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 September 2013 - Comments: 232
4:31 PM, 11th April 2014, About 12 years ago
Reply to the comment left by “Justin Selig” at “11/04/2014 – 14:41“:
Hi Justin, this seems to be a bit of a chicken and egg situation. I think more people would be willing to send the £500 if the insurance company etc had been found and in principle the case could proceed. I believe this £500 is to be returned to us at some stage but I am not very clear about this. If it is to be returned why is it even needed.
If it is that you need X amount of people to convince an insurance co. to take the case on then that is a different matter. Maybe it should be marketed like that.
I think that if there is a good case an insurance company should be persuaded to proceed even with few people because if they won they could then be flooded with customers in the future. But I guess once they won other like companies could cash in.
In which case could we not all sign up with out paying any money, I think then you may have a chance of getting 13,000 people signing up.
Hope I am not talking rubbish. Advice please.
Member Since July 2013 - Comments: 264
3:41 PM, 22nd April 2014, About 12 years ago
Justin
I would be prepared to commit but at this stage the questions that Mark A has asked on the 11th, which I for one I will need an answer to so I can decide.
Member Since July 2013 - Comments: 89
9:54 AM, 26th April 2014, About 12 years ago
Hi Mark & Justin,
Its all very quiet. Are we all still moving forward & is it just that theres nothing more to report up to now?
How many are signed up to the BoI action up to now?
Comments: 15
12:47 PM, 27th April 2014, About 12 years ago
Please can we have an update.
Have BoI victims had a decision from the FOS yet ? They appear to have made up their mind about the WB hike.
I’d be pleased to contribute another £500 if we were still moving forward.
Member Since April 2014 - Comments: 17
10:15 PM, 27th April 2014, About 12 years ago
Does anyone have any copies of Bristol and West Easyflex mortgage marketing leaflets or brochures from 2001? I already have the website materials.
Thanks in advance, Paul
Member Since September 2013 - Comments: 232
9:58 AM, 28th April 2014, About 12 years ago
Page 138 where Paul’s new comment should appear keeps coming up blank, is anyone else having the same problem.. Thank you L.
Member Since October 2013 - Comments: 35
7:13 AM, 1st May 2014, About 12 years ago
http://www.irishtimes.com/business/personal-finance/boi-criticised-for-very-blunt-approach-to-distressed-borrowers-1.1779198
BOI in trouble with Dublin authorities!
Member Since September 2013 - Comments: 35
7:44 PM, 1st May 2014, About 12 years ago
Good enough for them… I hope they’re in a lot more trouble with UK authorities too…
Member Since June 2013 - Comments: 1121
7:57 PM, 1st May 2014, About 12 years ago
Just had a letter from Ombudsman saying they have reached some decisions on some cases but not all and that they should start work on my case soon. Anybody else?
Member Since October 2013 - Comments: 35
7:07 AM, 2nd May 2014, About 12 years ago
I have lodged a complaint on the basis of misspelling the tracker mortgage as not all key product risks were known/disclosed at the time – particularly as the same solicitor acted on both sides of the transaction. I have suggested to FOS that as BOI will not now reveal relevant info on the basis of commercial sensitivity then it is reasonable to assume that the same position existed back when the mortgage was taken out & that contract might therefore be considered ‘unfair’
Playing their own ball straight back at them….