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

Fed Up Landlord

Become a Member

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

Sign Up

17:32 PM, 27th February 2015, About 10 years ago

Unfortunately Ladies and Gents unless Mark and the West Brom group manage to appeal the case successfully we are dead in the water. I think 300 people initially registered an interest. When the time came to throw £500 at it on account to start to fund an action I understand 10 of us sent the money. I am looking at paying off that part of the mortgage that is affected. I am fortunate that I can do that. Not everybody can. There was too much standing on the sidelines waiting for the FOS - and look where that got us all. Mark tried his best but you can take a BTL investor to water but you can't make him put his hand in his pocket. Sorry if it's a bit blunt but that's what has happened.

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

17:47 PM, 27th February 2015, About 10 years ago

Reply to the comment left by "Gary Nock" at "27/02/2015 - 17:32":

Gary I had the feeling that people didn't at the time fully appreciate that possibly the BOI case would have been an easier case to win. Somehow we did not pull together by ourselves and were not pulled together either. Eventually it seemed best to wait for the WB case to win. It astounds me that it didn't win first time. I am very optimistic for the appeal, if justice prevails there will be a positive result for everyone, eventually.

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

17:50 PM, 27th February 2015, About 10 years ago

Reply to the comment left by "Gary Nock" at "27/02/2015 - 17:32":

Standing on the sidelines waiting for the FOS should have been enough.

Paul Brindley

Become a Member

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

Sign Up

19:00 PM, 27th February 2015, About 10 years ago

I do find it funny anyone posting here should feel in the slightest surprised.

Why?

No one at the regulator or government care about hurting just 15,000 B of I borrowers when to do the right and proper legal or moral thing will put at risk the entire financial system and millions of other people.

You were always going to be the sacrificial lamb from the very start. This meant the only way you could ever win is if you fought hard in ways that showed the system to be corrupt, if you played dirty, attacked the trustworthiness of the B of I in the eyes of their savers very publically, drew attention to the huge discrepancy to what the B of I were saying to the regulator, savers, borrowers, companies house and shareholders, etc.

18 months on from the date I presented evidence in court the B of I R had no valid legal entitlement to the rate rise, I guess my client is the only one of the 15,000 of you who is sticking 2 fingers firmly up at B of I and not paid the increase. The reason why he's in that position? He had the cohonas to fight. Yeah, and as I say, he's still not paying the increased rate. And no, the B of I hasn't got the cohonas to fight him. They simply don't want me to set a precedent you lot can follow.

Sounds harsh? Yeah, but every word true.

mrs sharp

Become a Member

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

Sign Up

mrs sharp

Become a Member

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

Sign Up

12:09 PM, 3rd March 2015, About 10 years ago

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

21:18 PM, 3rd March 2015, About 10 years ago

Wow Theresa, rather puts my mortgage in prospective. Imagine owing that much!!

Become a Member

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

Sign Up

1:05 AM, 4th March 2015, About 10 years ago

with reference to Paul 's comment - that is exactly what I wanted to do and not pay the increase and incite mass reaction for all to do the same - however - there is the problem of the credit file being marked as late payment - and that stays on your record for 6 years . My credit record is only just come back to acceptable level. Plus how would i have contacted all 15,000 affected , BOI weren't exactly going to give me a list of names . By everyone not paying the increase - it would have taught them a sharp lesson about sharp practice.! i also agree they had no valid reason to increase but have no concrete proof . I also believe now that they are in profit as i can see from Theresa 's post - they should now decrease the level of increase by moving the differential back to where it was before the increase - as it states it can also go down in terms of Mortgage - I would like to have more details Paul on how to fight this - but if your client is definitely not paying the increase and they have not done anything to him - i am going to suggest that its unfair treatment by BOI and that the 14,999 are treated the same if they decide not to pay increase with effect from March 2015 . can i use him as a precedence ????

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

13:15 PM, 12th March 2015, About 10 years ago

I have had my final rejection from FOS.

I replied to my 'adjudicator' :

Following your (FOS) letter of 5 Feb 2015 you gave me until 5th March to reject or accept the ombudsmans decision.

I immediately rejected it as nothing I said had been considered and everything that the bank claimed was believed (without proof).

You have since written to me to let me know that the decision of the Ombudsman is final and that you have closed the file.

You have given me no further opportunity to follow this, I shall therefore take legal advice and detail all those things I told you plus your decision which ignored my information.

I am sorry that I have lost faith in an ombudsman who protects the Banks and not normal people like myself who pay for your existance to protect us.

I shall wait with as much patience as I can muster for Mark and Cotswold Barristers to contact me !

Black Panther

Become a Member

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

Sign Up

13:51 PM, 12th March 2015, About 10 years ago

I too, have had a final decision letter after a second ombudsman 'reviewed' my case in 10 days (despite it taking the first ombudsman nearly 2 years).

I have rejected their decision. I am writing to my MP (following a meeting) expressing my grave concerns about the impartiality (or lack thereof) of the FOS, as they have ignored all my (considerable) evidence and believed everything the Bank has said, disregarding all my evidence.

BTW: THe FOS are not funded by the public, but, wait for it..... they are actually funded by the Banks.... yes, that's right..... they are supposed to protect the public, but are not independent because the Banks fund their very existence.

Why not everyone contact their MP and bring this issue to a wider audience?

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 Automated Assistant Read More