Bank of Ireland increase differential on tracker rates

Bank of Ireland increase differential on tracker rates

10:32 AM, 28th February 2013, About 12 years ago 1862

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The story of the Bank of Ireland decision to increase to the differential (interest rate margin) on  tracker mortgages started on this forum when a professional landlord contacted Property118 within minutes of a letter from Bank of Ireland landing on his door mat. What ensued was outrage from landlords and affected residential mortgage borrowers. The story was quickly picked up by the National Media as it wasn’t just the 13,500 affected borrowers who were worried.

Will this set a precedent for other mortgage lenders to follow?

Property118 reacted by using funds donated to The GOOD Landlords Campaign to underwrite the cost of a barristers opinion on the legality of the Bank of Ireland’s actions. The remainder of this thread,one of the most read and most commented threads of all time on Property118, continues to tell the story as it unfolds.

If you want to skip the story and cut to the chase simply CLICK HERE

Of the 13,500 affected borrowers, 1,200 have had the decision reversed by Bank of Ireland. With additional support and pressure we believe all affected borrowers can and will see justice done.

___________________________________________

Lee, a professional Landlord asks, “help! I have just received a letter from the Bank of Ireland stating they want to increase the differential on my tracker rates.

I have 12 mortgages with the Bank of Ireland previously Bristol and West. I have been on a base rate tracker of 1.75% above base, but now Bank of Ireland are using some fine print claiming they have to recapitalise and saying the ‘new differential will be 4.49%.

How can I fight back?”

The original policy wording seems to be:

6 INTEREST

Charging interest at a tracker rate

(j) Unless we change the differential (if any) under condition 6 (n), we will not change the tracker rate unless the base rate changes.

(m) in condition 6 (n):
– a “positive differential” means a percentage which we add to the base rate to arrive at the tracker rate; and a “negative differential” means a percentage which we subtract from the base rate to arrive at the tracker rate.

(n) We may reduce a positive differential or increase a negative differential at our discretion by giving you not less than seven days written notice. This means that we can change the differential in a way that is favourable to you.

The above seems to indicate that they can reduce the rate in my favour, but not give them the right to increase it. Am I correct?


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Lucy McKenna

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9:38 AM, 26th November 2013, About 11 years ago

Reply to the comment left by "Paul Brindley" at "25/11/2013 - 21:55":

Agree Paul, there must be another way to spin this, to get big publicity. But I can't see many being brave enough to withhold their payments, for fear of the repercussions, so other ways are the best bet. I think the banks generally are in a much worse state than people realise and the government may be sitting back a bit and keeping a low profile and letting them get on with it out of fear. Just look at the scandal of the tactics with the RBS at the moment, , almost forcing people out of business so that a department of their bank can buy up these businesses on the cheap.

Mark Alexander - Founder of Property118

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9:41 AM, 26th November 2013, About 11 years ago

Reply to the comment left by "Paul Brindley" at "26/11/2013 - 09:32":

Agreed, but funding is a major issue. There is no such thing as a sure bet in law as you well know Paul. Would you risk everything you had ever worked for because I know I wouldn't. Without ATE insurance we are screwed. Without the funds to fight this properly professional advisers could simply walk away from a case and say "oops, sorry" and their poor clients would be completely screwed.

If you had everything to lose that you had ever worked for would you personally take on your own strategy which your are suggesting to others? That's a rhetorical question by the way because I'm certain most would not.

However, if you can prove that you are worth a few million net and are willing to put all of that on the line you may be able to convince a few people who also have something to lose to take the chance.
.

Mark Alexander - Founder of Property118

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9:43 AM, 26th November 2013, About 11 years ago

Reply to the comment left by "Mark Alexander" at "26/11/2013 - 09:41":

PS - if you can find a few people who have nothing to lose, because they are already teetering on the verge of insolvency, and you progress on that basis that's a different matter altogether.
.

Paul Brindley

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9:52 AM, 26th November 2013, About 11 years ago

Reply to the comment left by "Mark Alexander" at "26/11/2013 - 09:41":

Which is why we need guerrilla tactics too. Standing outside the UK's main post offices with placards handing out leaflets explaining what's going on might be a start. That and a coordinated digital campaign and targeting of MPs.

Far more needs to be done. If we were the French we'd have blocked the ports by now!

Mark Alexander - Founder of Property118

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10:10 AM, 26th November 2013, About 11 years ago

Reply to the comment left by "Paul Brindley" at "26/11/2013 - 09:52":

I agree Paul, it's the Gorrilla tactics which seem to be driving the West Brom campaign. Would you be prepared to lead this one whilst I focus on West Brom?

If you read through that thread there are already several ideas which have been tried and tested.

It may be worth me, you and Justin having a meeting to discuss strategy. Opening up the funding again seems to be a logical starting point wouldn't you agree?
.

Paul Brindley

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11:34 AM, 26th November 2013, About 11 years ago

Reply to the comment left by "Mark Alexander" at "26/11/2013 - 10:10":

I'm meeting Justin on Thursday ... We'll discuss?

Mark Alexander - Founder of Property118

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11:49 AM, 26th November 2013, About 11 years ago

Reply to the comment left by "Paul Brindley" at "26/11/2013 - 11:34":

I wasn't aware of that and I have other commitments so can't attend. Please keep me in the loop.
.

Lucy McKenna

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8:58 AM, 30th November 2013, About 11 years ago

HI Mark is there a way I can check we are on the class action list, I am pretty sure I filled in the form ages ago but would like to check. thanks L.

Mark Alexander - Founder of Property118

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11:01 AM, 30th November 2013, About 11 years ago

Reply to the comment left by "LucyM " at "30/11/2013 - 08:58":

Hi Lucy, I can confirm that you completed the Class Action Expression of Interest Form on 12th September 2013 at 13:43. I do not get to see Justin's records so I do not know whether you sent papers or fees to become a client of Justin's. This can be checked by contacting ana@lawdepartment.co.uk
.

Lucy McKenna

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11:42 AM, 30th November 2013, About 11 years ago

Thanks Mark, have not heard from Justin so will chase that. That is what was worrying me I know I have paid nothing yet. So will contact Ana for details.

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