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

Text Size

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?


Share This Article


Comments

Chris Bunn

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

10:39 AM, 21st July 2013, About 12 years ago

I have tried to regester with regard to joining the class action against BOI and paying into the fund.When I fill in the details it says that I have done so already but I know i havent paid anything or sent in any details.Is it possable to get someone to contact me or resend infomation I need to join.
Kind Regards
Chris Bunn

Fed Up Landlord

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:28 AM, 23rd July 2013, About 12 years ago

Just struck another "small blow for Landlordkind". Have written to Royal and Sun Alliance who sell add on property insurance for BOI and told them:

"As BOI has arbitrarily increased tracker mortgage rates from 2.25% to 4.99% for upwards of 13,500 customers, myself included, regretfully I can no longer morally deal with a business that has connections with them"

I have moved by block policy to another insurer on renewal. Will it make any difference? Probably not. But how may RSA customers are there in the 13,500 affected borrowers?

Mark Alexander - Founder of Property118

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

11:39 AM, 23rd July 2013, About 12 years ago

Reply to the comment left by "Gary Nock" at "23/07/2013 - 11:28":

Nice one Gary 😉

Did you check out our "Landlords Buying Group" for insurance? If not see >>> http://www.property118.com/landlords-insurance-landlords-buying-group/

Mark Alexander - Founder of Property118

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

17:45 PM, 25th July 2013, About 12 years ago

Hello all

I just wanted to add a update to let you know we are still beavering away in the background. Only yesterday I had a long chat with a journalist at FT Adviser who have since published this srticle >>> http://www.ftadviser.com/2013/07/24/mortgages/mortgage-products/fos-and-fca-scrutinise-boi-mortgage-rate-rise-c0H8lmHn4ra2YCmQSHdZrI/article.html

Mark Alexander - Founder of Property118

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

12:59 PM, 29th July 2013, About 12 years ago

Reply to the comment left by "Chris Bunn" at "21/07/2013 - 10:39":

Hi Chris

Has anybody been in touch yet?

If not, please email your contact details to me and i will forward them to Justin. My email address is mark@property118.com
.

Mark Alexander - Founder of Property118

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

16:10 PM, 13th August 2013, About 11 years ago

FOS receives 300 complaints on Bank of Ireland mortgage rate hike

This headline appeared today in the Mortgage strategy Magazine - see >>> http://www.mortgagestrategy.co.uk/latest-news/fos-receives-300-complaints-on-bank-of-ireland-mortgage-rate-hike/1075811.article

It would be good to get more support to keep funding Justin and his team to keep up the pressure. If you've come across any more landlords which are not signed up to the Class action, please give them a nudge 😉
.
.

Darrell G

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

18:48 PM, 14th August 2013, About 11 years ago

Reply to the comment left by "Mark Alexander" at "13/08/2013 - 16:10":

Hi Mark, I'm amazed its only 300 complaints! What have the rest been doing....taking the crazy & unfair rate rise on the chin.

FYi - Im getting hassled from BoI re not paying the new amount, but remain firm that this matter is still in dispute & i will only pay the original amount via Standing Order until this dispute is sorted out.

Clive Booth

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

8:54 AM, 21st August 2013, About 11 years ago

I have ben watching this row develop with considerable interest. I have one BOI mortgage which was originally taken out with Bristol & West. I have not received any notification of change of rate and still pay the BOE plus 1.75% rate. I have checked my paperwork and can find nothing about changing rates. Not sure why my particular deal is different.

Mark Alexander - Founder of Property118

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

9:14 AM, 21st August 2013, About 11 years ago

Reply to the comment left by "Clive Booth" at "21/08/2013 - 08:54":

Hi Clive

It's probably because your mortgage was taken out or switched to a different product after October 2004.
.

David Lawrenson

Become a Member

If you login or become a member you can view this members profile, comments, posts and send them messages!

Sign Up

12:08 PM, 22nd August 2013, About 11 years ago

Mr. Selig: "However, the FCA’s conclusion was based on numerous assumptions, based on information provided to it by the bank, some of which is not correct in the case of the borrowers represented by this firm".

Mmm.... Exactly what kind of a regulator is Martin Wheatly or rather, what kind of system is it in which the FCA can simply accept a bank's assurances and information?

I am astounded and wonder about Wheatley's letter to Mr. Tyrie. Should he not have waited and investigated people's complaints first?

Perhaps I do not understand the process and proceedures here. But to me it sure seems an odd way for the FCA to deal with an issue.

David Lawrenson
http://www.LettingFocus.com

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership

or

Don't have an account? Sign Up

Landlord Automated Assistant Read More