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: 20
10:15 AM, 31st January 2014, About 12 years ago
Hi, I was one of the first to join the BOI campaign, when will I get the email from Justin?
Member Since June 2013 - Comments: 1121
10:20 AM, 31st January 2014, About 12 years ago
Reply to the comment left by “Terry Donohue” at “31/01/2014 – 10:15“:
Terry so was I. I have had mine.
Member Since September 2013 - Comments: 232
10:40 AM, 31st January 2014, About 12 years ago
Reply to the comment left by “Terry Donohue” at “31/01/2014 – 10:15“:
Hi Terry, someone posted a similar comment the other day and Mark replied. If you can’t find the comment (it may have been on the WBBS forum) I think his advice was in your circumstances if you paid the fees etc you should give Justin’s office a ring. Hope that is helpful
Member Since June 2013 - Comments: 20
11:02 AM, 31st January 2014, About 12 years ago
Timing, I got my email within 10mins of my post. The contents of the email
Look encouraging. It is a David and Goliath fight but we need an army of David’s. Sign up, pay the money and let’s try to bring BOI to its knees.
Member Since January 2011 - Comments: 12196 - Articles: 1396
12:51 PM, 31st January 2014, About 12 years ago
Reply to the comment left by “LS ” at “31/01/2014 – 09:34“:
If you are a fully paid up member you should have received your email by now, if not please contact [email protected]
.
Member Since June 2013 - Comments: 1121
1:03 PM, 31st January 2014, About 12 years ago
Mark just need to query an ambiguity in the email. Is it better I email you with it rather than discuss in open forum?
Nothing to do with legalities. More about the contribution side.
Member Since January 2011 - Comments: 12196 - Articles: 1396
2:29 PM, 31st January 2014, About 12 years ago
Reply to the comment left by “Gary Nock” at “31/01/2014 – 13:03“:
Hi Gary
To be on the safe side, yes please 🙂
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Member Since January 2011 - Comments: 12196 - Articles: 1396
3:31 PM, 31st January 2014, About 12 years ago
IMPORTANT ANNOUNCEMENT
Please see the linked new article below …..
Please share via Social Networks
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Member Since August 2013 - Comments: 126
5:32 PM, 31st January 2014, About 12 years ago
Reply to the comment left by “LS ” at “31/01/2014 – 08:54“:
Ulster Bank is RBS’s subsidiary in NI and Eire. In the year ended December 2013 it will lose around £3 to £4 billion. In total it’s expected that the operation will lose some£15 billion in total. Ulster Bank is one of RBS’s toxic assets.
Member Since July 2013 - Comments: 264
6:28 PM, 31st January 2014, About 12 years ago
Reply to the comment left by “Mark Alexander” at “30/01/2014 – 19:06“:
CAPTION COMPETITION
1) BOI Directors rehearse there escape if they lose court case.
2) An Irish dyslexic farmer miss-read the small print in his mortgage terms & conditions
, he read Tracker Rate as Tractor Raid.