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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Comments: 10
4:35 PM, 28th February 2014, About 12 years ago
Would someone be kind enough to let me know the details for the private forum as I have paid the initial amount requested to join the class action.
Member Since January 2011 - Comments: 12193 - Articles: 1396
4:38 PM, 28th February 2014, About 12 years ago
Reply to the comment left by “Colin Thody” at “28/02/2014 – 16:35“:
Hi Colin
The only people authorised to give you an access link are The Law Department because you are their client, they have ID’d you and they have your money.
Please email [email protected]
.
Comments: 10
4:38 PM, 28th February 2014, About 12 years ago
Thank you Mark, much appreciated
Member Since July 2013 - Comments: 264
8:24 PM, 28th February 2014, About 12 years ago
This is like backing the favourite in a one horse race.
Member Since June 2013 - Comments: 1121
8:38 PM, 28th February 2014, About 12 years ago
And you know what Ian ? Some BOI victims either still do not know about it or will still balk at the £500.
Member Since July 2013 - Comments: 264
9:04 PM, 28th February 2014, About 12 years ago
Reply to the comment left by “Gary Nock” at “28/02/2014 – 20:38“:
I’m sure there will be a few, but once they no what happens to the £500 if we lose then it should be a no brainer surly ?
This is well suited for the residential Mortgage holder, as Landlords can always sell up.
Member Since July 2013 - Comments: 264
9:07 AM, 1st March 2014, About 12 years ago
Reply to the comment left by “Paul Brindley” at “28/02/2014 – 15:37“:
Paul
You shouldn’t feed Lawyers & Bankers to Sharks, as you will end up with a Legal Loan Shark.
Member Since July 2013 - Comments: 89
9:18 AM, 1st March 2014, About 12 years ago
Mark,
Sounds like some good news for once! Well done everyone for getting this far.
Keep up the good work.
I’m in.
Member Since July 2013 - Comments: 264
5:00 PM, 2nd March 2014, About 12 years ago
Reply to the comment left by “Paul Anderton” at “01/03/2014 – 17:05“:
Membership sign ups speaks volumes
Member Since June 2013 - Comments: 1121
5:15 PM, 2nd March 2014, About 12 years ago
Or lack of it. Those who have signed up are convinced. Those who have not are not privy to the secure forum information which we are. Bit like insider dealing really. Unless they sign up they will not know what we know and will lose out for the sake of £500.