinates of the borrowing should have been run. The decision left West Brom with a compensation bill of £27.5 million. Several thousand customers were affected.
If that wasn’t enough, in June 2014, they also had to admit to charging errors when redeeming mortgages. Again, thousands of customers were forced into paying extra interest. This arose through an incorrect interpretation of mortgage terms and conditions on borrowing taken in the main between 2004 and 2007. Incredibly, no FCA fines have ever been levied against West Brom.
If you currently have a mortgage with West Brom that was taken in 2009 or previously and for initially no less than £80,000 to £100,000, Beat the Banks are offering an entirely free mortgage audit. We can also consider any mortgages for similar opening amounts taken with them after 2000 and repaid a minimum of seven years later.
For more information on how to receive our entirely free mortgage audit, please contact Beat the Banks on 01382 200474 or for free on 0800 193 1234. Or if you live locally, why not simply pop into our office with any of your mortgage paperwork and we can start the audit process immediately. Our hours are 8am-8pm weekdays, except for Fridays when we close at 6pm. On Saturdays it 10am-2pm.