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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Baggers

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7:02 AM, 29th January 2014, About 11 years ago

Hi Mark

I contributed to the initial two payments requested of I think £120 and a second one of around £80 does this mean I am privileged to the confidential information? Have you any further news on when this may be released?

Mark Alexander - Founder of Property118

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7:33 AM, 29th January 2014, About 11 years ago

Reply to the comment left by "Dee " at "28/01/2014 - 22:40":

Yes of course 🙂
.

Mark Alexander - Founder of Property118

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8:01 AM, 29th January 2014, About 11 years ago

Reply to the comment left by "Baggers " at "29/01/2014 - 07:02":

On that basis, Yes you will be entitled to the privileged and confidential information.

We received advice from our barrister several months ago and as you will recall, this was used to attempt to convince the OFT, FCA and FOS to fight our case for us. Sadly they declined at that stage and that's when we ran out of money. Since then, great interest has been taken in the case by Justin, our barrister and also a QC from the barrister chambers and they have all been working unpaid on a speculative basis.

I am going to propose to Justin that we write to everybody on the "waiting list" (i.e those who have expressed an interest since we ceased fund-raising) and give them three weeks to instruct and pay the same as everybody else. There are a few hundred of these people. Those who instruct and pay will also receive the confidential and privileged information and will be entitled to make a decision on whether to progress to litigation on the same basis as everybody else. The funds raised from this exercise will be used to pay our legal team for the time they have invested unpaid.

To proceed to litigation will require 150 people to each pay £500 and agree to a further potential liability of £1,000. If the number of instructions is greater than 150 then the liability will fall pro-rata, for example, if there are 300 instructions the additional potential liability will halve.

I would like to think that all paid up members will receive the confidential and privileged information by the end of this week and that all others who have expressed an interest will receive an invitation to participate to stage one level (i.e. to receive the privileged and confidential information) by early next week.
.

Mark Alexander - Founder of Property118

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9:53 AM, 29th January 2014, About 11 years ago

SECURE FORUM

I have spoken to our web-site people about a totally secure forum for paid up members of this campaign group and our professional advisers only. The new forum will be for the purpose of discussing confidential legal matters only. All other PR and related campaign matters are to continue to be discussed in open forum on Property118 in order to continue to attract media attention and new members.

The specifications I have provided are as follows:-

Must sit on an a SSL certified secure domain (similar to the security of online banking)

All members to register their real name and provide a iser name and password.

All registrations to be forwarded for approval by myself or Neil so that we can check against a list of paid up members before any access to the forum is granted.

Forum hidden from all search engines.

The cost of building such a forum will be circa £500 inclusive of VAT.

I intend to use the marketing fund to pay for this and we have sufficient funds in place.

The new secure forum should be online some time next week. I will let you know when it is live and post a link here. Fear not, security will be very tight and nobody will be able to see anything other than the registration page until they create a user account which is subsequently approved by myself or Neil Patterson.

If you can spare a bit more cash to replenish our marketing funds this please see >>> http://www.property118.com/donations/43590/
.

Darrell G

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10:09 AM, 29th January 2014, About 11 years ago

Reply to the comment left by "Mark Alexander" at "29/01/2014 - 09:53":

Hi Mark, Im still here & following with interest.

I suggested this months ago, but all the replies/comments back suggested BoI can easily become an official member/follower, fabricating (or genuinely owning) their own buy to let property.

How can this be protected?

Also, have you considered if say 200 of us 'chip in' & get this overturned for 13500 borrowers, there should be some form of inventive for the initial investors, otherwise most will sit around & let the rest of us do the leg work?

Keep up the good work, Im in for the funding. As your aware 3 of my properties in my portfolio are affected, costing me an additional £7K PA for the term of the mortgage with 15 years left!!!

Mark Alexander - Founder of Property118

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10:22 AM, 29th January 2014, About 11 years ago

Reply to the comment left by "Darrell G" at "29/01/2014 - 10:09":

Hi Darrell

Good to hear you are still with us.

We know who has instructed, paid up and supplied their documentation and ID. Only these people will be approved for access to the secure forum.

It is highly unlikely that any non-contributors to the campaign will benefit from our actions because any judgement will only apply to those named in the legal action.

If/when we win then a far higher fee will be charged for individual actions as that's the only way they can be commercially viable. There will not be an incentive for lawyers to offer "no-win-no-fee" deals off the back of our case on the basis that there will be no compensation from which the legal advisers could deduct their fees, save for refunds of overpayments and claims for costs.
.

Darrell G

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10:26 AM, 29th January 2014, About 11 years ago

Reply to the comment left by "Mark Alexander" at "29/01/2014 - 10:22":

Hi Mark,

Well that should get others off their backsides & out of the wings to help fight the cause, or they'll be left with hefty monthly mortgage repayments. i for one don't want to be on of them!

Keep me posted.

Lucy McKenna

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11:51 AM, 29th January 2014, About 11 years ago

Good News!!!! Below is an extract from our MP Frank Dobson, please email your MP if you haven't already done so, the list of supporters is growing http://www.parliament.uk/edm/2013-14/976 . Mark wrote something for us, so it is only a copy and post job.

I can confirm Mr. Dobson has signed EDM 976 – Conduct of Mortgage Lenders. Please allow time for the Table Office to register his name to the signatories.

Kind regards,

Mili Patel
Researcher to The Rt. Hon. Frank Dobson MP
Member of Parliament for Holborn and St Pancras
House of Commons
LONDON SW1A 0AA

M Jones

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11:52 AM, 29th January 2014, About 11 years ago

For many in the wings it is not a case of 'sitting on our back sides' - for reasons I will not go into at this time, I only became aware of the BOI increase in the Autumn of last year and this forum in September at which point it was too late to join. Since then I have been an active member.
Although I am paid up on the West Brom campaign I have been unable to join the BOI fight as Justin has advised me that collection of funding has ceased.
As soon as I am told that I can join then I'm there with you fighting all the way!

Tricia Collick

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12:02 PM, 29th January 2014, About 11 years ago

Reply to the comment left by "Dee " at "29/01/2014 - 11:51":

I had a reply from my MP saying that he believes EDM process is 'impotent' and he wouldn't sign any more but hewill follow up his interest by hoping to ask at MPs qustion time when he gts an opportunity and will certainly join any debate.
Best I can do , he also said he would stay in touch with the campaign and support anyway he can.

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