Bank of Ireland increase differential on tracker rates

@Denise2007

You need to get that draft letter off to the BOI a quickly as possible as they are allowed up to 8 weeks to give their Final Response.

Recently had a similar problem with the HSBC, they want to up my differential by 3% to 4.5% above BBR. Anybody else had this?

Industry Observer very good point about loans and savings
Nobody seems to understand the concept of offset!!!
NEVER keep savings with the same institution as a your loans or bank accounts.
Remember there are only a few banks in the UK.
For example it is pointless putting savings in a Halifax savings account if you have a BM Solutions mortgage.
They are the same organsation!!
I think the FSA has a list of who is in which banking group.
I would be inclined to put savings with a building society; a major one, but possibly spread around other BS as this will give you possible track history with them if you ever go for a mortgage with them.
This whole BOI; whilst not directly affecting me is of utmost importance to other BTL borrowers.
Other lenders may well be taking inspiration from BOI and us other supposedly sitting pretty LL could have the smile wiped off our faces when those letters that BOI customers are receiving start landing on our doormats.
No LL can make informed objective decisions on business risk if a lender states one thing and then does another to suit themselves.
No borrower could factor in the variables that a lender might choose to adjust.
As a LL you would basically be signing up to a mortgage product; but which meant that the lender could do anything at anytime for whatever reason to the interest rate...........completely barking!!
So you might think you have a Fixed rate BOE tracker; but in reality you haven't as the bank states it can change the rules and conditions as it likes.
How many LL would sign up for a mortgage deal like that!!!
The terms they lenders use should surely describe accurately the product.
To me a Fixed rate tracker or a mortgage which finishes at a certain rate and then proceeds onto a certain percentage ABBR is exactly that.
If these lenders could just change thing anytime they liked because they mad bad business decisions; no LL could operate a viable business.
What has happened and is happening with BOI BTL LL customers is extremely worrying for all of us other LL with other lenders with similar tracker products.
I think as far as the BOI situation has occurred the responses and expertise that is being imparted on this site just shows the power of the internet and quite frankly this web site.
To be able to collate informed opinion so quickly with a view to formulating a rebuttal strategy is reassuring for all the LL who are not yet presently affected.
It is good to see that we are not alone.
Sites like this are priceless when you can see that you are not alone and you may well be able to obtain assistance
Even better it is ALL FREE!!
Let's hope other lenders don't follow suit; and that possibly this experience will result in MA putting together a proforma rebuttal strategy if ever another lender tries it on!!
All very worrying I have to say.
I hope you BOI clients who have been seemingly been stitched up by BOI win!!
This because a win for you will possibly put off other lenders trying the same thing on non-BOI BTL mortgages!!
Fingers crossed on the part of ALL mortgaged LL that you win the issue and put BOI firmly in their place!

@Paul Barrett
I think you have some good opinions and I have seen you post elsewhere in this forum.

One thing to note is that these mortgages were pre 2004 and before the FSA took control of Regulated Mortgage Contracts..

I believe that since then the FSA more accurately described what a tracker should be and therefore I think this sort of contract could not be drafted since FSA control.

If you look here at the link below you will see a quote from Jane Clemetson, a lawyer from London who has one of the affected mortgages but has quoted that "it does say they can do this"

You can see her whole quote in that link.

http://www.thisismoney.co.uk/money/mortgageshome/article-2285901/Bank-Ireland-Bristol--West-tracker-mortgage-borrowers-large-rate-hikes.html?ito=feeds-newsxml

What do you think?

Aside from the financial reasons, these customers must fight this for at least two very good and important non financial reasons.

1. Because BOI must hear their dissatisfiations and should fund that process through the FOS

2. That the BOI deserves to loose credibility and image for taking this move

RE: Paul Barrett

Thank you for your support. We need a few thousand people to contact the FOS including LL who are not directly affected. Please ring FOS on 0800234567 to complaint on our behalf for extra support. I have already rang them 4 times and rang BOI another 4 times so far. The number for BOI is 08003457512 just in case you want to ring them to let them have your say.
The clause BOI is refering to should be advertised as part of the selling of the tracker and no part of terms and conditions clause. Nobody would have purchase the tracker if the knew the tracker could change to variable due to advese market conditions. Bankers should STOP getting bonuses and reduce their salaries. They cannot expect customers to pay for their mistakes.
I will contact watchdog this week as advised by Mark and others. Also freecycle.
I will contact watchdog this week and the freecycle to get more people on the case.

Maria, Remember what i posted earlier... We all must write a letter of complaint to the BoI first or the FOB wont take up your complaint.

1, Letters of complaint & disgust to BoI
2, Wait for reply
3, Ombudsman
4, Cancel you DD’s & set up standing orders for the original amounts you deem correct whilst in dispute. Maybe another letter to BoI after you’ve written to the Ombudsman to clarify you intentions.

See later post suggestions too re your letters from Mark Alexander 4/3/13 at 20.58.

RE: RICHARD KENT
We tood our tracker mortgage in October 2004 and we had the same letter with the increase from 2.25 to 4.99 from 01/05/13. I do not understand. The FSA is incorrect because we should all be treated fairly as customers regardless when we took the mortgage. A tracker is a tracker for the term or until the mortgage is redeemed.

It's interesting that BTL borrowers don't seem to be in possession of a copy of the mortgage conditions at the root of this change by BoI (at least that's the impression I'm getting from contributions to this forum) - but a copy of the conditions has been made available from a Residential borrower. Maybe it's splitting hairs but is it correct that conditions from a document titled Residential Mortgage Conditions should be being invoked on BTL mortgages? Is it possibly also the reason why BTL borrowers were not supplied with a copy of the conditions - maybe B&W staff didn't make the connection to send out a Residential mortgage terms document to BTL borrowers.

RE: DARREL G
I have already complaint to BOI by letter but I have send it via email as an attachement to Tom Rawlings (complaints Manager) of BOI and they confirmed they will reply within 14 days. I have also complaint to the FOS by phone. I know they cannot do anything until the final letter from BOI but FOS will still lodge all the complaints over the phone prior to final letter. We need to know the statistics daily. Please ring FOS and you can find out.

@ Maria,

I'm sorry, I should have stated the date more clearly, which I did in my other posts.

The FSA took control on 31st October 2004.

To my knowledge, this is why the FSA are mostly powerless in this case.

If you think this is not the case please post your comments here.

Please look at my earlier posts regarding this.