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MSE News: Bank of Ireland mortgage costs soar for thousands – but customers can fight
Former_MSE_Helen
Posts: 2,382 Forumite
"Thousands of mortgage holders with a Bank of Ireland base rate tracker will see repayments rocket today..."
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Bank of Ireland mortgage costs soar for thousands – but customers can fight back
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Bank of Ireland mortgage costs soar for thousands – but customers can fight back
Click reply below to discuss. If you haven’t already, join the forum to reply. If you aren’t sure how it all works, read our New to Forum? Intro Guide.
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Comments
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I wonder what the word "tracker" means, according to the Bank of Ireland?
I fail to see how a "tracker" in which the tracking differential can be changed at whim is any different to a non-tracker.
Surely describing such a product as a "tracker" is misleading?0 -
I suggest ALL residential mortgage customers complain to Bank of Ireland and, if necessary, FOS.
Buy to let borrowers have less rights. However, if the original loan was with Bristol & West, they probably do because it submitted to the jurisdiction of the old Building Societies Ombudsman.
Even if you lose at FOS, it will cost Bank of Ireland £550 a throw.0 -
Prominent consumer lawyer Mike Dailly, of Glasgow's Govan Law Centre, urged customers to fight back in a guest comment for MoneySavingExpert.com last month (see the 'Fight Bank of Ireland's unfair mortgage hike' MSE News story).
He said the bank "has failed to give its customers evidence of any exceptional circumstances" which would justify the rise.
Appears the answers in the quality of the mortgage book. From the same article.When the announcement was first made in February, forum user smiffy said: "My rate on my residential product is jumping from 0.89% to 4.49%. That's taking the interest payment from £243 to £780.
"I can fund a £100 per month increase — I need to find over £500."
Most likely on interest only as well. There's a time bomb a ticking.
Base rate is going to rise one day.0 -
magpiecottage wrote: »Even if you lose at FOS, it will cost Bank of Ireland £550 a throw.
Only one person pays the cost. The customer. So a very short sighted view.0 -
magpiecottage wrote: »
Even if you lose at FOS, it will cost Bank of Ireland £550 a throw.
That's fantastic. Maybe everyone should do that and then come back here to complain their mortgages are going up again as BOI have to raise funds.0 -
I wonder how many BOI customers are sitting there with false hope that this will blow over or have they started to remortgage else where?
It seems BOI have the legal right, what people might not like is they may also have to do this to survive as I think secretly they are on the brink.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
Save our Savers
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Nasty stuff but as has been said it sounds like a survival tactic - win win for the bank as either you find the cash somehow (for the time being anyway) or you take your mortgage elsewhere and it's one less for them to worry about you not repaying down the line when the base rate finally does increase.0
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Thrugelmir wrote: »Appears the answers in the quality of the mortgage book. From the same article.
Yes but that the decision whether or not to lend was a matter of commercial (mis)judgement by the lender.Most likely on interest only as well. There's a time bomb a ticking.
I have seen no evidence to support that assertion.
Undoubtedly but that does not give the lender the right to increase rates before that day arrives.Base rate is going to rise one day.Thrugelmir wrote: »Only one person pays the cost. The customer. So a very short sighted view.
Incorrect - complaints to the Financial Ombudsman Service are free to consumers unless frivolous, vexatious or fraudulent.0 -
magpiecottage wrote: »Incorrect - complaints to the Financial Ombudsman Service are free to consumers unless frivolous, vexatious or fraudulent.
Who you think bears the cost ? If its free to consumers.0 -
Thrugelmir wrote: »Who you think bears the cost ? If its free to consumers.
The business - ask the regulators.
Anyway, FOS has a habit of overruling terms buried in small print that it considers unfair to the consumer. So I would say most residential borrowers have a fair chance of winning - even if they do decide to move away as well as, or even before, complaining.0
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