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Bank of Ireland tracker mortgage % increase
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# 1
Dylboy
Old 27-02-2013, 4:57 PM
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Default Bank of Ireland tracker mortgage % increase

Has anyone received a letter from the Bank of Ireland recently informing them of a MASSIVE interest rate rise on their buy-to-let 'tracker' mortgage? My letter this morning notified me that my interest rate would rise from 2.25% to 4.99% as of May 1st. I have had the mortgage for 8 years and never defaulted so this isn't a penalty, it is as they describe it a 'special condition' in my loan agreement which allows them to do it. Ironically they cite the banking crisis as a special condition (something that they caused themselves!). This is a 'tracker' mortgage which follows the Bank of England base rate which hasn't changed, so I'm going to fight it - not that I stand a chance - just wondered if anyone else had fallen victim to this?
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# 2
Graham7979
Old 27-02-2013, 5:26 PM
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Default Me too

I have had the same letter today, I am in the same boat as you having had this buy to let mortgage on a base rate tracker basis for over 10 years and have never missed a payment.

The bank entered into an agreement with me and are now defaulting on it, if the bank if England base rate went up to 10% bank of Ireland would expect me to pay the mortgage, if I could not afford it they would take my property back, I cannot believe they are allowed to do this but I guess they would not do it if it were illegal but I would love to fight it as the rate is more than doubling which can't be right?
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# 3
cs1800
Old 27-02-2013, 5:29 PM
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Yes I have two mortgages they are absolute shark - do you remember that they were forced to put 2000 people back on trackers in 2011 and pay compensation, I am not allowed to post the link but a google search will find it, it is a very interesting story.
So now they have changed the rules to shaft them and everyone else on a tracker. I have spoken with them and they say they can double the differential at their will and there is nothing I can do so this time next year if they choose they could double my mortgage again unless I give up the tracker and go tack a fixed rate at 4.49%. The problem is we took a chance and opted for trackers and because we won out they have now changed the rules if base rates had gone to 10% they would not have been so keen to help us out they would have just told us we took a chance and lost. Fact is they are sharks and are trying to screw us we can't let them get away with it, I have no doubt what they are trying to do is wrong and I am going to cancel my DD and set up a standing order to pay the mortgage at 2.25% and let them take me to court.
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# 4
opinions4u
Old 27-02-2013, 5:36 PM
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Quote:
I am going to cancel my DD and set up a standing order to pay the mortgage at 2.25% and let them take me to court.
You will trash your credit file and lose your house.

Complaints process. FOS. Sort it that way. In the meantime, pay what they demand - under protest.
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# 5
Dylboy
Old 27-02-2013, 5:40 PM
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I am definitely going to fight this. I've been advised to make an official complaint to the bank - to which they have 8 weeks to reply - and then take their response to the Financial Ombudsmen Service. It's long winded but in the meantime I'm going to stir up as much sh*t as I can for them and suggest you all do the same by emailing BBC Watchdog, Radio 4's Moneybox, Radio 2's Jeremy Vine and anyone else you can think of!
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# 6
Rob n Bar Stewards
Old 27-02-2013, 5:49 PM
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I think we need to understand and agree to whom we complain and whether a co-ordinated approach is best. Also I wonder whether this suggests the bank is not as liquid as it needs to be and therefore savers should withdraw their funds......might attract some Govt / BoE attention ?!
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# 7
richard69
Old 27-02-2013, 5:54 PM
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Default Me too

I've got 5 BTL mortgages with B of I originally Bristol and West with @ 12 years left to run. This news is going to leave me with no profit at all after paying for repairs and voids between tenants etc. Is there anything legally that can be done to avoid this? My current rates vary from 1.75% to 2.09% and they are all being raised to 4.99% in May!! This is a 2.9-3.24% rise!! Is this legal, feels more like robbery to me, how can they change a contracted agreement just to pay for their short comings.
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# 8
Dylboy
Old 27-02-2013, 5:57 PM
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I'm all for a coordinated approach and am open to suggestions. Surely they can't get away with this?
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# 9
cockaleekee
Old 27-02-2013, 5:58 PM
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What is the "special condition" in your agreement that the bank refers to?
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# 10
cs1800
Old 27-02-2013, 5:59 PM
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Quote:
Originally Posted by Graham7979 View Post
I have had the same letter today, I am in the same boat as you having had this buy to let mortgage on a base rate tracker basis for over 10 years and have never missed a payment.

