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.
___________________________________________
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
2:31 PM, 2nd June 2015, About 11 years ago
Dear all,
There is movement afoot with one very brave borrower. We shall be writing to all those on the secure forum with a strategy by this time next week. It is most certainly not dead in the water. Please bear with us and keep faith.
Mark Smith
Member Since May 2015 - Comments: 7
2:59 PM, 2nd June 2015, About 11 years ago
Ok will do ,thanks for the response,look forward to hearing from you.many thanks to you and your team in the above matter.
Member Since April 2014 - Comments: 17
4:14 PM, 2nd June 2015, About 11 years ago
What does one need to do to get onto the secure forum?
Member Since May 2015 - Comments: 7
8:03 PM, 17th June 2015, About 11 years ago
Hi mark just received a copy of the financial ombudsmans reply to me compliant ref boi rate increase,which was sent to the law department on 11/11/2014,As I thought they found in favour of boi.the letter says consumers have the right to ask the ombudsman to review there case,I had until 25 November 2014,as I didn’t get a copy of this letter till now is there any point in asking for a review at this point or I’m I out of time.?hope things as still going forward,I’m still in solid support of any action you guys suggest.
Member Since January 2011 - Comments: 12193 - Articles: 1395
11:49 AM, 18th June 2015, About 11 years ago
Reply to the comment left by “Richard Gregg” at “17/06/2015 – 20:03“:
Hi Richard
Work is still going on behind the scenes but it is still to early to formulate a new campaign offering to attract funding. The wheels of Justice are definitely grinding slowly on this but rest assured they are still moving.
.
Member Since November 2013 - Comments: 85
7:39 AM, 13th July 2015, About 11 years ago
Hi, is anyone going to the FCA public consultation meeting next week in London? I am going and will be raising with them the B of I situation. Would anyone like me to raise their specific issues with the FCA? Would you like to meet up with me and find how I’m working with my client (who by the way is still not paying the increased rates) and what my conclusions and views are?
FCA Annual Public Meeting; Wednesday 22nd July 2015; The QE11 Centre, Broad Sanctuary, Westminster, London, SW1P 3EE; Registration 9.30 a.m.; Event Begins 10.00 a.m; Scheduled Close: 12.00 Noon. To register go here – http://fca.cvent.com/events/fca-annual-public-meeting-2015/event-summary-0617b410eb374bc29abcc6d26c595762.aspx
The FCA is holding its Annual Public Meeting on Wednesday 22nd July 2015 at The QE11 Centre in Westminster. There is no charge to attend this event.
Member Since September 2013 - Comments: 232
8:08 AM, 13th July 2015, About 11 years ago
I would have loved to go to this meeting, it should be most informative and interesting and to meet up with you Paul. Unfortunately, I am on holiday in France and can’t make it. Good luck though.
Member Since November 2013 - Comments: 85
8:14 AM, 13th July 2015, About 11 years ago
Reply to the comment left by “LS ” at “13/07/2015 – 08:08“:
I wish I were with you! Far more enjoyable!
Member Since September 2013 - Comments: 232
11:34 AM, 13th July 2015, About 11 years ago
I think it would be worth flying back for. But we have now paid off this mortgage so I think it would be a bit academic.
Member Since January 2015 - Comments: 38
4:00 PM, 13th July 2015, About 11 years ago
Reply to the comment left by “Paul Brindley” at “13/07/2015 – 07:39“:
Very sadly, I can’t make the meeting, as I have a long planned school holiday trip to visit my children’s grandparents.
If you are willing to raise my specific issues with the FCA, then I’ll take you up on the offer.