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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Paul Brindley

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12:04 PM, 17th July 2015, About 10 years ago

Reply to the comment left by "Paul Anderton" at "17/07/2015 - 11:23":

Paul, I'm not angry at all, I just believe in telling it the way it is. The truth can appear, I guess, to resemble anger sometimes. And you're right, no one is begging me on the forum, but that'[s just the forum and you have made an assumption there and assumptions are dangerous things. Like the one that there would be a positive WBBS decision that would ease the way forward. And I'm giving my views freely in support of a fellow professional who I see as having given his all and having been taken for a ride by the 99.9% - sure probably not you, but almost all the rest. So I have huge sympathy for him and none for the 99.9% who sat on their hands content to see a guy driven to do the right thing for them taken for a ride. If that's sounds angry I'm sorry, but it's the undeniable truth, and it needs saying. Mark is, I guess, just too polite to say it.

Tricia Collick

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16:36 PM, 17th July 2015, About 10 years ago

Reply to the comment left by "Mark Alexander" at "17/07/2015 - 10:12":

Hi,
I have a call-back (which I booked earlier today) for tuesday but kept trying to call anyway and discovered these good rates are only for residential mortgages, the best I could get for buy-to-let is 3.29 %, no fee fee, 5 years fixed with 5 years tie-in but I have been lent money by family to pay some off first and apparently need to do that before rate switching (which seems to take till next month to do !).
This would make my LTV better.
Trying everything to reduce my monthly payment to the 'banksters'.
With the change in differential I was loosing a little each month.

Mark Alexander - Founder of Property118

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16:38 PM, 17th July 2015, About 10 years ago

Reply to the comment left by "Tricia Collick" at "17/07/2015 - 16:36":

Seems like they have an overspill call centre which is stacking up appointments - also see this comment on the other thread >>> http://www.property118.com/bank-of-ireland-deal/76533/#comment-58953

I did say "first come first served"
.

Richard Gregg

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17:39 PM, 17th July 2015, About 10 years ago

Hi phoned boi this morning got a phone appoint for Tuesday morning ,hoping the swap deal goes smoothly,cannot say I expect much,but wait and see ,many thanks to you mark for bringing it to me attention,will let you know how I get on.As I'm one of the few fully paided up member of the case against the boi rate increase,I'm only to happy to make a donation once the deal goes through ,hope you well be happy with that .many thanks Richard gregg

Mark Alexander - Founder of Property118

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17:40 PM, 17th July 2015, About 10 years ago

Reply to the comment left by "Richard Gregg" at "17/07/2015 - 17:39":

Yes of course! 🙂
.

A SAL

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13:22 PM, 20th July 2015, About 10 years ago

it seems anyone with arrears wont be able to switch.

i have arrears, due to rate increase, but have an informal arrangement in place, still no good, advised have to clear arrears first before they can switch.

Tricia Collick

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18:22 PM, 20th July 2015, About 10 years ago

Reply to the comment left by "abdul salique" at "20/07/2015 - 13:22":

Hi.
While I'm not in arrears, I paid some of the loan off over the weekend thanks to a relative and now I can't switch to a new rate till next month, no guarantee it will still be there....can't get away from these banksters...will keep trying !

Tricia Collick

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18:24 PM, 20th July 2015, About 10 years ago

Hi.
While I'm not in arrears, I paid some of the loan off over the weekend thanks to a relative and now I can't switch to a new rate till next month, no guarantee it will still be there....can't get away from these banksters...will keep trying !

Richard Gregg

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11:18 AM, 23rd July 2015, About 10 years ago

Is this the end of the road as far as going forward against the bank of Ireland rate increase ,there does not seem to be much appetite for it,.if so when will there be a refund of the money which has been deposited into the bar services account.

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21:43 PM, 23rd July 2015, About 10 years ago

Did we ever hear how much more was needed for the judicial review ?

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