Bank of Ireland 2.99% five year fixed rate sparks outrage

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Bank of IrelandCustomers of The Post Office are controversially being offered a 2.99% five year fixed rate by Bank of Ireland just weeks after the bank wrote to 14,000 of it’s mortgage holders telling them that their tracker rates would see massive hikes due to “exceptional economic conditions”.

It is hardly surprising then that this has renewed anger against the Bank of Ireland’s.

Paul Richard’s, a landlord affected by the Bank of Ireland’s decision to increase tracker rate margins from 1.75% to 4.49% for borrowers who took Bank of Ireland tracker rate mortgages prior to 31st October 2004 said:-

“How can the BOI claim on one hand they need to raise more cash and that cost of borrowing has increased as reasons to increase the EXISTING customers mortgages yet offer new loans at 2.74% ? I think this blows their reasons for increasing our buy to let loans out the window.”

There is no doubt that many will agree.

Perhaps you feel, as I do, that Bank of Ireland might be in a position to appease a very angry mob by allowing those affected by their tracker rate increases to switch to the 2.99% five year fixed rate without paying fees? If the bank have no problem with these customers moving on perhaps they could also waive early repayment charges?

Please feel free to leave your comments below this article. If you are affected by the Bank of Ireland’s decision to increasetracker rate margins, and have not already done so, please consider registering your interest in class action litigation against the bank by completing the form on this thread,

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Comments

  • Gavin says:

    Most likely trying to get the best customers 60% LTV or under. If that’s the case I don’t see the contradiction, its actually sensible.

    If the LTV is 90% then yes you have a case but I doubt it will be.

    Lenders will ever increasingly try and push out the high risk and bring in the low risk borrowers.


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  • Tony Woods says:

    I am not surprised by BOI actions as they did exactly the same to me in 1985 on a commercial investment, it’s just a case of the leopard not changing its spots and in truth they are no different to any other lender just looking after the interest of number 1.I read many of the blogs posted on this site and it amazes me that so many people feel aggrieved by Lenders actions which I see caused in the main by easy money supply and inexperienced people jumping on a get rich quick philosophy four to five years ago. Now because they did not thoroughly think through the inevitable cyclical risks in a business like manner at the time with correct gearing and reserves the proverbial is hitting the fan. Just because Banks would lend outrageous deals on a belief that the bubble would never burst did not mean you had to take it, sometimes in life if you want the good time you have to accept the bad and it’s a case of “buyer beware”. My lesson learnt was in the 80’s and I never fell into that trap again lets hope the punters of the 2000’s will too have learnt but I suspect not, when again as inevitably it will happen money becomes easier and values rise.


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  • Rob says:

    Can I take this opportunity to publicly thank Mark and Justin for taking this on for us all. I have two BTL mortgages and the increase of 2.74% (current 2.25% rising to 4.99%) over the remaining fifteen years of these loans equates to a cost to me of £135,630 at a monthly cost to me of £753. I am sure that our greatest chance of success is a coordinated class action and I am so grateful that Property118 and the guys above are planning a case and therefore giving us a chance to fight it. To get the ball rolling with such high level representation, at such a small charge of £120 is incredible and I urge fellow borrowers to sign up so that we can all be represented in getting behind the cause and fighting this totally unjust action of the Bank of Ireland. Thank you.


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