Fixed Rate Loan Case Studies

We are acting on behalf of farmers (and many other business owners) who have taken out a fixed rate loan.

As specialists in all types of banking dispute claims, we act on behalf of those clients who wish to make a complaint against their bank.

We cover all types of claims but notably claims for damages arising from fixed rate loans and amended loan terms. We have run, and continue to do so, cases against Clydesdale bank, RBS, Lloyds, AMC and several others.

We have a proven track record of success in this area and have successfully negotiated the return of break costs on fixed rate loans, the cancellation of break costs and reimbursement of interest on behalf of our farming clients.

Case Study 1

Farmer entered into a fixed rate loan with Clydesdale Bank in April 2008 for an amount of £570,000. The loan restructured existing debt held previously with another bank. The farmer had always borrowed on a variable rate basis, but Clydesdale persuaded him that the provision of known monthly payments was a key advantage. The loan became fixed in April 2008 for 20 years, at a rate of 5.37%.

In October 2011, faced with paying interest at 5.37% plus margin, whilst Base Rate stood at 0.50%, the farmer asked the bank if he could transfer to a variable rate basis. The bank said he could, but the break cost would be £137,000. Faced with those charges, the farmer had little choice but to remain on the fixed rate basis.

In May last year, we sent a letter of complaint to the bank on the farmer’s behalf challenging the validity of the break cost. In September, the bank partially upheld the complaint, deciding that the fixed rate term of 20 years had been too long. They instead retroactively shortened the fixed rate term. The redress offered provided the farmer with cash back of £43,000, and the loan is now on a variable rate basis of 0.50% rather than 5.37% for the remaining term of 13 years. The potential break cost is removed, allowing the farmer to re-bank if necessary.

Case Study 2

Farmer previously had a fixed rate loan with the Clydesdale Bank which was taken in March 2009 at a fixed rate of 3.67% for 10 years. Faced with paying high fixed rates the farmer moved to a different bank in September 2012, and by so doing paid a break cost of £81,000 cash. Despite having paid the break cost to the bank in 2012, the farmer wanted to pursue its repayment. We entered a claim of the farmer’s behalf, and the bank recently repaid the £81,000 plus interest thereon at 8%.

Case Study 3

Farmer agreed a fixed rate loan over 5 years denominated in the € currency. The amount was €470,000 and it was to be repaid using the Single Farm Payment. The bank assured the farmer that he faced no exchange risk. In the event, the bank structured the loan incorrectly, so at maturity the farmer still owed €74,000 which he did not have. The bank took the amount from his £ account causing an unauthorized overdraft. The bank also set up 2 € accounts and would convert € SFPs into £, and then back again creating a loss to the farmer each time, costing approximately £7,000 each year. Additionally when the annual payment date of the SFP moved to February from December, the bank continued to take loan repayments in December, causing an unauthorized overdraft and hefty charges. We raised a complaint to the bank in June last year, and entered a claim for £105,000 on behalf of the farmer, citing unexplained foreign exchange exposure and losses.

Case Study 4

Farmer had a loan facility with the bank for an amount of £420,000 which was to be repaid over 5 years from SFPs which would be taken in £. At inception the farmer told the bank that the amount was not enough for his needs given outflows of cash. The bank informed him that given the security held (estimated £2m) they would increase the facility if needed. The loan amount was periodically exceeded but the bank then refused to increase it, and the farmer’s loan margin was increased by the bank from 1.50% to 4.00%, and then 6.00% as a result. The bank said the increases were needed because its own costs had risen. The bank threatened to reduce the working overdraft. A complaint was raised under which it was pointed out that the bank had agreed not to remove loan facilities during a complaint process. The bank agreed to reduce the margin retroactively back to 4.00% and refund the difference. We have cited breach of contractual terms and have since taken the case on the farmer’s behalf to the Financial Ombudsman Service.

Case Study 5

Farmer had a £230,000 fixed rate loan with the bank dating from 2006, and when he had a need to borrow additional funds in 2010, the bank embedded some break cost, and put him on a larger fixed rate loan for £320,000 for an extended term of 8 years. Recently the farmer felt the banking relationship had broken down, and wished to move to another bank. A break cost of £28,000 prevented him from doing this. The farmer felt betrayed with the bank and bitter that the first break cost was embedded, and that the renegotiated term left him with an even higher (unfathomable) cost of exit.

We entered a direct complaint on his behalf. The bank offered to resolve the complaint by placing the loan on a variable rate basis from the beginning of 2015 onwards. This meant a small cash refund for the farmer (£8900), and a rebate of interest on interest paid. The break cost of £28,000 is now cancelled allowing the farmer to re-bank, or keep the loan on what are now decent terms.

Personal Injury Case Studies

Case Study 1

Trainee warehouse worker who had heavy metal racking fall against his leg breaking both bones in the lower leg. Liability was admitted and we organised rehabilitation for the physical injuries by way of physiotherapy and cognitive behavioural therapy for the anxiety and panic attacks that he experienced following the accident. Also had him assessed to see whether removal of the metalwork in his leg would aid his recovery. Client required support by way of interim payments while re-training as a joiner and claim was settled in the sum of £45,000.


Case Study 2

Cyclist on his way to work cycling along the inside of a queue of stationary traffic. A taxi decided to cut through a gap in the line of traffic and crossed straight in front of client who was unable to avoid a collision. Taxi driver and his insurers denied liability and then made an offer of a 50/50 split on that aspect of the claim. We issued Court proceedings and dealt with a counterclaim from the taxi driver for damage to his vehicle. The claim went close to trial before settling on the basis that the taxi driver was 80% responsible for the accident. Client received £3,400.


