Bank of Ireland increase differential on tracker rates
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.
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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?
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Member Since June 2013 - Comments: 1121
3:44 PM, 22nd January 2014, About 12 years ago
Margot James, MP for Halesowen and Stourbridge emailed with Marks email.
Member Since September 2013 - Comments: 232
4:16 PM, 22nd January 2014, About 12 years ago
I have emailed and telephone Mr Geoffrey Clifton-Brown, Cotswold, Gloucestershire. If we can get him on board he will be a great asset.
Can some more BOI people support the cause please.
Member Since June 2013 - Comments: 1121
4:44 PM, 22nd January 2014, About 12 years ago
Reply to the comment left by “Dee ” at “22/01/2014 – 16:16“:
Yes…..it doesn’t cost you anything……honest!
Member Since September 2013 - Comments: 232
4:55 PM, 22nd January 2014, About 12 years ago
Also contacted Frank Dobson Camden London, MP for my husband’s (who is also affected)
Member Since October 2013 - Comments: 35
5:13 PM, 22nd January 2014, About 12 years ago
Emailed to my own MP Alistair McDonnell, my late brothers MP Jeffrey Donaldson as I am executor of his estate which affected by this.
As my MP is member of the NI Affairs Committee which is currently holding an enquiry into structure of banking in NI I thought it only right & proper to copy in all 13 other members of that Committee!
Member Since November 2013 - Comments: 85
5:47 PM, 22nd January 2014, About 12 years ago
I’m going to ask a question that may or may not be relevant, and if it is could be a total game changer…so prick up your ears!
It’s regarding any lawyer who may have acted when you entered into these mortgages. Did the lawyer act for you and the bank jointly, just for you or just for the bank? Or did you not get any lawyer involved in any way at all, even if it were to witness signatures? What normally happened? What was the course of events leading up to you taking on the BOFI mortgage?
Member Since September 2013 - Comments: 232
6:03 PM, 22nd January 2014, About 12 years ago
This is the link to look at for our EDM. At the moment it is up to 974.
http://www.publications.parliament.uk/pa/cm/cmedm/140121e01.htm
Member Since January 2011 - Comments: 12193 - Articles: 1395
6:05 PM, 22nd January 2014, About 12 years ago
Reply to the comment left by “Dee ” at “22/01/2014 – 18:03“:
EDM’s are re-printed at 8am every morning. Our’s will appear online tomorrow as it was only submitted and given a number today. Thanks for the link, I’m sure plenty of us will be following this to see whether our MP’s are one of the first 6 to add their support 🙂
.
Member Since September 2013 - Comments: 232
6:06 PM, 22nd January 2014, About 12 years ago
Understand our EDM 976 will be on tomorrow’s list.
Member Since July 2013 - Comments: 15
6:25 PM, 22nd January 2014, About 12 years ago
Reply to the comment left by “Dee ” at “22/01/2014 – 18:06“:
emailed David Ward MP of Bradford North Lib Dems – he is very active on behalf of his constituents normally so fingers crossed