Bank of Ireland tracker mortgage % increase

hightable · 28 February 2013 at 9:11AM

Thanks for the ideas. The small claims one really appeals given that the interest per month will be of that order. Does anyone have a link to a good place to get the relevant information. Also, all my mortgages are from 1998 and are buy to let. I have only heard about one does the post this morning have more bad news?

Dominic22 · 28 February 2013 at 9:34AM

I got interviewed by the producers of five live yesterday to run a story.
It will get our house repossessed. We are in arrears with BOI and overpaying to catch-up (£400 total payment a month). My wife works for the NHS I am self employed that had a business go bust on us owning me lots of money.

I have no choice other than to stay with them. I am un-mortgageable with any other lender, my payment goes for £300 ish to £770. I am already on interest only so there is no movement there. They say after conversation that they can delay it for 3 months but the missed amount goes as arrears so then I will be unable to move for even longer.

They have not been great from the start. When we missed a payment them sent a letter for us to see a money advisor, there was a £75 fee for the letter and a further £75 irrespective of if we talked to him as he would knock the door and that was enough to trigger the further £75. We are catching up but there is no way we can pay double our payment now from October.

I am unsure what we will do, I have kids 11 & 8. I feel very close to the edge.

smiffy · 28 February 2013 at 9:46AM

Dylboy wrote: »

I'm all for a coordinated approach and am open to suggestions. Surely they can't get away with this?

Me too! May rate is jumping up from .89% over BR

magpiecottage · 28 February 2013 at 11:07AM

opinions4u wrote: »

- buy to let ... ombudsman, regulator and court may view landlords as commercially savvy people who should be expected to read and understand the T&Cs.

A B2L is not regulated and therefore FOS only has jurisdiction if the lender volunteers to allow it. The point is that, from the landlords point of view it is a business.

- pre-regulation in 2004 ... there may have to be an acceptance that the T&Cs issued at the time cover it off.

This is slightly different because the old Mortgage Code will bring the case under FOS jurisdiction.

- post-regulation ... if it's in the Key Facts document, I think you'll lose at the FOS or in court. If it isn't, I think you'll win at the FOS, although courts are more likely to consider the legal contract to be the important document. So you may lose in court.

I would agree with that. However, the contract will be a standard format. That brings it within the remit of the Unfair Terms in Consumer Contracts Regulations 1999.

There may be an argument that a contract which, in effect, says "we can force you to pay more if something happens which makes it unaffordable to us" creates an imbalance in favour of the lender if there is not a corresponding provision to allow you to force it to charge less if something happens to make the loan unaffordable for you.

This would only be valid for a mortgage to purchase your own home, though as a landlord is not a "Consumer".

That's why I suggest the FOS before going legal.

I would agree with that. Even if your lender tells you that you cannot take it to FOS, it will be FOS, not the lender, that ultimately decides this.

hightable wrote: »

Thanks for the ideas. The small claims one really appeals given that the interest per month will be of that order. Does anyone have a link to a good place to get the relevant information. Also, all my mortgages are from 1998 and are buy to let.

I am fairly sure that Bristol & West was a member of the Building Societies' Ombudsman scheme which I think WOULD mean FOS has jurisdiction in your case.

If it agrees it has jurisdiction, FOS will not charge you but will charge the lender.

brokencamelback · 28 February 2013 at 11:39AM

Hello,
I just joined the forum today as we received a letter yesterday increasing our rate from 2.25% to 4.99%. They cite Special Condition 6(m) which seems to say they can do this if they need the money.
Things are bad enough as they are, and we are really despairing.
We would appreciate any info on a co-ordinated approach. Jeremy Vine perhaps?

olivepalm · 28 February 2013 at 11:52AM

I'm still shocked by the recent developments. Are we all going to individually complain or is it gonna be some sort of uprising against very arrogant disregard for the ordinary suckers circumstances. I took my mortgage with idea that will track Bank of E. rate. It's risk that everybody who take this sort of mortgage takes. But I'm not prepared to feel up the money gap produced by bad banking management.

markkw · 28 February 2013 at 1:45PM

PLEASE FEEL FREE TO COPY ANY OR ALL OF THIS EMAIL THAT I SENT TO MY MP

I am concerned that the Bank of Ireland, with whom I have had 2 Buy-To-Let Tracker Mortgages since 2003, are unfairly raising the, so called, differential rate by 2.74% per month.

Please see attached the two page letter sent by the bank.

I am not the only person affected, so you might like to follow this Money Saving Expert forum for further insight:
forums.moneysavingexpert.com/showthread.php?t=4470099

Some people who have posted there sound particularly depressed. There may be invisible others who are in despair.

The Bank of Ireland have suggested that we can talk to the Citizens Advice Bureau and the Money Advice Service. I think they should also have mentioned The Samaritans.

__________

Between now and when we meet on the 12th April, I would ask that you bring this situation to the attention of the relevant Minister.

For my part, I am involving the solicitor that did my conveyancing.

I have the Offer Of Loan document. This does refer to the Residential Mortgage Conditions paragraph 6(m) on which the bank is relying to justify the variance.
However, I do not have Residential Mortgage Conditions document and wonder whether the solicitor has one either.

Whilst I wait for the solicitor to access their archive I have asked the Bank of Ireland for a copy of the Residential Mortgage Conditions. They say it should reach me, by post, in 5 working days.
If this document is so important, it should have been available, since at least 2003, for download from the bank's website!

__________

Best Regards

marathonic · 28 February 2013 at 2:06PM

markkw wrote: »

If this document is so important, it should have been available, since at least 2003, for download from the bank's website!

Clutching straws here. Why should it have been available for downloading? What happened before the days of the internet and since when did this change? Should a contract between a landlord and tenant be available for download and, if not, why are the rules different here?

disposalist · 28 February 2013 at 2:23PM

I'm in the same boat here and am now in the nightmare that is re-mortgage arranging - to be honest (since I'm not a professional landlord and an looking to sell the property) it's not going to be worth it for me given all the fees involved.

I guess I'll just have to bend over and take it, though I will be using the Ombudsman to seek recompense of any costs and some compensation for the stress and ongoing rate differential if I do remortgage.

I can only imagine that others are going to be much more badly effected - people that have mortgages on several properties based on the 'promise' of about 2% above BoE are probably getting their lives wrecked just about now.

An advisor at BoI just mentioned to me that "the rates were up there a few years back - it's unwise to bank on rates staying low"... right, but if you'd wisely hedged against the interest rate rising with some other products then banking on BoI sticking to the arranged differential rate was essential part of a very wise plan that BoI just screwed by not holding up their part of the bargain.

It's obscene how, when the public invest we are battered with the "investments can go down as well as up" 'advice' and expected to just take losses that arise, but when a bank makes an investment (selling mortgages), if it doesn't work out well, they just screw their losses out of their customers. It really shouldn't be legal, should it?

A lack of taking on financial responsibility is what lead banks like BoI to cause their own problems in the first place and now when they are not making money and being forced to take (costly) measures to protect themselves WE have to pay for it?!

Anyway - I'm ranting... sorry.

I have written to the Ombudsman, BBC Watchdog, Moneybox, Guardian Money etc. and I advise everyone to do the same.

This sort of 'bad behaviour' (to put it lightly) by banks CAN be discouraged or even reversed or compensated for later IF people stick together.

bluecross · 28 February 2013 at 2:26PM

As well as your solicitor possibly having a copy - A note on the Pre-reg Mortgage Conditions (dated 2001) says "a copy of these conditions has been lodged with the Chief Land Registrar and each of the District Land Registries".

Bank of Ireland tracker mortgage % increase

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