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 November 2013 - Comments: 252 - Articles: 10
11:16 AM, 14th April 2015, About 11 years ago
Joking apart, that is the purpose of the escrow account. All funds are held by the Bar Council, my professional body, until the agreed stages for payments out are achieved. Barristers never handle clients’ money.
Member Since October 2013 - Comments: 108
11:50 AM, 14th April 2015, About 11 years ago
Reply to the comment left by “Mark Smith (Barrister-At-Law)” at “14/04/2015 – 11:16“:
Sorry Mark, I never doubted either of you, it was just a little encouragement for others !
Member Since November 2013 - Comments: 252 - Articles: 10
12:19 PM, 14th April 2015, About 11 years ago
Never thought you did, its just that so many people that we look after have had their trusting nature taken out of them by how they have been treated by the financial sector and others ! Its always worth restating how much they are protected with us.
Member Since September 2013 - Comments: 20
8:24 PM, 14th April 2015, About 11 years ago
Hi I had paid in to the original plan (which was immediately paid back when the action was halted) so I am more than happy to contribute £1,000 now as it only feels like an extra £500 ! Forms are printed and will be in the post tomorrow. Incidentally, I only have two BTL but the hike since May 2013 had cost me almost £12k extra. Thanks to all involved in continuing with this.
Comments: 15
8:35 PM, 14th April 2015, About 11 years ago
Excellent news !
Is it £1000 per ‘early adopter’ or per affected mortgage ?
Member Since March 2015 - Comments: 3
8:40 PM, 14th April 2015, About 11 years ago
I would consider making a contribution of £300 to £400 as i feel 1k is a lot to put down as my morgage is 40k which would be a lot to loose for a small gain and also think with a tory goverment that we wont win as they are funded by the banksters.I would like to give more but with 3 kids and not a high salary it would be hard to come up with a grand
Member Since November 2013 - Comments: 252 - Articles: 10
8:50 PM, 14th April 2015, About 11 years ago
Reply to the comment left by “Stuart Dixon” at “14/04/2015 – 20:35“:
Per adopter not per mortgage
Member Since March 2015 - Comments: 3
9:06 PM, 14th April 2015, About 11 years ago
George Magan, banker: £485,000
Lord Magan was a deputy governor of the troubled Bank of Ireland and is a former Conservative Treasurer. The corporate financier made about £20m from his first business, Hambro Magan, and worked on high-profile deals such as Ford’s purchase of Jaguar.
Just read this on the net and they are the 8th highest funders to the tories .£485k a year lol
Member Since January 2015 - Comments: 38
1:25 PM, 15th April 2015, About 11 years ago
Reply to the comment left by “Mark Alexander” at “14/04/2015 – 09:46“:
Should someone think about getting the Press / Financial Press involved (especially those parts of the press that have been following the BoI ‘story’ for the last 2+ years and highlighting the next stage of our action?
Aside from the negative publicity for the BoI, It would also alert other people in a similar situation, who are not logged onto Property 118, to join in the action, given that we have a deadline of 15th May to recruit 50 Early Adopters.
Member Since January 2011 - Comments: 12193 - Articles: 1395
2:41 PM, 15th April 2015, About 11 years ago
Reply to the comment left by “Black Panther” at “15/04/2015 – 13:25“:
Leave it to me 🙂
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