I read about the court case where borrowers tried unsuccessfully to overturn West Brom’s decision to raise its tracker rate mortgage rate even though the Bank of England base rate has not gone up. I believe Bank of Ireland also did this. Are other lenders likely to do the same? Like the borrowers in the West Brom case I was under the impression that a lifetime tracker means the interest rate follows base rate for the life of the mortgage. I have a tracker buy to let mortgage with BM Solutions.
It is very unlikely that all lenders will follow the route taken by West Brom; however, if you read your mortgage contract very carefully, you will most likely find a clause which allows the lender to change the rate whenever they like if they deem it necessary. This is to protect themselves against unforeseen events.
Buy to let mortgages don't come without their risks. For more information on the risks involved take a look at our risks and borrowing criteria section.
1st January 0001