Landlord Action, in association with Property118.com, has been investigating the possibility of legal action against the Bank of Ireland.
Landlord Action director (and solicitor) Justin Selig has now obtained expert opinion that such an action would have a good chance of success.
The investigation was started with landlords in mind but the legal action will include residential mortgage holders too.
In a statement Landlord Action said: Thousands of landlords are about to see their mortgage payments double, or even triple, after the BoI and Bristol and West wrote to those who took out tracker rate mortgages prior to 31st October 2004, advising that they would be increasing their margin over bank base rate.
“Buy-to-let and residential mortgage holders are incensed because they believed that they were on lifetime tracker mortgages paying a fixed margin over the Bank of England base rate.”
Landlord Action is advising anyone with a BoI or Bristol & West tracker-mortgage (buy-to-let or residential) and who received a letter from them in February 2013, notifying them of the hike, to join the action.
So far almost 300 mortgage holders have requested the forms to sign up.
