Buy-to-Let landlords’ secure a full refund of interest they overpaid to the West Bromwich

Sue Woodall, Director, Solicitor and Head of Astle Paterson’s Conveyancing Department discusses the recent decision of the Court of Appeal which ordered the West Brom to repay tens of millions of pounds to its customers. 

Sue said “The case was brought following a decision in 2013 by a Building Society to increase interest rates by 2% on some of their customers’ buy-to-let mortgages which tracked the Bank of England Base Rate – despite the Bank of England Base Rate remaining at the same level as it has been since 2009. 

Some of the affected customers pooled together and issued a group litigation claim against the Building Society, arguing that the Building Society were not entitled to increase the rates as the Bank of England Base Rate had not increased.

The Building Society argued that they were entitled to do so as there was a clause in the mortgage agreement which stated interest rates could increase above the rate of the Bank of England in certain circumstances.

However, the Court of Appeal accepted the customers’ argument that the Building Society were not entitled to increase the interest rates and therefore the Building Society are now having to contact all affected customers to provide them with a full refund of the additional interest charged.   The total amount to be repaid is thought to be some £27.5 million.”

Should you be looking to buy or sell a property Astle Paterson are Conveyancing Quality Scheme accredited and will advise and assist you through all aspects of your property transaction. 

Please contact our conveyancing department on 01283 531366 or by email at

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