The bank entered into an agreement with me and are now defaulting on it, if the bank if England base rate went up to 10% bank of Ireland would expect me to pay the mortgage, if I could not afford it they would take my property back, I cannot believe they are allowed to do this but I guess they would not do it if it were illegal but I would love to fight it as the rate is more than doubling which can't be right?
No your wrong have a look at what happened in 2011 when they put 2000 people on to fixed rates they were forced to put them back to trackers and pay compensation so they do get it wron and have done so in this case
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# 11
Dylboy
Old 27-02-2013, 6:03 PM
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Quote:
Originally Posted by cockaleekee View Post
What is the "special condition" in your agreement that the bank refers to?
I have requested a copy of the T&Cs to see what this 'special condition' is. In the letter it says they are allowed to do this "for a number of valid reasons" including increasing their capital reserves and to cover their rising costs.
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# 12
richard69
Old 27-02-2013, 6:05 PM
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Default special condition explaination from the leaflet

Why are you increasing the BTL Base Rate Tracker differential?

"Currently, banks are required to hold more capital reserves, as part of measures to protect the banking system from the type of scenarios seen during the banking crisis. In addition, the cost of funding mortgages has increased significantly for Bank of Ireland and the market as a whole in recent years.
Your loan agreement has a special condition which allows us to change the tracker differential for a number of valid reasons including the ones mentioned above".

So they haven't really said apart from we messed up and you're going to pay for it.
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# 13
newbie nora
Old 27-02-2013, 6:06 PM
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Default bank of ireland

all i can add is thank god for the internet as without it we would be fighting on our own, ive arrived home from work today to two of these letters , how can they expect us to accept a rise of 2.74 per cent on each mortgage, to start i will complain direct to the bank and keep an eye on here for any other plan of action
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# 14
cockaleekee
Old 27-02-2013, 6:06 PM
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Quote:
Originally Posted by Dylboy View Post
I have requested a copy of the T&Cs to see what this 'special condition' is. In the letter it says they are allowed to do this "for a number of valid reasons" including increasing their capital reserves and to cover their rising costs.
Why do you not already have this paperwork?

Before complaining to the FOS et al, you need to work out what you are actually complaining about.
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# 15
Rob n Bar Stewards
Old 27-02-2013, 6:08 PM
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Lets start by bombarding this address....


public.enquiries@hmtreasury.gsi.gov.uk

Rob n
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# 16
cs1800
Old 27-02-2013, 6:09 PM
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Here is the interesting fact they have cleverly put the new tracker rate at 4.99% with their fixed rate at 4.49% that's a nice round .5% saving coincidence or sharp practice? It is clearly a con its a similar ploy they did in 2011 when they promised people they would be better off on fixed rate then had to pay compensation. Fact is they came unstuck with these trackers and are starting to panic with talk of the Bank of England going to 0% to encourage lending, this decision will be reversed I have no doubt about that they will not be allowed to do this by the banking ombudsman.
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# 17
cs1800
Old 27-02-2013, 6:17 PM
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I have just lodged a complaint with the financial ombudsman, I think it may help if more people do the same. I can#t post the link but a google search will find them easy enough.
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# 18
Dylboy
Old 27-02-2013, 6:17 PM
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Quote:
Originally Posted by cockaleekee View Post
Why do you not already have this paperwork?

Before complaining to the FOS et al, you need to work out what you are actually complaining about.
I have asked them to send me a copy with the relevant section highlighted as I can find no reference to this 'special condition'. And as I said, I will be complaining to the bank in the first instance, not the FOS.
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# 19
Dylboy
Old 27-02-2013, 6:21 PM
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Quote:
Originally Posted by cs1800 View Post
I have just lodged a complaint with the financial ombudsman, I think it may help if more people do the same. I can#t post the link but a google search will find them easy enough.
I spoke to them today but they said they couldn't do anything until the bank had responded to my complaint, and they have 8 weeks to do that apparently!
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# 20
DCFC79
Old 27-02-2013, 6:51 PM
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Originally Posted by cs1800 View Post
I have just lodged a complaint with the financial ombudsman, I think it may help if more people do the same. I can#t post the link but a google search will find them easy enough.
Thats a waste of time as you need to go to you bank first and complan then after 8 weeks if the answer isn't acceptable then you go to the FOS.
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