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.
___________________________________________
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 September 2013 - Comments: 232
12:25 PM, 26th February 2014, About 12 years ago
Reply to the comment left by “Theresa McAllister” at “26/02/2014 – 11:24“:
Good news, at the least the FOS is still there
Comments: 7
12:46 PM, 26th February 2014, About 12 years ago
Much of what the F.O.S is asking you does not seem relevant to me.They have said themselves that the mortgage should track the base rate, its as simple as that!
.I suppose you have to play the game by sending back the form,but be careful as they may find something in your answers that they can throw back at you.
Why is it so very difficult to trust anyone these days?
Member Since October 2013 - Comments: 108
1:08 PM, 26th February 2014, About 12 years ago
Reply to the comment left by “Theresa McAllister” at “26/02/2014 – 11:24“:
mmm…interesting ! Perhaps they are progressing with their (very slow) investigation….
Member Since February 2011 - Comments: 3453 - Articles: 286
2:24 PM, 26th February 2014, About 12 years ago
Mortgage Strategy article today regarding the campaign and meeting tomorrow.
Please see >>
http://www.mortgagestrategy.co.uk/2007194.article?cmpid=msdaily_149033
Member Since September 2013 - Comments: 232
9:47 AM, 27th February 2014, About 12 years ago
Good luck everyone, short message on the other forum
Member Since September 2013 - Comments: 232
8:54 AM, 28th February 2014, About 12 years ago
EDM now at 49
Member Since January 2011 - Comments: 12193 - Articles: 1396
12:33 PM, 28th February 2014, About 12 years ago
Reply to the comment left by “Colin Childs” at “28/02/2014 – 10:58“:
I warned you Colin, you are now permanently blacklisted and no longer able to post comments on this website. Your comments add no value and are often destructive or demoralising to this community as anybody can see by visiting your member profile.
PS – I think you will find that dolphins are far more popular than landlords! Has anybody ever paid £100 to swim with a landlord? LOL
.
Member Since January 2011 - Comments: 12193 - Articles: 1396
1:25 PM, 28th February 2014, About 12 years ago
Reply to the comment left by “Mark Alexander” at “28/02/2014 – 12:33“:
MEMBERS MEETING UPDATE
I have just posted an update with some very good news on the secure members forum, please take a look.
.
Member Since November 2013 - Comments: 85
3:37 PM, 28th February 2014, About 12 years ago
Mark, sorry, I can’t resist.
Wouldn’t we all live to see the board members of the Bank of Ireland swimming with sharks in the clear blue waters of the pacific…
Without a cage…
With necklaces of the finest quality beef they’ve bought using UK borrowers’ money obtained illegally…
One by one?
To be followed by their lawyers as afters?
And you know what? It’s funny how often your dreams work out, perhaps not exactly as you’d dreamed, but something like!
We’re coming to get you!
Member Since August 2013 - Comments: 14
3:58 PM, 28th February 2014, About 12 years ago
For those of you who’ve been sitting & waiting, be prepared to join in soon! This is looking very good; together we are very strong, on our own weak.