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 January 2011 - Comments: 12193 - Articles: 1395
6:43 PM, 7th October 2013, About 13 years ago
Reply to the comment left by “Terry Donohue” at “07/10/2013 – 18:25“:
Much appreciated, thanks Terry 🙂
Member Since February 2011 - Comments: 3453 - Articles: 286
3:26 PM, 9th October 2013, About 13 years ago
Please can everyone read Mark’s latest article https://www.property118.com/contra-proferentem-mortgage-conditions/44061/
Member Since January 2011 - Comments: 12193 - Articles: 1395
12:56 PM, 10th October 2013, About 13 years ago
Hello All
I need some help please.
I have a list of all Landlords Association in the UK.
They all need to be contacted by telephone with a request for their help. What we want them to do is email their entire membership telling them about our campaigns.
Below is a list of all Landlords association, each is linked to their website where you can obtain their contact details.
Below that list I have created a template email for them to send to all of their members.
I have run out of time as I’m off to the French Riviera now to celebrate my first wedding anniversary. I also desperately need to take a break!
I need a few volunteers to tackle this project in my absence. There may be some overlap but this could be a good thing as the Landlords Associations will see the importance of the campaigns if they receive multiple telephone calls.
Any takers?
Suggested email template for Landlords Associations to send to their members.
Dear Member
Was it your understanding that interest rates on lifetime tracker mortgages or reversion tracker rates can only vary when the base rates moves?
There are now plenty of angry borrowers out there, 6,700 in clients of the West Bromwich Building Society and a further 12,200 clients of Bank of Ireland are already affected as these lenders have decided to increase their profit margin by increasing the interest rates regardless of the fact that the Bank of England base rate has not changed. They are relying on ambiguous small print in their contracts which are also contra proferentem in that promotional materials and contractual conditions are conflicting.
Which lenders will be next to follow suit?
Do you agree this unethical practice must be stopped before other lenders cotton on to this?
We are writing to you to let you know that a Class Action group has formed via the Property118 online forum to fight back.
For more information please visit http://property118.com
.
Member Since July 2013 - Comments: 264
9:25 PM, 14th October 2013, About 12 years ago
Adam Shaw from Panorama may be worth Emailing
Member Since January 2011 - Comments: 12193 - Articles: 1395
12:17 PM, 15th October 2013, About 12 years ago
Please see my latest update article >>> https://www.property118.com/tracker-rate-class-actions-update/44117/
.
Member Since October 2013 - Comments: 108
1:53 PM, 15th October 2013, About 12 years ago
Update request will be sent to FOS at the weekend…
Member Since June 2013 - Comments: 1121
6:05 PM, 15th October 2013, About 12 years ago
Please dont hold your breath. Had a letter from FOS saying that they were trying to “decide a way forward”
Member Since June 2013 - Comments: 19 - Articles: 1
6:06 PM, 15th October 2013, About 12 years ago
The Scottish Association of Landlords has emailed the call to action to our members today. We have asked members affected to contact us directly too.
Member Since January 2011 - Comments: 12193 - Articles: 1395
6:16 PM, 15th October 2013, About 12 years ago
Reply to the comment left by “Scottish Association of Landlords” at “15/10/2013 – 18:06“:
That’s fantastic Judith, thank you for your support 🙂
.
Member Since September 2013 - Comments: 35
10:26 AM, 16th October 2013, About 12 years ago
Reply to the comment left by “Gary Nock” at “15/10/2013 – 18:05“:
I have also received my “update” from FOS with respect to my complaint about BoI increasing the differential on my residential tracker mortgage. I quote:
“As you may know, we have ben receiving a large number of complaints about Bank of Ireland (UK) Plc interest rates. We always look into the individual circumstances of each complaint. But it is also important that we investigate complaints in a consistent way – and we are currently considering the approach we should take.
Once we have more information about how we are going ahead, we will let yu know and give you the name of the person who will be looking into your complaint. Thank you for bearing with us and we will be in touch again as soon as possible.
Yours sincerely
Clare Jose, Team Manager”
In other words – how long is a piece of string?? and, don’t contact us, we’ll contact you.
I can’t tell you how angry I am at the FOS as well. They just take their own time with things. I initiated my complaint in March this year, and I find it unbelievable that, 7 months later, FOS are “considering the approach” they should take; that they don’t have the information about how they “are going ahead”, and, they cannot yet give me a named contact of who is dealing with my complaint……
Oh I am so cross at these organizations that are supposed to be helping consumers…