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 January 2011 - Comments: 12193 - Articles: 1395
9:12 PM, 12th March 2015, About 11 years ago
Reply to the comment left by “Tricia Collick” at “12/03/2015 – 20:07“:
Hi Tricia
It has taken FOS two years, I’m sure your version of a while will be quicker! 🙂
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Member Since January 2011 - Comments: 12193 - Articles: 1395
9:15 PM, 12th March 2015, About 11 years ago
Reply to the comment left by “Black Panther” at “12/03/2015 – 20:37“:
The committee you are referring to is the “Treasury Select Committee”. Look forward to another generic response which is even worse than the one being sent by the FOS!
Please send all papers to Mark Smith, as per my instructions to Tricia (see a few posts above).
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Member Since January 2014 - Comments: 26 - Articles: 2
9:56 PM, 12th March 2015, About 11 years ago
Times are hard, but this is so important that I’d be happy to chip in.
We must fight this injustice.
Member Since October 2013 - Comments: 59
10:02 PM, 12th March 2015, About 11 years ago
Hi Folks
Being one of the investers in the west brom action I support your action against the BOI but be prepared (as we have ) to put hands in pockets. The reason I say this is because there are a few people in our crusade against the West Brom who have no affiliation to the west Brom but believe it is unfair and because they have seen our desire for justice being matched by us reaching for our cheque books have joined in with their cheque books. helping us no end (not just financially)
So be prepared and others WILL help
Member Since January 2015 - Comments: 38
11:36 PM, 12th March 2015, About 11 years ago
That’s correct, the Treasury Select Committee.
I’ll send copies to Mark at Cotswolds, but will take a while, as I have my daughter’s birthday party this weekend and the In-laws staying, as well as recovering from medical procedures last week.
For speed, I’ll send the most significant correspondence (with the FOS) and if Mark @ Cotswolds reviews it and wants more detail/info., that can be arranged.
Presumably you’re saying that that there’s some sort of procedural inconsistency present, with the FOS only taking 10 days to complete a second review of my case?
BTW, Tricia, I’d be interested to see the web advert. you referred to, advertising the ‘for life’ tracker. Can you send a link?
Member Since October 2013 - Comments: 108
7:49 AM, 13th March 2015, About 11 years ago
Reply to the comment left by “Black Panther” at “12/03/2015 – 23:36“:
will post it later (have to go out) I only had a photocopy but sent a scan to FOS with my package….
Member Since June 2013 - Comments: 1121
9:31 AM, 13th March 2015, About 11 years ago
Just had my “bugger off Mr BTL investor we’re siding with BOI letter”
Disgusting.
Member Since June 2013 - Comments: 1121
10:34 AM, 13th March 2015, About 11 years ago
And I would put my hand in my pocket to have a go…..
Member Since November 2013 - Comments: 85
1:19 PM, 13th March 2015, About 11 years ago
Reply to the comment left by “Mark Alexander” at “12/03/2015 – 17:58“:
Mark, of course an alternative would be for the entire 15,000 borrowers to stop paying their mortgages, out all that money in to court, arguing the bank’s increase was illegal, inviting the bank to take action one by one to prove its entitlement to the increase, relying on the evidence I found.
Member Since January 2011 - Comments: 12193 - Articles: 1395
1:26 PM, 13th March 2015, About 11 years ago
Reply to the comment left by “Paul Brindley” at “13/03/2015 – 13:19“:
I can see where you are coming from Paul but I doubt that many will want to take that risk unless they are in the same position as your client on the verge of bankruptcy, in which case they have nothing to lose.
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