Bank of Ireland increase differential on tracker rates

Reply to the comment left by "Mark Alexander" at "14/11/2013 - 09:43":

Hi Mark,
Funnily enough I was just about to post myself about repossession.

As you know i stopped paying my additional payments by DD & set up S/O's for the original amount until this BoI rate rise issue is sorted out one way or the other. Last week I received letters threatening to seek possession on all three properties. Because of the hassle factor, I've just cleared the arrears & am waiting to see the overall out come.

BoI's 'System' just kept on churning out the standard stuff totally ignoring my complaints as if i was just going into arrears without contacting them, Not the case.

Let's hope it goes Paul's way. If it does it may not create a binding legal precedent on all cases at this stage but it's a good start

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

Hi Paul,

I may misreading your comments but are you representing a client who has gone into arrears as a result of the SVR increase last year rather than the increase in tracker differential ?

If so that is a very interesting argument. Presume your argument to do with the BOE rate compared to SVR .... I could be misreading your comment though.

Denise

Reply to the comment left by "Denise Donovan" at "15/11/2013 - 11:39":

You are reading it right

Feeling very despondent. Lodged my complaint with FOS in March 2013. They "updated" me in June and October 2013, saying they are considering how to take my and similar complaints forward. I decided to ring them today and they tell me there is nothing new. They are considering all complaints, but any further action by FOS "has been put on hold" until the FO makes a decision on how to take these complaints forward. And they have no timescale in mind for when this should be done by. Feeling very frustrated...

Reply to the comment left by "Theresa McAllister" at "15/11/2013 - 12:33":

Maybe you should write a letter to your MP about this?
.

Reply to the comment left by "Paul Brindley" at "15/11/2013 - 12:23":

That's v interesting. I currently have 3 mortgages on variable rate with HBOS. RBS and ITL.

Would be interested in the outcome. Other than the bank being BOI I don't think the argument is the same as increasing the differential for trackers.

Currently SVR in the market at the moment range from 3.99 to 5.2 (Skipton). BOI rates are pretty consistent and same as the post office SVR.

If you win would affect the market for SVR as a whole !!

It could. This afternoon's problem is that the bank has asked for Monday's hearing to be adjourned. We won't know when to until Monday... watch this space.

BTW, I am fighting their recapitalise at our expense argument, so there is a good degree of common ground between the resi SVR I'm fighting and the BTL trackers

Reply to the comment left by "Paul Brindley" at "15/11/2013 - 16:33":

I never thought you could actually argue against a SVR increase. I really think if you win this could affect other SVR increases from other banks. Which would affect a huge amount of borrowers, myself included.

All other banks have increased their SVR although the base rate has remained low. The main reason being due to cost of borrowing for banks being signicantly higher than BOE rate of 0.25 and subsidising loss making tracker products.

Interestng article in DailyMail

http://www.thisismoney.co.uk/money/mortgageshome/article-1687576/What-mortgage-rates.html

With regard to SVR increases:

5. Will my lender hike my standard variable rate?

A number of mortgage borrowers have fallen victim to lenders hiking their standard variable rates, despite the base rate remaining stable.

Santander announced it would raise its SVR for an estimated 300,000 borrowers in mid-August

Halifax had been the biggest name to do this when it announced it was bumping its SVR from 3.5 per cent to 3.99 per cent in spring.

Some RBS and NatWest borrowers also suffered a recent hike, as have Co-op, Clydesdale and Yorkshire Bank customers and Bank of Ireland borrowers.

Skipton Building Society did it too when its SVR soared from 3.5 per cent to 4.95 per cent. It had previously pledged its SVR would never be more than 3 per cent above base rate and had reduced it accordingly as the Bank of England cut rates. To change its SVR, Skipton had to cite 'exceptional circumstances'.
A number of small building societies, including Marsden, Scottish, Cambidge, Kent Reliance and Accord Mortgages, have also raised SVRs since the base rate hit rock bottom.

Other lenders like Nationwide have introduced a new SVR - it has a new one at 3.99 per cent, instead of 2.5 per cent, for new borrowers and those remortgaging.
Borrowers with smaller societies or lenders shut to new business are most at risk of seeing SVRs raised. Previously it was thought that those with larger societies or banks should be safe but the Halifax and RBS moves put paid to that view.

Never forget than without a Nationwide-style base rate lock guarantee, your SVR could be hiked at any time, as could a discount rate linked to it.