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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Fed Up Landlord

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12:31 PM, 17th April 2013, About 12 years ago

Noticed its getting a bit confusing with Gary Smith and me being another Gary so I will be Gary SCN! (Sorry Mark - if it infringes the "advertising protocol" then please moderate it back to Gary N)

Anthony I appreciate your view on the wait and see approach - unfortunately if everyone adopted this then we would not have any finances for a class action. If the concern is that the costs could start to balloon, then we all have our financial limits we are prepared to go to at which point we "bail out". I have been in this position with Right To Manage Schemes where legal costs can be up to 10K so I know what can happen - but as several have posted:

1. £120 is not an absolute fortune;
2. The more who contribute the cheaper it gets;
3. £120 is probably a lot less that one months mortgage increase from the BOI
4. All the work is being done for us in what is becoming a complex and confusing affair.

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13:22 PM, 17th April 2013, About 12 years ago

Signed up to Class Action. Can't let them get away with this without a fight!

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13:31 PM, 17th April 2013, About 12 years ago

@Paul Barrett

Can you elaborate on what a SARN is?

thanks

Ever Hopeful Landlord

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15:14 PM, 17th April 2013, About 12 years ago

hi mark i have been trying to get in touch with justin regarding the class action,you forwarded my details to him,as have i but i Havant as yet made contact, can ireach him through the landlord action number.

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15:21 PM, 17th April 2013, About 12 years ago

Gary Smith
SUBJECT ACCESS RIGHTS NOTICE
This is under the DPA which entitles you to receive ALL info held on you by an organisation.
They can charge £10 for it; though don't have to.
You just write a letter citing the DPA SARN requirement and they SHOULD send you the transcripts of your calls and other info on you.

Mark Alexander - Founder of Property118

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15:21 PM, 17th April 2013, About 12 years ago

Having thought about this I've come to the conclusion that we do not need a private forum. I spoke to Justin this morning and if he needs to communicate with paid up Class Action members he will do so via email. In fact, he is going to be writing to all Class Action members today or tomorrow with instructions on how to proceed with the FOS complaints. It seems only fair to operate in this way, Justin is clearly only going to share professional advice with the people who have paid for it but will no doubt keep people informed on what's going on generally via this forum for as long as he is able to do so. Given that over 13,000 people have now discovered this forum it makes sense to provide updates here. It also ranks very well on Google. Ongoing discussion may well attract new contributers to the Class Action, thus reducing costs for all concerned 🙂

Justin Selig - solicitor

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16:16 PM, 17th April 2013, About 12 years ago

Further to Mark's response, I will be emailing a sample letter to those people who have signed up with us for them to use to write a complaint to the Financial Ombudsman. Whether or not you have signed up with us, it is in everyone's interest to make a complaint to the Ombudsman if you are affected by the rate increase and you have not yet already made a complaint.

Ever Hopeful Landlord

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16:43 PM, 17th April 2013, About 12 years ago

justin as i posted earlier i contacted f.o.s and they said it was nothing to do with them as B.T.L isn't regulated. also tried to contact you to sign up for class action via email, don't know whether you've had chance yet, or not received it .

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18:49 PM, 17th April 2013, About 12 years ago

Paul anderton Go back to 06/04 on this forum Justins instructions are there, you need to send of documents, after you registered hope this helps.

Terry Donohue

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19:52 PM, 17th April 2013, About 12 years ago

In rely to Justin's remarks re emailing a sample letter to those who have joined the class action. I note your comments that all 13000 should write to the ombudsman. My point is if ALL (or as many as (Possible) were to write to the ombudsman would that only be to the good of us all and demonstrate to the ombudsman that we are united? I have paid my money but would like to suggest that this letter be made available to ALL.

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