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 June 2013 - Comments: 119 - Articles: 2
5:54 PM, 1st May 2013, About 13 years ago
Congratulations to all on galvanising such momentum in this campaign…… I do hope that you have the right counsel as I cannot believe that there will not be other lenders watching the outcome here like hawks…… Sharpening their talons in case there is finding in favour of BoI
Member Since July 2013 - Comments: 264
6:01 PM, 1st May 2013, About 13 years ago
Irish nationals are affected after all 550 of them on BBC web
6:50 PM, 1st May 2013, About 13 years ago
I have a mortgage with BoI jointly with my Wife and Son which wsas arranged as a follow on arrangement about 6 years ago as a BoE Base rate tracker at 1% plus BBR.
Now BoI want to break the terms of the contract and treble the interest between now and October. It is a residential owner occupier not B-L I was a mortgage broker at the time so knew what i was buying! Theyu are clearly in breac h of contract ands i am instructing my bankl to cancel the DDM as BoI refuse to agree to limit the payments to terms of the contract. I am intending to change to a S/O at the bank, however a certain person named Leighton at BoI implied that if i did not pay the increased interest demanded they could apply a default order against us. What right of action do we have against them. Can i sue the credit agencies for libel or should I sue BoI.If this was dishonestly rgistered with Equifax/Experian,
A have made an officlal complaint to BoI and will take it to the FS Ombudsman if they do not agree to drop the claim for trebling the interest. We await thei reply. Next step will me to the Ombudsman, however can BoI claim default during the time when the there was an unresolved dispute?
I cannot see how their demands are legally enforceable as the agreement clearly stated that it tracked BBR + 1% for life of the mortgage.
7:34 PM, 1st May 2013, About 13 years ago
They are being Underhanded .
They are desperate to dump their mortgage book and this is an easy way for them to do it .
I am putting in a complaint to FOS also worth looking at how you got the mortgage i.e Broker etc as this may be another avenue to pursue.
7:34 PM, 1st May 2013, About 13 years ago
@Peter French
It’s looks like you and I are in the same situation. My product is 0.89% for the term of the product. (my story is here http://tracker-rate-hike.co.uk)
I suggest that you sign up to, at the top of this page.
Member Since December 2014 - Comments: 4
2:44 PM, 2nd May 2013, About 13 years ago
If their Legal people are as incompetent as their complaints department it should be a walk in the park
Member Since July 2013 - Comments: 264
11:24 AM, 3rd May 2013, About 13 years ago
Mark Alexander.
For a matter of interest are you able to tell us how many have signed up to the Class Action so far? It would be good to no how many are backing us.
Member Since June 2013 - Comments: 1121
12:33 PM, 3rd May 2013, About 13 years ago
A quick indication is that 200 have signed up to the petition. I know it doesn’t mean they have all signed up but its a start.
Member Since January 2011 - Comments: 12193 - Articles: 1395
12:54 PM, 3rd May 2013, About 13 years ago
When I spoke to Justin a few days ago 70 had paid and sent supporting documentation and 300 had submitted the expression of interest form
Member Since July 2013 - Comments: 264
1:15 PM, 3rd May 2013, About 13 years ago
Im sure when others have run out of options then they will sign up? Im glad I did after recieving Justins Email this morning on the way forword. Happy days