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 February 2014 - Comments: 43
9:52 PM, 18th April 2013, About 13 years ago
cheers jackie emailed jemma@lawdep etc not heard back yet maybe busy. registered already i think? through mark. thanks anyway.
Member Since July 2013 - Comments: 264
4:10 PM, 19th April 2013, About 13 years ago
On martin lewis website
Thousands of Santander mortgage holders may be entitled to redress after the bank raised the cap on its SVR without telling customers of the change.
These affected are 2002 04 06
FCA said bank failed to give clear information
Member Since February 2014 - Comments: 43
11:31 AM, 20th April 2013, About 13 years ago
what’s going on with the class action , its gone quite as i was trying to get involved.cant get any replys to emails etc?
Member Since January 2011 - Comments: 12193 - Articles: 1395
11:46 AM, 20th April 2013, About 13 years ago
@Paul Anderton – I have copied your comment to Justin Selig.
Member Since February 2014 - Comments: 43
12:21 PM, 21st April 2013, About 13 years ago
right thanks Mark much appreciated, hope things are progressing well.
Member Since January 2011 - Comments: 12193 - Articles: 1395
12:27 PM, 21st April 2013, About 13 years ago
Indeed Paul, we are expecting the barristers opinion any day now
2:14 PM, 23rd April 2013, About 13 years ago
Any news on the letter to send to FOB?
In a weeks time BoI will be collecting their first additional £250 per month.
Member Since June 2013 - Comments: 99 - Articles: 2
3:00 PM, 23rd April 2013, About 13 years ago
Thanks for your patience everyone – we should hopefully be receiving counsel’s opinion tomorrow so I will be able to come back in more detail as to our proposed course of action. I am sorry it has taken so long for this to appear but our barrister was delayed on another case.
There are a number of people who have said to me that they did not receive the “Residential Mortgage Conditions”. I spoke to someone earlier today who said they still have their covering letter setting out what documents were sent to them by the bank and the letter does not mention that the Residential Mortgage Conditions were included. If anyone else is in a similar position, then please would you send me the letters as this could be another route to bring a complaint against the bank.
I have held back on proposed wording to the Financial Ombudsman Service until we have the counsel’s opinion as I want to ensure that everyone submits the correct complaint based on what counsel advises is the best route to take.
Comments: 10
3:04 PM, 23rd April 2013, About 13 years ago
Hi Justin,
I am 99% sure I didn’t receive the residential mortgage conditions originally, but in any case should they not have been BTL mortgage conditions? I am obviously not a lawyer or someone with a great deal of knowledge of the financial regulations, but to me, if its a BTL mortgage should they not have T&Cs that apply to these.
Member Since July 2013 - Comments: 264
3:40 PM, 23rd April 2013, About 13 years ago
Justin Selig
Letter from BW dated 25 july 2003
I have pleasure in enclosing the mortgage offer in respect of your purchase of the above property.
Please sign one copy and return it to us in the pre-paid envelopeand keep the other for your records.
Theres no mention of any other enclosed documentation
On the offer of loan it just says read all the documents we have sent you. but none are listed.