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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david louden

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11:32 AM, 25th July 2014, About 10 years ago

Justin, email sent.

Thanks

Fed Up Landlord

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18:35 PM, 25th July 2014, About 10 years ago

Justin trying to overcome apathy is hard work. I have enough trouble trying to get 50% of a development interested in Right To Manage. Then getting them to put their hands in their pockets to fund it initially and getting it all back once RTM is delivered. So I really do empathise with you on this and appreciate the (unpaid) work that both Mark and yourself have put in.

Ever Hopeful Landlord

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8:27 AM, 4th August 2014, About 10 years ago

B.O.I back in profit wonder if i could do similar thing go and rob my tenants when they least suspected it? and with the full backing of the powers that be maybe i could be BACK IN PROFIT .

Tricia Collick

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15:05 PM, 19th August 2014, About 10 years ago

Reply to the comment left by "Paul Anderton" at "04/08/2014 - 08:27":

I just had a call and an email from:
David Rogers
Adjudicator
Financial Ombudsman Service

Explained he was allocated my complaint, apologised for the delay, couldn't give more detail but told me to contact him in the mean time if I had any questions.
Asked if I had had a questionaire.I haven't so he will send me one.

Wondering if they have been stirred up........

Darrell G

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15:11 PM, 19th August 2014, About 10 years ago

Reply to the comment left by "Tricia Collick" at "19/08/2014 - 15:05":

Tricia,

Wouldn't mind something to be 'Stirred up' I'm being to feel this might be dead in the water?

Tricia Collick

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15:20 PM, 19th August 2014, About 10 years ago

Darell,
I hope not...wonder if those of us who comitted could pay more and those who want to join later, pay a premium which would return to those who paid to have their mortgage included n the action.
Trying to think of a way of including mortgages in the action where people can't afford to join now but could pay back when we win....

Mark Alexander - Founder of Property118

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15:24 PM, 19th August 2014, About 10 years ago

Reply to the comment left by "Tricia Collick" at "19/08/2014 - 15:20":

The problem here is that there are too many hangers on hoping the decision reversed for everybody without them having to put their hand in their pockets or sacrifice and overpayments. The problem with this is that without enough people signing up the BoI will win by default. It is such a shame and I can't work out why the BoI campaign did so well and this one hasn't. If anything, there should be far more people signed up to the BoI campaign simply because there are around twice as many people affected.
.

Tricia Collick

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15:39 PM, 19th August 2014, About 10 years ago

Reply to the comment left by "Mark Alexander" at "19/08/2014 - 15:24":

Hi Mark,
I think you mean the West Brom case did well?

I would gladly invest a little more , if only to get you going.
Those who aren't committed should be ashamed if their reasons are anything other that they simply can't afford it but they are trying to jump on our investment.
The rest of us have put money up front to help you win.
Unless you get support I am concerned Darrel might be right....

Can we not help those genuinly strugglng to commit their motgage ?

Mark Alexander - Founder of Property118

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15:52 PM, 19th August 2014, About 10 years ago

Reply to the comment left by "Tricia Collick" at "19/08/2014 - 15:39":

Are over 12,000 people vs hilt struggling?
.

Tricia Collick

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16:00 PM, 19th August 2014, About 10 years ago

If we could offer them an 'in' for a pemium if they pay later.

We need their mortgage comitted for the insurer.

Just trying to find a way.....

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