Following an influx of complaints over the last year, the Financial Ombudsman has begun responding to customers, siding in favour of the lender West Bromwich Mortgage Company.

The complaints came following a sudden rise in the repayments for buy-to-let customers on a tracker mortgage after the rate was increased, despite there being no change in the Bank of England base rate.

The deluge of customer complaints followed a 2% increase in the rate for just over 6500 buy-to-let customers, who were reportedly advised in September 2013 the increase would be enforced in December 2013. It applied to those with three or more properties, with a least one mortgage being held with the now obsolete West Bromwich Mortgage Company.

While the basis of the complaints was that the ‘key facts’ documentation at no point mentioned the rate may increase – even if the Bank of England rate it should be tracking stayed the same – the full terms and conditions were slightly more detailed. They stipulated that the rate may increase in order to take market conditions into account, and to keep the business effective and competitive.

The Ombudsman letter states that there were justifiable and commercial reasons for the increase. When choosing a career within the mortgage industry, you may be tied to a specific lender or be an intermediary with access to a number of lenders. Once accredited, having passed the end exam following your CeMAP training, your role will be vital in a customer’s house-buying process to ensure that they fully understand how their mortgage will be set up and how it works.

Leave a Reply

Your email address will not be published.