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 February 2014 - Comments: 43
2:40 PM, 3rd March 2014, About 12 years ago
as it stands all the over payments are lost anyway so we wont lose out, but would be in pocket for the future or we could fund our own costs i think i know which is going to be the preferred option, so i agree with the above.
Member Since July 2013 - Comments: 18
7:22 PM, 3rd March 2014, About 12 years ago
I thought you may like to see this:-
http://www.irishtimes.com/business/sectors/financial-services/bank-of-ireland-narrows-losses-to-569m-1.1710324
Richie Boucher forgets to mention he failed to honour and broke 1000’s of previously agreed mortgage terms to achieve this. He also forgot to mention his new definition of a ‘fixed rate tracker’ to a ‘standard variable’ rate mortgage. Next thing he will be telling us about the bonus he earned in not honouring the 1000’s of fixed rate tracker mortgages and the Government let him get away with it.
Member Since July 2013 - Comments: 264
9:06 AM, 4th March 2014, About 12 years ago
Could Human Nature be BoI blue on blue Weapon ?
What a powerful one to have it even comes with an individual financial suicide button, which only we can press,
So if you do not sign up & fight, then you’ve pressed the detonator without the BoI doing a thing.
Just shows how something so basic can be so powerful if used against you,
Banks could just follow suit without the need of any Legal advice !! LOL
Member Since October 2013 - Comments: 35
5:00 PM, 4th March 2014, About 12 years ago
http://www.irishtimes.com/business/sectors/financial-services/is-bank-of-ireland-making-too-much-profit-1.1712143
No comment necessary I think
Member Since October 2013 - Comments: 35
8:23 AM, 5th March 2014, About 12 years ago
http://www.irishtimes.com/business/sectors/financial-services/boi-makes-loss-of-235-million-on-home-loans-1.1712761
Member Since January 2011 - Comments: 12193 - Articles: 1396
12:19 PM, 7th March 2014, About 12 years ago
Our campaigns now have the support of more than 50 MP’s – see >>> http://www.parliament.uk/edm/2013-14/976
I am hoping to be able to persuade David Morris and Jason McCartney to hold a Press Conference to raise further awareness.
.
Member Since October 2013 - Comments: 35
8:49 AM, 8th March 2014, About 12 years ago
http://www.irishtimes.com/business/sectors/financial-services/high-court-ruling-throws-ulster-bank-debt-collection-into-doubt-1.1717089
A fascinating twist – particularly given the multiple trading names & subsidiaries BOI has or has used in the mortgage market ….
Member Since September 2013 - Comments: 35
11:13 PM, 16th March 2014, About 12 years ago
Anyone know how long solicitors are obliged to keep paperwork relating to mortgages that they have advised on?
Member Since January 2011 - Comments: 12193 - Articles: 1396
11:18 PM, 16th March 2014, About 12 years ago
Reply to the comment left by “Theresa McAllister” at “16/03/2014 – 23:13“:
Don’t quote me on this but I think it’s 6 years.
.
Member Since March 2014 - Comments: 1
9:06 PM, 17th March 2014, About 12 years ago
Hi there. I am very new to this, but have a tracker rate mortgage with BoI. Nearly doubled my payments.
Is there anything I should be doing or is it a case of wait and see?