You are here: Home - Mortgages - Remortgage - News -

Mortgage prisoners make £800m legal claim against TSB

Written by: Shekina Tuahene
A legal claim has been brought against TSB worth up to £800m by mortgage borrowers who claim they have been trapped into paying high rates by the group.

The claims relate to TSB’s subsidiary Whistletree, which was set up in 2016 to manage Northern Rock mortgages acquired from the government’s holding firm UK Asset Resolution (UKAR).

TSB purchased the £3.3bn of mortgages held by approximately 200 homeowners. 

It has been claimed that the mortgage holders have overpaid £50,000 in interest as they allege Whistletree has almost doubled the rates since the loans were bought. The group also claim that until recently, borrowers were not allowed to transfer onto TSB rates. 

Law firm Harcus Parker is bringing the case to the High Court this autumn and has said up to 27,000 customers could potentially make a claim. 

‘Devastating impact on the lives of homeowners’

Matthew Patching, senior associate at Harcus Parker, said: “Our clients have been treated terribly by TSB: they have been charged interest on their mortgages at rates significantly higher than those charged to other similar customers at the same bank.   

“This has had a real and devastating impact on the lives of homeowners who, other than happening to take out a mortgage with Northern Rock prior to the global financial crisis, are often identical to large numbers of TSB’s other customers.” 

‘Treat customers fairly’

A spokesperson for TSB said: “TSB is aware of potential action proposed by Harcus Parker and will robustly defend its position.  

“We are committed to treating our Whistletree customers fairly. TSB took ownership of the Whistletree mortgages in 2016 and subsequently created access to product transfers for customers who did not previously have access to them.

“Since then, over two-thirds of Whistletree customers have either transferred to a new Whistletree product or closed their mortgage with Whistletree. We write to customers twice a year to remind them about the opportunity to switch.” 

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Seven ways to get help with energy bills this winter

We knew today’s announcement was going to be painful, but it’s still a shock to the system. When this kick...

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week