Bank of Ireland increase differential on tracker rates

I also suggest that everyone files a complaint to the intermediary who sold the Bank of Ireland mortgage to them for mis-selling. We thought we bought a base rate tracker product, not something where the Bank of Ireland could make up the interest rate whenever they felt like it. That ability of the Bank of Ireland was never explained by the intermediary; hence it was mis-sold.

If it is subsequently established that the Bank of Ireland cannot change the interest rate whenever they like, then the intermediary is in the clear. If Bank of Ireland can change the interest rate, it was mis-sold.

In any case, lodging a complaint against the intermediaries will set them against Bank of Ireland; they will be seriously annoyed because they will not want all the trouble it will bring.

Intermediaries will be much less interested in selling Bank of Ireland products because they cannot trust Bank of Ireland not to cause them problems, and hence Bank of Ireland gets fewer new customers!

Just read my letter, it applies to a residential morgatge taken out in 2003. An increase from 1.35% to 4.49% certainly wont get any of my business. Lucky enough to have equity so I can tell BOI where to go, but I would rather not have the hassle or pay BOI £195 for the privelage.
I see about 12000 people are affected by this, if they can all move then BOI will pocket about £1.5m in cash from the admin fee to move these morgatges off their books. I rekon thats a pretty cynical reason to do this. My terms do not permit them to charge an early cancellation fee, so that offer wasnt BOI trying to be nice either.
Checked my original offer of loan front page states Base+0.85% Term and that is what I understood it would be. Last page has a clause which referes to 6(m) in the conditions booklet (2001) which seems to give them impunity to do this.

Ill complain and make them work hard to get rid of me, I hope the FOS gets involved and says this is unfair to customers but I aint going to hold my breath for it.

I posted earlier, and it is good to see that this forum has gathered momentum, somebody said never trust the BOI again, and I think that is something we must all remember, but maybe we should also remember B & W who put us there.

Do we remember the richest man in Ireland went bankrupt a year a two back, I wonder if he had any loans outstanding, I do not know , but everyone can make their own presumption.

I think the BOI should take on board we will remember, we are professional businessmen why would we forget, I for one never use a bad supplier twice, and that includes banks, financial advisers and indeed a poor tradesman.

I got out, but I was not happy to do so, keep complaining, regulated loans or not, there is fair practice in business and this does not seem fair, after all it was not us that forgot about regulations, it was the banks that forgot and got us all in the mess were in, what now we pay for their mistakes.

Take it to Europe if you all have to, the BOI deserves to fail.

RF

Hi Guys,

Your cases might fall down due to the fact that MCOB Rules (Mortgage Conduct of Business) applied to Regulated Mortgage Contracts after 31st October 2004.

Before this date adherence to the rules was voluntary.

You might find the FSA can not get involved for this reason.

Maybe someone else can check the validity of this point.

I hope this helps.

The report in the link below is off topic, but does show that if enough people kick up a stink about this, then maybe the BOI might have a change of heart.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/9901035/Nationwide-to-leave-benefit-claimants-homeless.html

I think the best angle of attack here is likely to be "unfair contract terms"

See this link to the OFT website which talks about how tenants can deal with unfair terms in landlords contracts >>> http://www.oft.gov.uk/shared_oft/reports/unfair_contract_terms/oft356.pdf

I see the Guardian has picked this up in an article today, should start to provoke some informed comment on wether or not this small print term is actually enforcable.

http://www.guardian.co.uk/money/2013/mar/02/bank-of-ireland-mortgage-rates-double-triple

Question for me is should I jump out from BOI now (there arnt any other deals as good as this one available now so I will deffinately pay more) or risk staying with them whilst fighting as an unfair condition, then find in another year everything is even more expensive.

It would be interesting to hear what HMRC think about this! With interest rates being at record lows, lots of landlords are paying greater amounts of tax on their rental profits. BOI are depriving them of this revenue.

If you look at this link here it says "Last year, Manchester Building Society upped tracker rates for many customers who took out mortgages in 2004 or earlier. It meant some borrowers now pay 4.74% instead of their previous 0.99% rate."

http://www.moneysavingexpert.com/news/mortgages/2013/02/boi-motgage

You can see the trend right? - BOI have probably considered the cost and effectiveness of legal challenges against Manchester Building Society and thought it would be worth making the reprehensible hike in rate.

I think it is definitely lodging a complaint with the FOS and in addition taking legal action for Unfair Contract if possible.

I have posted the following on several of the big Newspaper websites this morning, if you are affected please do something similar:-

Well over 50 landlords have already left comments on the Property118 forum since a BoI customer posted a cry for help after opening his post on Thursday morning this week. He has 10 affected mortgages.

It would appear from subsequent posts that only mortgages pre 2004 are affected, something to do with a change in regulation and also the banks T&C's.

Apparently the FSA have said they are "not interested" as buy to let isn't regulated, however, those affected are furious at this as banks are regulated by the FSA and one of the FSA's guiding principles is "Treating Customers Fairly".

It apparently costs a bank £500 to deal with each case submitted to the Financial Ombudsman Service, it costs the complainant nothing! See where this is going?

Several posters on the Property118 forum have said they are submitting one complaint for every affected mortgage.

There is also talk of a class action against BoI based on unfair contract terms on the grounds that it was not clear in their marketing or their offer letters that the "differential" could be varied. Does this breache advertising standards rules which state that such matters must be "clear, fair and not misleading". The clauses the BOI are relying on are buried deep into the small print in a mortgage conditions brochure and appear to conflict with the basis of the terms in their mortgage offer letters. Also, the BoI have stated the Irish Nationals are not affected - a case for the European Courts of Rights?

Link to forum thread >>> http://www.property118.com/index.php/bank-of-ireland-increase-differential/37002/