Henrietta Frew
Senior Associate Solicitor
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Date Published:29 Oct 2018 Last Updated:23 Jul 2021

Trapped by your FirstPlus Second Charge Mortgage? We can help!

Banking & Finance Litigation

FirstPlus Financial Group (a subsidiary of Barclays Bank UK PLC) is alleged to have sold second charge mortgages to a large number of UK homeowners claiming that they were ‘variable rate loans’, which most customers reasonably assumed to mean that their interest rate would be increased or decreased in accordance with changes to interest rates generally. In reality, a number of borrowers have been forced to pay high interest rates of up to 12% per annum throughout the term of their loans, despite the Bank of England base rate falling to a historic low in 2009.

Consequently, a number of borrowers have found it very difficult to pay off their loans, and in some cases are paying back considerably more than they borrowed. There is also a concern that borrowers may face even larger repayments if the base rate increases.

The ramifications of these second charge mortgages are still being felt by many borrowers, who have now become trapped in a mortgage with painfully high interest rates, and are unable to shop around for a better re-mortgage deal because other lenders will not take them on.

Recent Developments

On 22 October 2018, BBC Panorama reported that a number of UK homeowners who had previously taken out mortgages with Northern Rock are still unfairly trapped on unreasonably high interest rates of around 5% per annum, after they were taken over by an aggressive private equity fund.

The circumstances of these homeowners are very similar to those that took out a second charge mortgage with FirstPlus, the key difference being that FirstPlus customers continue to pay much higher interest rates of up to 12% per annum. What, we wonder; would BBC Panorama say to that!

We act for a number of FirstPlus customers who have and continue to suffer at the hands of a lender that is happy to get the benefit when interest rates go up, but does not give its customers the benefit when they go down. Interest clauses within these types of agreements, which weigh heavily in favour of the lender and allow them to vary the interest rate for a wide variety of reasons, could give rise to a number of potential claims.

How can Ellis Jones help you?

If you are trapped in a FirstPlus second charge mortgage with high interest rates, and would like some advice as to your options for bringing a claim, we recommend that you seek independent legal advice as soon as possible, to protect your position.

Ellis Jones Solicitors is currently acting for a number of FirstPlus customers, and has acted upon a number of complaints from clients in relation to the mis-selling of financial products generally. We are experienced in advising and dealing with such
matters, and are here to help you.

If you wish to discuss a potential claim or complaint then please contact Henrietta Dunkley in our specialist Banking and Finance Litigation team, who will be able to offer an initial free consultation.

If you would like to find out more about the issues with FirstPlus and/or mortgage mis-selling generally, further information can be found at the following links:

Firstplus Financial Group Missold Mortgages

Mortgage Mis-Selling