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

Text Size

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?


Share This Article


Comments

Lucy McKenna

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

6:30 AM, 14th February 2014, About 11 years ago

i can get into the secure forum but I can't see any posts, is there a blip or am I missing something, can't even get the welcome message

GHH 64

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

7:28 AM, 14th February 2014, About 11 years ago

Reply to Colin Childs @13/2/14 @22.51

Cheers Colin - you might guess that I was involved way back then in writing what is now the history of the PO /BOI relationship but I could not possibly comment!

An issue has arisen in the last few days which is leading me to make a complaint to BOI/FOS about the integrity of the BOI complaints process I sense there may be a wider 'public interest' dimension to this. I'll keep you posted later

Mark Alexander - Founder of Property118

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

8:11 AM, 14th February 2014, About 11 years ago

Reply to the comment left by "LS " at "14/02/2014 - 06:30":

Hi Lucy

I have emailed you my mobile number, please call me so that I can try to identify the problem.
.

Lucy McKenna

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

18:18 PM, 15th February 2014, About 11 years ago

Hi, i seem to have a problem with the secure forum, I have added up dozens of posts against people's names but I can only see 11 posts altogether, 2 pages, I have put on 3 questions and had no replies, (but I don't expect them over the weekend so that is not the problem)

Lucy McKenna

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

19:51 PM, 15th February 2014, About 11 years ago

Reply to the comment left by "LS " at "15/02/2014 - 18:18":

Perhaps I should have put this comment on the secure forum, please reply there and if on Monday I can't see the reply I will email you Mark. Thanks.

ian

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

20:36 PM, 15th February 2014, About 11 years ago

Reply to the comment left by "LS " at "15/02/2014 - 19:51":

LS, not totally sure but it looks like the members list is combined with WB ?

Mark Alexander - Founder of Property118

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

9:29 AM, 16th February 2014, About 11 years ago

Reply to the comment left by "LS " at "15/02/2014 - 18:18":

When you say you have added up dozens of posts next to peoples names, what exactly do you mean?

I can only see a dozen or so posts in total.

The BoI secure forum seems to be working fine and I can see some of your posts. It is very quiet though compared to the West Brom forum. Have people lost interest?
.

Lucy McKenna

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

9:38 AM, 16th February 2014, About 11 years ago

Reply to the comment left by "Mark Alexander" at "16/02/2014 - 09:29":

Good question Mark, when we have such a good case and as I see it we have so much to gain. I feel confident we can do it. We all need to pull together the more people that join the less it costs everyone. I am hopeful of getting a newspaper article arranged tomorrow in the popular press, hopefully that will generate some new blood.

Please go to the secure forum I have explained what I am seeing. There is a column "posts" against everyones name e.g. I see you have posted 53 times and Justin 8, I won't name other people.

Darrell G

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

9:53 AM, 16th February 2014, About 11 years ago

Hi Mark,

Are we to assume that roughly everyone thats joined/been invited to the secure forum are people prepared to contribute further to fight the case against BoI?

I assume that the secure forum is quiet as we're all waiting for the meeting. thats my take on it.

Ive cc'd you too on an email to Justin.

Tricia Collick

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

10:29 AM, 16th February 2014, About 11 years ago

Reply to the comment left by "Darrell G" at "16/02/2014 - 09:53":

Hi Darrell,
I just posted a suggestion to the secure forum that it notifies (like this one) when there is a new post, most people (like me, unfortunately) are just too busy or lazy to look every day.
A prompt and link would help, even if you then have to log on.

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Tax Planning Book Now