Bank of ireland mortgage

mac1001

27/09/11 BOI wants me to move to another lender (getting pressure from EU?) and has cancelled the Early Repayment Charge (over £2000) - aand will pay me £1000!?

Why?

What might happen if I stay?

Mevs01

Hi I had this letter as well, but since i am on a poor fixed rate i have jumped at the chance. I feel its a genuine opportunity to leave and get a better deal. Although i was wondering why myself initially.If you stay you will just carry on paying as normal.IMO they probably want to reduce the amount they have borrowed to reduce the costs that they are charged. As BOI pay interest to whoever they lend money from. could well be from the Government fund somewhere.I'm no expert though but my potential savings now could be £250 per month. Let it happen.

opinions4u

They don't have the wholesale funding that they need to support their mortgage book, so encouraging people to go elsewhere is cheaper than paying to replace that wholesale funding.

Consider the offer carefully. If you are due to fall on to a very attractive tracker rate in the not too distant future then rejecting it might be the best response to the offer.

Thrugelmir

mac1001 wrote: »

27/09/11 BOI wants me to move to another lender (getting pressure from EU?)

Irish banks grew too big in relation to the economy with a high exposure to UK property market. The Eire government as in the UK was forced to bail the banks out and take part ownership. They are contracting their asset books.

So in plain language wish you to take your business elsewhere.

handytips

Pay a £1000 to leave them. I would ring up and ask for more. Working on the principle the first offer is never the best offer. I have a few clients who were with Bristol and West whom BOE took over all are out of thier current deals on a reversionary rate of 2.99 however as they were all FTB's the Ltv are quite high, so it would be difficult to place them elsewhere, however if BOE are going to make substantial offers for the clients to move then i may have to get the clients to pick the phone up.

Wh05apk

Bear in mind that their SVR is 2.99% and most borrowers with them probably used them as they had attractive rates for high loan to value stuff, then you may struggle to remortgage elsewhere, it may be worth holding out to go onto their SVR?

helpmysis

I had a letter from them, but they only offered to reduce my early repayment charge. I have a BTL mortgage with them, and it is fixed at 6%, however next year when the fix comes to an end it goes to 1.75% above BOE base rate, so I'm not going anywhere!!

I guess in my case they don't want me to be on such a low rate, however they haven't made it at all attractive for me to go!

angry_chap

Hi All,

I am having big problems with BOI trying to force me to pay my ERC (see my other thread, too new to post a link ). If any of you would be so kind as to scan and send me a copy of the letter, removing all your personal details, I can at least ring them up and quote it to them to asky why they are discriminating against me

dreamalittle

Man, I hope I get one of these letters! Would love to ditch our current BOI fix (still over two years to go), but the ERC makes it uneconomical. I'd jump at this offer. Fingers crossed it's in the post!