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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Lucy McKenna

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21:21 PM, 16th July 2015, About 9 years ago

5 or 7 year fix is good but what can they do at the end of it? Once bitten..... Restoring the old tracker for the lifetime would be so much better.

Mark Alexander - Founder of Property118

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22:02 PM, 16th July 2015, About 9 years ago

Reply to the comment left by "LS " at "16/07/2015 - 21:21":

I agree, but I'm just the messenger.

I'm certain they haven't put this deal in place to placate those affected by their tracker rates hikes, but it wouldn't be TCF if they refused to give it to you.

After the fixed rate it reverts to their SVR sadly. Who knows what will have happen to property values, lending markets, interest rates and the economy meanwhile? Rhetorical question of course!
.

Cheryl Larkin

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22:53 PM, 16th July 2015, About 9 years ago

Thanks for the info, but I am a little confused that BOI think it ok to offer a lower rate than the one they moved us too when their excuse for changing the original product was the fact that they needed to raise more money!

Mark Alexander - Founder of Property118

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23:17 PM, 16th July 2015, About 9 years ago

Reply to the comment left by "Cheryl Larkin" at "16/07/2015 - 22:53":

I never suggested it was logical, I just shared the fact that such a deal exists.
.

Cheryl Larkin

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7:18 AM, 17th July 2015, About 9 years ago

Reply to the comment left by "Mark Alexander" at "16/07/2015 - 23:17":

Yes and is really appreciated - I just wondered if it added weight to the argument that BOI didn't need to change the deal we had. For those that still have cases open.

Mark Alexander - Founder of Property118

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8:03 AM, 17th July 2015, About 9 years ago

Reply to the comment left by "Cheryl Larkin" at "17/07/2015 - 07:18":

Possibly, but I've lost faith in that going anywhere. The only way to beat a bank is strength in numbers and BoI affected borrowers just don't have the appetite to take on the fight, with just a handful of exceptions of course.

It is unbelievable that after nearly two years of hand work based on thousands begging me for help, when it came to paying for that help less than a dozen came forward.
.

Paul Brindley

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8:32 AM, 17th July 2015, About 9 years ago

Mark, you know my views on this. I can say things as a complete outsider - I'm neither a B of I borrower nor have I spent anything like the time you have - in helping out a friend I came across this B of I issue, and was able to help him out. My view? The 11,488 are sheep with no back bone. The law of the jungle applies out there, they got what they deserved - to be ripped off - and that's what it was, plain and simple, a scam. Sometimes in life you just have to say 'F - this, I'm not going to allow that to happen to me, let's take them on' - and just 0.1 per cent had the moral fortitude and courage to do that. I'd think long and hard before spending your time again trying to protect the public again if I were you - you only have one life to live, we're all short of one thing, time, and frankly the 11,488 are not deserving of your or my time. You, me, all the professionals have far better things to do that waste our time on the 99.9%. Yet they were all very willing to whinge and whine - as evidenced by the fact there are 173 pages just on this part of the forum - and then nothing! Shameful. Oh, and I don't give a damn if this upsets the 99.9%, your views aren't worth a candle.

Ever Hopeful Landlord

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10:08 AM, 17th July 2015, About 9 years ago

Reply to the comment left by "Mark Alexander" at "16/07/2015 - 16:06":

hi mark just been in touch with B.O.I and yes these rates are on offer but it will be a week before an advisor can get in touch , i have been assured that they have no plans to withdraw the rates but hey who knows. thanks for the info and will get in touch one way or the other.

Mark Alexander - Founder of Property118

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10:12 AM, 17th July 2015, About 9 years ago

Reply to the comment left by "Paul Anderton" at "17/07/2015 - 10:08":

I wonder how long the queue is already then?
.

Ever Hopeful Landlord

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11:23 AM, 17th July 2015, About 9 years ago

Reply to the comment left by "Paul Brindley" at "17/07/2015 - 08:32":

wow! angry, as you say complete outsider you seem to be giving your time and views freely i don't see anyone begging you .as someone who signed up early doors with Justin i am also disappointed but i understand why despite the best efforts of mark it fizzled out i don't think the West Brom case helped as it allowed the B.O.I landlords to sit it out and wait,and that result all but killed it .the bottom line with a landlord is profit so they wont throw more money after bad unless there is a very high chance of success and unfortunately that never seemed likely or some accomplished Barrister would have taken it on via a no win no fee contract.

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