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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7:34 PM, 13th March 2013, About 13 years ago
@David Fox
The letter I received regarding the intention to increase the differential was dated 25 February.
12:22 PM, 14th March 2013, About 13 years ago
Not sure if this was posted earlier this week –
http://www.bbc.co.uk/news/business-21751992
Member Since June 2013 - Comments: 99 - Articles: 2
12:32 PM, 14th March 2013, About 13 years ago
CLASS ACTION UPDATE: Our barrister would like to see copies of any promotional material anyone received from the Bank – either Bank of Ireland or Bristol and West at the time their mortgage was taken out. If anyone has copies of the promotional material, please would you email it to me at [email protected] or post it to The Law Department, 7a Wellington Road, London NW10 5LJ. Many thanks, Justin
3:26 PM, 14th March 2013, About 13 years ago
It is strange, I have not received an increase rate letter about my BTL mortgage. I did recieve an offer to move it about 2 months ago that would have cost me more. I have not had and offers to buy me out of my mortgage.
5:08 PM, 14th March 2013, About 13 years ago
@Tony Seaton
Which year did you take out the Mortgage?
5:22 PM, 14th March 2013, About 13 years ago
It was in 2007
Member Since August 2016 - Comments: 8
5:41 PM, 14th March 2013, About 13 years ago
I have just got round to complaining on:-
[email protected]
Do make sure they confirm receipt of your email rather than assume they just have it ,as previously I am sure they gave their email address ending .com instead of .co.uk of course they never got that email.
I also complained to the financial ombudsmen on 0800 023 4567 it is worth doing this for those who have not done so and are instead waiting the eight weeks. They are happy to take your complaint now and will then have all your details set up if you do wish to take the case further in the future.They will also give you a reference number and send a letter if wish on your behalf to the Bank Of Ireland.
The more that complain now to the financial ombudsmen rather than wait (and perhaps not get round to it) will surely add to their figures and compel them to take action sooner rather than later.
In fact I was the second person this one representative had spoken to in 10 minutes regarding the Bank of Ireland.
6:55 PM, 14th March 2013, About 13 years ago
Hi
I am affected by the btl tracker mortgage rate rise. Reading the forum there seems to be alot of us.
Can someone inform me of the best course of action? As i dont believe they can do this. Btw i was also offered incentive to leave bank of ireland
Mike
Member Since January 2011 - Comments: 12196 - Articles: 1396
7:16 PM, 14th March 2013, About 13 years ago
@Tony Seaton – it’s only some accounts created prior to 31st October 2004 which are affected. You are in the clear my friend – for now at least!
Member Since January 2011 - Comments: 12196 - Articles: 1396
7:24 PM, 14th March 2013, About 13 years ago
Hi Mike
Yes, if you have time, please read all of the comments on this thread.
If not, please see the post I have linked to below and complete the “Class Action Expression of Interest Form” at the foot of the article, i.e. before you get to the comments.
See >>> https://www.property118.com/index.php/class-action-litigation-boi-bristol-and-west-mortgages/37248/