Money

Major update on mortgage prisoners as judge makes ruling in TSB case

Published

2 hours ago

September 25, 2024

Major update on mortgage prisoners as judge makes ruling in TSB case

THOUSANDS of borrowers who claim they are ‘mortgage prisoners’ have been ruled against by a high court judge.

The case was brought forward by former Northern Rock mortgage holders who claim TSB Bank charged them unfair interest rates on their “Whistletree” mortgages.

Northern Rock mortgage holders have been dealt another blowCredit: Alamy

The borrowers claim they have been stuck paying a standard variable rate (SVR) 2.29% higher than TSB’s own rate, in some cases for up to eight years.

The bank opposed the claims, and said that charging borrowers different rates is a basic feature of the mortgage market.

In the ruling, Judge Nicholas Thompsell said TSB has not breached the terms of the borrowers’ mortgage contracts.

The case, led by borrowers’ lawyer Tim Lord KC, focused on Northern Rock customers whose mortgages were transferred to TSB after the bank collapsed in 2008.

Lord argued that many customers were unable to switch to cheaper rates or move to another lender because stricter mortgage rules introduced in 2014 meant they couldn’t pass new affordability checks.

He claimed this left them mortgage prisoners, with TSB “disproportionately profiting” from the situation.

But TSB, represented by Sonia Tolaney KC, said the bank offers different products to customers with varying risk profiles, and that this was “neither surprising nor unfair.”

In his 49-page ruling, Judge Thompsell agreed, stating that TSB was following the same SVR Northern Rock had previously applied.

He ruled that the rate, now called the ‘Whistletree SVR’, is simply a continuation of the original rate and that TSB was acting within the terms of the mortgage contracts.

Following the ruling, a TSB spokesperson said: “We welcome the court’s decision today, which recognises that TSB acted in accordance with the terms of Whistletree mortgage contracts.”

TSB to close another 36 bank branches and axe 250 jobs – full list of locations affected

TSB added that more than two-thirds of affected customers had switched to a new mortgage product or settled their mortgages since 2016.

The borrowers lost this round but their legal team isn’t giving up.

Matthew Patching, a partner at law firm Harcus Parker, said: “Our clients are disappointed with the result, but are looking forward to progressing their claims to the next stage.”

A further hearing is expected to take place in the case.

How is the aftermath of Northen Rock still being felt?

Mum of four and self-employed hairdresser has had to pay more than £91,000 extra on her mortgage since 2008

Mortgage prisoner Rebecca Wendel is currently paying 9.79% interest on her home loan.

This means that her mortgage bill is £2,150 a month, which is up from £1,049 in August 2022, when she was still paying over the market rate at 6.75%.

Since the collapse of Northern Rock in 2008, which saw her loan sold to Heliodor Mortgages, part of Topaz Finance, she has been paying excessive amounts.

Sadly this is not uncommon, with Rebecca making up just one of 200,000 homeowners who had their mortgages sold to finance companies, which have continued to charge above market rates for the loans.

As a result, these people have become known as mortgage prisoners because the stricter lending restrictions mean they cannot pass affordability checks which would allow them to access lower rates.

What is a mortgage prisoner?

A mortgage prisoner is a homeowner who is unable to switch to a better mortgage deal, even though they are keeping up to date on their payments.

Mortgage prisoners are often trapped with their existing mortgage, paying more money than they need to.

This is because when an introductory mortgage rate ends, the borrower typically moves on to the lender’s SVR, which is usually more expensive than the previous rate.

In 2021, the Financial Conduct Authority (FCA) estimated that there were 47,000 mortgage prisoners in the UK.

Source link

Money

B&Q shoppers rush to buy 80p hot tub must have perfect for keeping away Autumn chill in 95% off clearance

Published

10 mins ago

September 25, 2024

NewsAdmin

B&Q shoppers have been hot-footing it down to their local store to bag a hot tub accessory which is ideal for the chiller autumn temperatures.

The homewares store is currently selling a “CleverSpa Grey Square Canopy” for just 80p each in a clearance sale, with the original retail price being £15.

B&Q originally sold the CleverSpa canopy for £15 but is now heavily reducedCredit: B&Q

That’s a huge reduction of 95 per cent.

The polyester canopy which fits over the top of a CleverSpa hot tub, shielding you from the elements, measures 75.5cm by 187cm.

However, the bargain seems to have been hugely popular already as currently B&Qs website says “this product is currently out of stock”.

According to the product description: “It will keep you cool on sunny days with 50+ UPF protection, keep you sheltered from the elements and provide you with a little privacy too!”

The canopy also has a mesh panel which “ensures that the wind doesn’t lift the canopy once in place”.

It also says the product can be easily cleaned with a wet soft cloth.

For comparison, B&Q is selling a “Lay-Z-Spa black and grey dome spa canopy” for £150.

We recommend you search on the B&Q website to see if the product is in a store near you, before making the decision to buy online.

To find your nearest outlet use the Store Locator tool on their website.

Shopping discounts – How to make savings and find the best bargains

It’s often useful to shop for outdoor items such as these at the end of the summer season, as they are much less in demand so are sold at much lower prices.

When searching for the perfect item, be sure to also shop around using the search tool and filter functions on a range of sites.

The price toggle when surfing websites is perfect for setting your own budget and shopping within a particular range.

The “sort by” tool can also be your best friend, allowing you to view the lowest priced items first, and spot all the best deals.

Comparing prices between websites also helps you make sure you’re getting the right deal for the right product.

How to bag a bargain

SUN Savers Editor Lana Clements explains how to find a cut-price item and bag a bargain…

Big names regularly offer discounts or special lower prices for members, among other perks.

Sales are when you can pick up a real steal.

Retailers usually have periodic promotions that tie into payday at the end of the month or Bank Holiday weekends, so keep a lookout and shop when these deals are on.

Sign up to mailing lists and you’ll also be first to know of special offers. It can be worth following retailers on social media too.

When buying online, always do a search for money off codes or vouchers that you can use vouchercodes.co.uk and myvouchercodes.co.uk are just two sites that round up promotions by retailer.

Scanner apps are useful to have on your phone. Trolley.co.uk app has a scanner that you can use to compare prices on branded items when out shopping.

Bargain hunters can also use B&M’s scanner in the app to find discounts in-store before staff have marked them out.

And always check if you can get cashback before paying which in effect means you’ll get some of your money back or a discount on the item.