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

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17:28 PM, 8th May 2015, About 10 years ago

Reply to the comment left by "Richard Gregg" at "08/05/2015 - 17:20":

PS if we don't hit the target all funds will be repaid so you can rest assured that you will not lose out by committing now.
.

Black Panther

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17:42 PM, 8th May 2015, About 10 years ago

WHat about extending the date? it might give more time for people to hear about it and decide to support the campaign - Once the election stories have run their course, there might be room for other 'stories' such as this one.

Have the National Press been made aware of what the plans are? We should have a Press Conference next week, and/or hold a noisy demonstration with placards outside the BoI offices or outside Parliament / Downing Street - something to cause commotion and bring some much needed coverage of this.

We've got as good an opportunity as we'll ever have, to do something about the banking 'thieves' now. Let's do it !

Mark Alexander - Founder of Property118

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17:47 PM, 8th May 2015, About 10 years ago

Reply to the comment left by "Black Panther" at "08/05/2015 - 17:42":

It's not possible to extend unfortunately, we only have a three month window of opportunity to apply for a Judicial Revue for our test case. That three month clock started ticking when her complaint to the FOS was declined without having fully considered her evidence.

The National Press have been consulted but have chosen not to run the story but they have intimated they would do so if there are enough initial adopters committed and the test case is granted permission for a Judicial Review to proceed.
.

Black Panther

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18:53 PM, 8th May 2015, About 10 years ago

Reply to the comment left by "Mark Alexander" at "08/05/2015 - 17:47":

well then i suggest those committed to holding the Bank(s) to account, get together and organise something ourselves, as suggested previously, to bring this to national attention, and maybe that way, more people will come on board.

Alternatively, (and given we have very little time left) we should contact some high net worth individuals (who are landlords), who may cover the shortfall required to bring this to a Judicial Review. I have some ideas of whom we could approach (but for obvious reasons will not name them here).

Mark Alexander - Founder of Property118

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18:59 PM, 8th May 2015, About 10 years ago

Anybody want to volunteer for this? Seriously, I haven't got time. First step would be to arrange a meeting. All other suggestions welcome
.

Black Panther

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21:12 PM, 8th May 2015, About 10 years ago

Well, with what little time we have left, It's worth a shot, trying to contact aforementioned landlords. I'll do this and if I get anywhere will report back.

Tricia Collick

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8:25 AM, 9th May 2015, About 10 years ago

Reply to the comment left by "Black Panther" at "08/05/2015 - 21:12":

for my comment, see the secure forum..

Concerned about my BOI mortgage

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14:19 PM, 15th May 2015, About 10 years ago

What is the current number of sign-ups for the judicial review?

I've left a message with Cotswold Barristers to discuss a couple of points before committing.

Who else is in from here? Today is the deadline! We've got to make this happen we cannot let BoI get away with this.

Black Panther

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15:49 PM, 15th May 2015, About 10 years ago

Reply to the comment left by "Tricia Collick" at "09/05/2015 - 08:25":

HOw do I get onto the 'secure forum' ?

Tricia Collick

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19:25 PM, 15th May 2015, About 10 years ago

Reply to the comment left by "Black Panther" at "15/05/2015 - 15:49":

Hi Black Panther, I can't remember exactly how we were signed up by propert118 but they will help.

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