Bank of Ireland increase differential on tracker rates

Yes I understand

Darrell - yes agree completely but so frustrating.

@PAUL

"Like many I did not receive a copy of 2001 Residential Mortgage Conditions at the time but BOI have sent me a copy. Condition 6. (f) only refers to Variable rates not Tracker rates. I pointed this out to BOI in my complaint but they dismissed it saying it is a printing error. Surely this is a contract and they should have checked it!"

Is this true?? How can they use a clause to which they didn't refer?

Exactly my point, they have told me they will look at it again but I will be referring this and many other points already mentioned to the Ombudsman

Gary on my offer dated may 2002 clause 11 Interest rate special condition- ....... after that the interest rate we charge will track base rate for the remainder of the mortgage period at a fixed differential of 1.75% above base rate unless we change the differential under condition 6(m) of our Residential Mortgage Conditions. Surely this means they are NOT selling a FIXED rate tracker but a Variable Rate mortgage product which was confirmed today when the lady on the phone told me my rate was their Standard Variable Rate.
I have a screen print of Bristol and West available mortgages on 2 Jun 2004 in which all their products very clearly state that at the end of the fixed rate period the interest >> REVERTS TO BBR + 1.75% >> NO MENTION OF VARIABLE RATES !
BOI may have taken advice but they will not win this as their actions are wrong.

To anybody following this thread who hasn't yet registered their interest in the Class Action please see >>> http://www.property118.com/index.php/class-action-litigation-boi-bristol-and-west-mortgages/37248/

I have a BTL mortgage through the a broker called GIRAFFE, which was a subsidiary of BRISTOL AND WEST. I have read with interest their RESIDENTIAL MORTGAGE CONDITIONS 2006 EDITION THREE.

In it under the heading CHARGING INTEREST AT A TRACKER RATE it implies under condition J - UNLESS WE CHANGE THE DIFFERENTIAL (IF ANY) UNDER CONDITION 6(N), WE WILL NOT CHANGE THE TRACKER RATE UNLESS THE BASE RATE CHANGES.

Then referring to 6(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 WE CAN CHANGE THE DIFFERENTIAL IN A WAY THAT IS FAVOURABLE TO YOU.

This is clearly set out, but I never really went through it with a fine tooth comb as the summary of the mortgage offer states initial offer fixed 5.19 until 11/09, and the 1.75% above BOE base rate until 2037.

So on one hand they say things will remain constant, unless they decide to change it..........

I mean whatever next. I shall pursue this matter to the bitter end

@Andrew, I don't understand. Your post raises do msny new questions. Mortgages post 2004 were not affected. Have you had a letter saying your mortgage is affected? If so when did you take it out? When did you receive the letter stating your mortgage was affected? Are the terms post Oct 2004 different to those pre Oct 2004? If so are post 2004 mortgages now affected too? I could go on. Please email me a copy of all correspondence you have, in confidence, to mark@property118.com

Re Mark Garner's note of 9 Apr that said;
"Just spoke to BOI and the lady on the phone said the reason they can increase the pre 2004 mortgage was because it was ‘not regulated’ but post 2004 ‘is regulated’ so they can’t increase the fixed premium over the BOE base rate."

That increases my suspicion previously noted. The likelihood of the T & C's being altered on 1 Nov 04 is probably remote so I am assuming the same terms persisted until withdrawn ( e.g. for Post Office customers?) sometime later.. The reason for the cut off at 31 Oct 04 seems to be that BOI don't want to risk what the FSA would do in respect of the post 31 Oct 04 mortgages, these being within their remit, which could hinder their actions on the pre Oct 04 agreements. FSA effectively told BOI they are powerless on the pre 31 Oct 04. It makes me wonder what FSA did actually say to BOI - they mention "confidential" in their letter to MR Tyrie of theTSC so don't disclose it.

Just had 3 letters from BoI (all seem to be standard churn out) re my increased mortgage payments soon to begin on 3 of my affected mortgages. No mention that these are in dispute or of a complaint pending. I intend cancelling my D/D until resolved & paying the original payments by Bacs.