Buy to Let lenders face legal challenge


Lady Justice Statue Old BaileyTwo buy to let lenders are facing a legal challenge, which if successful, could see millions of pounds returned back to private landlords.

Following its successful claim against West Bromwich Building Society, which saw compensation of £27.5 million paid to buy to let landlords, the Property118 action group is now taking action against two more lenders.

Buy to let tracker mortgages

The legal action, against Skipton Building Society and Bank of Ireland relates to their decision to increase interest rates on tracker mortgages, despite the Bank of England leaving rates unchanged.

Tracker mortgages are usually linked to the Bank of England base rate, which until August had remained unchanged at 0.25% for years. However, and despite this, in March 2013 Bank of Ireland increased the interest rates paid by 13,500 mortgage customers. Three years earlier, in 2010, Skipton Building Society made similar changes.

More details about the legal action can be found on the Property118 website, click here to visit it now.