Bank of Ireland increase differential on tracker rates

Reply to the comment left by "LucyM " at "08/11/2013 - 22:17":

Lucy, yes it is of course. I was just pointing out that rates could potentially go a lot higher. You say almost double which is true but they are still very low and unfortunate though it may be if you can't afford that then you could be in a lot of trouble. My first mortgage in 1990 went to 15%. The only good likelihood is that there won't be a double whammy of increased differential if rates go up as it won't be necessary. Of course I don't know that for certain and it is another reason to try to keep the existing differential as when rates do go up they probably wouldn't bring it down again.

Paul from the work you have done and your forensic analysis of the BOI accounts, do you think they can validate the reasons for increasing the differential?

I'm in court with my client on Monday. We'll find out then... more like invalidate than validate...

Paul I am impressed. Have you already got BOI in Court on this then?

Can't say too much at the moment. We all need to be very careful on this forum - there may be trolls watching!

Reply to the comment left by "Paul Brindley" at "13/11/2013 - 14:08":

To me an internet forum is like chatting to a stranger down the pub. I know nothing about you nor you about me. Personally my eye is on the macro level, and not just "generalisations" either. As the issues are complex and far from resolved. So I'll happily sit back, wait and watch with interest while events unfold.

Reply to the comment left by "Paul Brindley" at "13/11/2013 - 18:58":

HI Paul,

I’ve been reading your posts with interest. I am also a qualified accountant so it has been interesting reading your points. I would also point out that I was affected by the increase on a property that I purchased which I have now sold as being a landlord is certainly not easy and had a bad run of troublesome tenants so have given up !

I am not entirely convinced referring to accounts referring to 2012 is relevant as this was before the increase.

With regard to your point on the rates increase. I suspect you haven’t goggled the history on the increase. If you had you would be aware that Bank of Ireland UK had not increased its variable rate since August 2007 when it increased last year. Up until March 2012 it was 2.99%. See link: http://www.theguardian.com/money/2012/mar/07/bank-of-ireland-hits-mortgage-borrowers

Unfortunately for the consumers in the Irish market it hasn’t been 2.99% for some time. Therefore when it increased by .50% it was already significantly higher than rates by UK customers. See attached link http://www.independent.ie/business/personal-finance/boi-pushes-up-variable-rate-by-05pc-26890743.html

I hope you're not relying on this points in your argument but would imagine you're not.

After your comments I did read through the annual statements for 2012 and couldn't find anything other than points supporting Bank of Ireland i.e. a loss of 2m and a paragraph on an increase in capital required to be held as a result Basel II and Solvency II. I am actually working in the insurance sector and well aware of the impact of Solvency II.

I think the argument is more related to a clause in the contract rather than the accounts but I could be wrong if you found something ... I think best bet is a clever solicitor/barrister.

Variable rates for UK Bank of Ireland residential variable mortgage rate is 4.49 %.

Rates for Bank of Ireland ROI variable mortgage rates are below.

Variable LTV 75% 4.50%

Reply to the comment left by "Colin Childs" at "13/11/2013 - 20:17":

It's worse than the pub, it's really a lot more open, with the enemy listening in! The point I was making, but not effectively, was that high level information, while possibly good background information, doesn't help resolve a legal issue because the outcome of legal disputes is always determined by the detail. And in this case, there is a lot of detail, which is highly relevant but from what I can see no one here has noticed. And this is a shame as with 1,000 or so eyes, you should have done and be far more advanced than you are. Some improved case management strategy needed me thinks.

Reply to the comment left by "Denise Donovan" at "13/11/2013 - 20:24":

Hi Denise, if you crawl through all the financial statements from 2010 through to the announcements of the 1st November 2013, you should spot the flaws in the BOI's arguments supporting the SVR rise.

You could try using the CEO's powerpoint presentations on the group's results, that's to say the board's own figures and words, to fight them.

Looking at the 2012 results in isolation won't work - they'll give you some clues, but won't be of any major help.

Thanks for the information on the other aspects, I was aware... and the expected contra arguments catered for.

Reply to the comment left by "Paul Brindley" at "13/11/2013 - 22:45":

It was very interesting to chat with you over the telephone this morning.

The case you have in Court next week to defend a client against BoI's case to seek possession, based on mortgages arrears caused by the BoI increased differential, is using very similar if not identical arguments we are now discussing with our QC.

I have left a message for Justin Selig summarising our telephone conversation and have suggested that he makes contact with you will a view to combining resources.
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