Case Study 3

Client was working in a large chill store with moving racks of food products. A colleague moved one of the racks while client was working in an aisle. The rack was supposed to have kick bars to stop its movement if it came into contact with anything solid but the kick bars were defective. Client had his feet and ankles crushed between the rack and a loaded pallet before a colleague heard his screams and moved the rack. Client had a lot of financial difficulties as a result of being off work for several weeks and his priority was to settle the claim once the worst of his symptoms had settled. We managed to conclude the claim within seven months for a settlement of over £9,000.

Emma Aitchison

Emma Aitchison

Gateshead

0191 482 1152

Email me
Philip Ashley

Philip Ashley

Penrith

01768 868989

Email me
Beth Bamber

Beth Bamber

Carlisle

01228 593939

Email me
Alistair Bell

Alistair Bell

Carlisle

01228 593939

Email me
Natalie Bell

Natalie Bell

Gateshead

0191 482 7008

Email me
Nicola Broyan

Nicola Broyan

Penrith

01768 868 989

Email me
Tony Butterworth

Tony Butterworth

Carlisle Penrith

01228 593939
01768 868989

Email me
Richard Butterworth

Richard Butterworth

Hebden Bridge

01228 904041

Email me
Anne-Marie Capstick

Anne-Marie Capstick

Carlisle

01228 593939

Email me
John Chuku

John Chuku

Carlisle

01228 593939

Email me
John Cook

John Cook

Carlisle Gateshead

01228 593939
0191 482 7456

Email me
Jonathan Ditchburn

Jonathan Ditchburn

Carlisle

01228 593939

Email me
Samantha Donovan

Samantha Donovan

Penrith

01768 868989

Email me
Gill Dubyk

Gill Dubyk

Carlisle

01228 593939

Email me
Jared Duffy

Jared Duffy

Hebden Bridge

01422 524133

Email me
Gemma Duncan

Gemma Duncan

Carlisle

01228 593939

Email me
Yvonne Durkin

Yvonne Durkin

Hebden Bridge

01422 849222

Email me
Ashley Elliot

Ashley Elliot

Carlisle

01228 593939

Email me
Charlotte Excel

Charlotte Excel

Gateshead

0191 482 7007

Email me
Jessica Fenwick

Jessica Fenwick

Gateshead

0191 482 7004

Email me
Rebecca Ferris

Rebecca Ferris

Penrith

01768 868989

Email me
Laura Goode

Laura Goode

Penrith

01768 868989

Email me
Grant Harrison

Grant Harrison

Carlisle

01228 593939

Email me
Carole Hill

Carole Hill

Carlisle

01228 593939

Email me
Andrew Kirkpatrick

Andrew Kirkpatrick

Carlisle

01228 593939

Email me
Christine Mason

Christine Mason

Penrith

01768 868989

Email me
Dave Mitchell

Dave Mitchell

Carlisle

01228 593939

Email me
Mandy Moreton

Mandy Moreton

Hebden Bridge

01422 849222

Email me
Verity Mutch

Verity Mutch

Penrith

Email me
Catherine Oakley

Dr Catherine Oakley

Carlisle

01228 593939

Email me
Christine Peat

Christine Peat

Carlisle

01228 593939

Email me
Nadeem Pervaz

Nadeem Pervaz

Carlisle (Botchergate)

01228 739907

Email me
Katie Richardson

Katie Richardson

Gateshead

0191 482 7458

Email me
Mark Roche

Mark Roche

Gateshead

0191 482 7005

Email me
Graeme Ross

Graeme Ross

Carlisle

01228 593939

Email me
Claire Scott

Claire Scott

Carlisle

01228 593939

Email me
Adele Siddle

Adele Siddle

Gateshead

0191 482 7003

Email me
Paul Sunderland

Paul Sunderland

Carlisle

01228 593939

Email me
Danielle Taylor

Danielle Taylor

Carlisle

01228 593939

Email me
Craig Taylor

Craig Taylor

Carlisle

01228 593939

Email me
Laura Thomas

Laura Thomas

Gateshead

0191 482 7006

Email me
Bill Thwaytes

Bill Thwaytes

Penrith

01768 868989

Email me
Stephen Unwin

Stephen Unwin

Carlisle

01228 593939

Email me
Lewis Walker

Lewis Walker

Carlisle (Botchergate)

01228 739907

Email me
Lizzie Warrilow

Lizzie Warrilow

Carlisle

01228 593939

Email me
Chris Waugh

Chris Waugh

Penrith

01768 868989

Email me
Rebekah West

Rebekah West

Gateshead

0191 482 7452

Email me

Many thanks to Yvonne for all your help and support with our sale and purchase. We'll gladly recommend your services to any of our friends.

Free legal advice clinic

Wills, probate and future planning including: care costs, lasting powers of attorney, probate, tax planning, wills, pre-paid funeral plans. Free review of existing wills and power of attorney.

A Financial Adviser independent of Butterworths will also be present during our surgeries to answer any queries with regards to Retirement, Investment and Protection Planning.

  • Longtown - Community Centre: 10am-1pm, First Thursday of every month
  • Alston - Town Hall: 10am-1pm, Last Thursday of every month (excluding December)
  • Silloth - St. Andrews Church Hall: 10am-12.30pm, Last Friday morning of every month (excluding December)
  • Aspatria - West Street Medical Practice: 1pm- 3.30pm, Last Friday afternoon of every month (excluding December)