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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Mark Alexander - Founder of Property118

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18:59 PM, 24th January 2014, About 11 years ago

I have just proof read the email which Justin will be sending to you all next week. Without wishing to steal his thunder, it is VERY good news. Other than that my lips are sealed because the contents are legally privileged to the clients who have instructed him 🙂
.

Lucy McKenna

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19:06 PM, 24th January 2014, About 11 years ago

Reply to the comment left by "Gary Nock" at "24/01/2014 - 18:39":

Well said Gary.

Mark Alexander - Founder of Property118

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19:32 PM, 24th January 2014, About 11 years ago

I have just read all recent posts and called Mark Smith (Barrister-At-Law) as he listened into the telephone conference yesterday with our QC, Justin and Justin Litigation solicitor Alison.

I first met Mark Smith via Linkedin following an advertisement I posted seeking solicitors or Direct Access Barristers willing to sue solicitors on a "no win no fee" basis with regards to the campaigns we are fighting against BoI and WBBS.

The reason I called Mark this evening was to get his thoughts on Paul Brindleys latest suggestion. Mark's advice was IF the legal action against BoI comes to nothing he will consider taking cases on a CFA basis to sue solicitors but to do so now would contradict our own legal arguments.

Note that Mark is not part of Justin's legal team at barrister level, therefore it was extremely noble of Mark to offer this advice.
.

Tricia Collick

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20:13 PM, 24th January 2014, About 11 years ago

Reply to the comment left by "Mark Alexander" at "24/01/2014 - 19:32":

Mark,
I contacted my MP by email , he is very pro-active, I got a lrtter today.
Extract below :
'..regarding you comments which I read with interest.
In order that Ministers are aware of your concerns and to provide you with an official and fully informed response, I have today (20/1) written to Rt Hon George Osborne MP, the chancelor of the exchequer, asking him to consider the points you have raised and to let me have his thoughts at the earliest opportunity.....'
' I will also endeavour to talk to David Morris MP about how I might be able to help support the campaign he is leading on this.....'
I hope therefore he ill join the intersted MPs in the EDM.

In answer to the comments made re:solicitors advice, unfortunaely mine has gone out of business so I doubt I will get far that way !
..

Cheryl Larkin

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20:15 PM, 24th January 2014, About 11 years ago

Mark - Thanks for the regular updates, when you say in your last post "contents are legally privileged to the clients who have instructed him" do you mean the group that paid the original £180 (£150 plus VAT) which I did contribute to or did I miss a further 'group action collection'?

Mark Alexander - Founder of Property118

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20:42 PM, 24th January 2014, About 11 years ago

Reply to the comment left by "Cheryl Larkin" at "24/01/2014 - 20:15":

Hi Cheryl

Yes, I mean the original and only group, therefore you should receive an email from Justin by the middle of next week at the latest. If you don't, please let me know.
.

Andy Jones

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21:27 PM, 24th January 2014, About 11 years ago

Reply to the comment left by "Mark Alexander" at "24/01/2014 - 20:42":

Dear Mark and all concerned, Thank you so much for all you are doing behind the scenes , in front of the scenes and everywhere in between regarding the BOI tracker rate hike. It is hugely appreciated I can assure you. I read yours and Justin's recent posts with interest and was gladdened by the news of promising prospects. I look forward greatly to hearing all about it.

In the mean time I have donated £50 to the marketing fund as suggested to help with the cause. I'm sorry it couldn’t be more but I am already in debt, but I am more in debt with each passing day anyway with the tracker rate hike to my mortgage and so are many of you reading this....so in for a penny, in for a pound sketch!! If anyone out there is hesitating to donate please take the plunge, and help Mark to steer this battle, he simply can’t do it alone unfinanced not to mention the mental energy required to keep it all together and mediate all these different opinions, it must be exhausting.

I believe this campaign is our strongest and best hope for success and if we all chipped in a little more cash it would be of immense benefit to us all. It all adds up and will make the difference to Mark who is doing this on our behalf.
Enough said ... yours hopefully Andy Jones.

Mark Alexander - Founder of Property118

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21:35 PM, 24th January 2014, About 11 years ago

The best way to show appreciation for the work going into this campaign is to follow the lead of Andy Jones by making a donation to the marketing fund and encourage other to do the same, whether they are affected (YET) or not..

Please see >>> http://www.property118.com/much-appreciated/
.

Paul Brindley

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22:56 PM, 24th January 2014, About 11 years ago

Reply to the comment left by "Gary Nock" at "24/01/2014 - 18:39":

Perhaps I should expand ... I think this campaign needs to be conducted on several levels. Firstly it should not be conducted on the shirt tails of the West Brom action, adopting such a wait and see approach demonstrates a level of weakness that does not exist. It should be run on a strict legal basis, as Mr Selig will set out; at the same time on a guerrilla basis, standing outside Post Offices just stating the facts; and thirdly possibly against the relevant solicitors. To sit back and wait for something to happen to sort it all out for you while still paying the BOFI their increased rates makes no sense, at least to me.

ian

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11:01 AM, 25th January 2014, About 11 years ago

Reply to the comment left by "Paul Brindley" at "24/01/2014 - 22:56":

Paul
We cant get affected borrowers interested enough, so standing outside a Post Office getting support from the unaffected general public will be a worthless exercise in my opinion ?

How did your meeting go with your MP ?

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