Financial specialist wins battle over buy-to-let mortgages
A financial specialist who won a legal fight over buy-to-let mortgages says borrowers have started to collect compensation.
Mark Alexander, a former mortgage broker who has set up an advice website for landlords, last month won the Court of Appeal battle with a mortgage company.
Mr Alexander complained of being unfairly asked to pay more for a buy-to-let mortgage because the West Bromwich Mortgage Company classed him as an investor, not a consumer.
He was unhappy about the way an interest rate had been varied and disagreed that a mortgage company could ''call in performing mortgages'' with 30 days' notice.
About 400 people with identical West Bromwich mortgages had backed Mr Alexander.
The West Bromwich - which is linked to the West Bromwich Building Society - had said customers with three or more buy-to-let properties were not ''regarded as consumers''.
Bosses disputed Mr Alexander's criticisms and argued that terms were fair. They said affected borrowers would be reimbursed - and said the "one-off cost" would be about £27.5 million.
"Mortgage borrowers are now receiving their share of the £27,500,000 payout in respect of over charged interest and compensation," said Mr Alexander, founder of Norwich-based Property118.com.
"I have been inundated with thank you messages of support."