Bank of Ireland increase differential on tracker rates

by Readers Question

10:32 AM, 28th February 2013
About 6 years ago

Bank of Ireland increase differential on tracker rates

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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.

The deadline for submission of instructions has now expired. However, it may still be possible to join the representative action subject to paying Court fees and an additional cost to cover associated administration. For details please email :


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:


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?


Mark Alexander

8:06 AM, 19th June 2016
About 3 years ago

Reply to the comment left by "Tricia Collick" at "19/06/2016 - 07:32":

Very true Tricia

Perhaps more to the point though is that there are many ways to skin a cat.

The West Brom fence sitters got very lucky when the building society applied the ruling on my case to I represented mortgagees.

When we take on BoI and Skipton the strategy way well be very different, possibly more akin to Gorilla Warfare tactics (but legal obviously) and these will only be shared with Property118 Action Group members.

Please see my linked blog below for some clues.


17:01 PM, 22nd June 2016
About 3 years ago

I have read Ian's advised article - can I say that they have not touched my Buy to let mortgages taken out in 2005 but they have spiked the main residential mortgage taken out in 2004 which is part base rate Tracker and part SVR - it was all on a fixed rate and then came out at a fixed rate then i Fixed for a further 4 years 70% but left 30% on the original terms . its a real mess understanding it all but i do recall speaking to BOI representative and he never ever mentioned a differential which was lurking in the Mortgage T& C ,or did the fact finding questionnaire
I have joined your 600 quid fund but paying monthly as have had 400 a month hike in my mortgage and earnings have gone down.
My question to Mark is are you just pursuing B&West Buy to let mortgages that converted to BOI that received a hike in interest or will you be covering the BOI residential mortgages as well which were taken out under Bank of Ireland residential mortgage ltd - a company - which then changed to BOI

Mark Alexander

7:06 AM, 28th June 2016
About 3 years ago

Please see the latest update article linked below ..

Darrell G

11:44 AM, 2nd July 2016
About 3 years ago

Hi Mark,
I've been out of the loop for a few months, but was really chuffed to hear about the West Brom Case, well done. Maybe the BoI cases are not dead in the water now?
Q, I originally put up £500 for the BoI Barristers opinion. Is this me in the current BoI action group or are you seeking an additional £600 for that? With 3 affected properties, its costing me quite a bit extra each month on the mortgages!

M Jones

16:16 PM, 5th July 2016
About 3 years ago

As an active member of the 'West Brom 300' I have had no hesitate in pledging £600 in order to become a Founder Member. I am looking forward to an even more momentous win over the Bank of Ireland.

Mark Alexander

21:36 PM, 5th July 2016
About 3 years ago

Reply to the comment left by "Darrell G" at "02/07/2016 - 11:44":

Hi Darrel

As you may recall, the solicitors who were originally looking into the case dropped it through lack of support.

Cotswold Barristers attempted another fund raise but that also failed to reach the target so money paid into the BARCO escrow account was refunded.

You may also recall that I said all along, if we won case against West Brom this would open up new opportunities for alternative strategies. That time has now come but funding is required. Other than the £50k ish already raised by the Property118 Action Group the cupboard is bare.

The new strategies will be particular to individuals who were affected and have signed up to lifetime membership of Property118 Action Group. The short answer therefore is that you will have to pay the £600 if you wish to be included.

If the case progresses to become a full on Court battle again then you will not be asked to part with further money, providing you have paid the £600 for lifetime membership.

All lifetime members will be contacted towards the end of next month and the new individual compensation claim strategy will be explained to them in detail at that point.

Mark Alexander

14:42 PM, 24th July 2016
About 3 years ago

Here's one for all Facebook users ...

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