Property 118 calls on brokers to challenge FOS

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Landlord group Property 118 is calling on mortgage advisers to challenge the Financial Ombudsman Service over its 2014 decision on West Bromwich borrowers.

Property 118 recently won a court case against West Bromwich over raising tracker rates independently of base rate and calling in loans with short notice.

Separately, landlords took their cases to the FOS, but it dismissed the claims in November 2014, saying that the lender was allowed to raise its rates.

Now the landlord group is encouraging brokers and professional indemnity insurers to bring a judicial review against the FOS to avoid a costly PI crisis.

A statement on the Property 118 website by founder Mark Alexander says: “I am am urging all those affected not to raise further complaints to the FOS over negligent advice from their solicitors and mortgage advisers for failing to alert them to the small print which the lenders have relied on and which the FOS have ruled on.

“Each complaint would cost a financial adviser or solicitor £500 and this money would all go into the coffers of the FOS.

“Mortgage brokers in particular know that they get very little sympathy from the FOS (unlike the bigger institutions) so they would be facing a losing battle from day one. Their PI policies would also be at risk and if they get too many claims on those the premiums can go up to a point where it is no longer economical for them to trade.”