Bank of Ireland tracker mortgage % increase

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  • topseyt
    topseyt Posts: 3 Newbie
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    Letter back to BoI (previously Bristol and West B&W) contains following:-


      [*]B&W’s 27 June 2003 letter does not mention or explain Residential Mortgage Condition 6(m).

        [*]No handbook was attached to explain Residential Mortgage Conditions in this offer.

          [*]B&W staff did not mention or explain Residential Mortgage Condition 6(m) to us.

            [*]The Mortgage offer document mentions but does not explain Residential Mortgage Condition 6(m)

              [*]Why were the terms of such a key Residential Mortgage Condition 6(m) hidden from view and not incorporated into our Mortgage offer terms?

              Mywife and I feel ambushed because it has not been explained by your staff orcorrespondence that your reliance on obscure condition could increase ourmortgage interest payment by 100% (2.25% to 4.99%).

              Wedo not think you have treated us fairly as financial products are supposed tohighlight key terms and conditions (i.e. condition 6m), rather than burythem in the small print.


              Pleasetherefore rescind said 25th February 2013 letter and re-confirm our1.75% mortgage rate differential."

              Thank you Mr Ray Boulger - mortgage broker for talking to the Telegraph on Sunday. BoI have not treated customers fairly contractually ! Also contacted my local MP today. Make as much noise possible in the media and you never know the negative publicity may change BoI mortgage increase !:)
            • smiffy
              smiffy Posts: 173 Forumite
              First Anniversary Combo Breaker First Post
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              Does anyone have a copy of the Residential Mortgage Conditions booklet dated after 2001?

              I'm trying to establish when the clause changed to only allow a differential change in favour of the customer.

              thanks
            • brit1234
              brit1234 Posts: 5,385 Forumite
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              lazyjack wrote: »
              If that's the case how are other lenders managing to honour their tracker mortgages at even lower rates than BOI ?

              Cause the UK banks have a higher credit rating than the Irish ones. So it is cheaper for HSBC to borrow than BOI. However I expect borrowing costs to rise for UK banks as the recession goes on.
              :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

              Save our Savers
            • Beej_1973
              Beej_1973 Posts: 20 Forumite
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              brit1234 wrote: »
              its very simple, the cost of borrowing for boi is far higher than the boe rate of 0.5%. The bank is in trouble and it wants rid of its bad loans to survive.

              Solution either move to another lender or stay and pay the higher rates.


              ...or complaint to the bank....and then to the fsa.....
            • Tippy21
              Tippy21 Posts: 1 Newbie
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              I am in the same boat as you guys, I have written to the bank of ireland not accepting the increase - when I get a letter saying - tough - I will go to the Ombudsman.

              You have to write to the bank first and give them chance to respond but if you are not happy with the response you can take it to the Ombudsman.

              It will cost the Bank of Ireland £750 to fight each complaint so if all 13,500 of us take this route it will cost the BoI £10,125,000.00

              They may back down and we could win the fight!

              If we loose this battle it could open the doors for all the other banks to do exactly the same to everyone else.

              Lets GO GET THEM!
            • kingstreet
              kingstreet Posts: 38,766 Forumite
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              You need to differentiate between residential mortgages and those for BTL property.

              FOS has no jurisdiction on a BTL, as it's unregulated.

              You would have to try court action in that event.
              I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
            • Hobby
              Hobby Posts: 28 Forumite
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              kingstreet wrote: »
              You need to differentiate between residential mortgages and those for BTL property.

              FOS has no jurisdiction on a BTL, as it's unregulated.

              You would have to try court action in that event.


              That is not correct. The FSA may not have any regulation over BTL mortgage however the FOS definitely do have.
            • tcmum
              tcmum Posts: 2 Newbie
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              I inherited B of Ireland when they bought out my buy to let mortgage provider, I have been paying 2.25 % which is still a healthy profit when the BoE base rate is only 0.5%. They wrote and told me it would go up to 4.99%.
              This is daylight robbery.
              My tenant can' afford a rent rise but when the mortgage has more than doubled, what can I do ?
            • kingstreet
              kingstreet Posts: 38,766 Forumite
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              Hobby wrote: »
              That is not correct. The FSA may not have any regulation over BTL mortgage however the FOS definitely do have.
              That's odd. TBH I'm not a BTL specialist and haven't done one in about ten years, but my understanding was the usual regulation and consumer protection for residential mortgages didn't apply unless it was a regulated BTL where the property was more than 40% let to a family member.

              That meant no FSA regulation, no FOS jurisdiction and no FSCS cover.

              That isn't the case, then?
              I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
            • Hobby
              Hobby Posts: 28 Forumite
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              kingstreet wrote: »
              That's odd. TBH I'm not a BTL specialist and haven't done one in about ten years, but my understanding was the usual regulation and consumer protection for residential mortgages didn't apply unless it was a regulated BTL where the property was more than 40% let to a family member.

              That meant no FSA regulation, no FOS jurisdiction and no FSCS cover.

              That isn't the case, then?

              The FSA and FOS are not the same services. The FOS has a much wider sope in determination than the FSA. I have spoken to them and they conform they will determine , more from a compensation issue than a legal issue.
            This discussion has been closed.
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