!4000 Bank of Ireland Mortages acquired by Nationwide

opinions4u

Thrugelmir wrote: »

Simply put. Funding, and the cost of.

I understand that. But they've had expensive funding since the end of 2008. So why didn't they exercise their right to increase the SVR at some point between now and then?

Banks throughout the Eurozone are deleveraging their balance sheets to meet ever higher regulatory capital requirements.

Indeed. And one way of achieving this is to make the cost of your book more expensive.

Thrugelmir

opinions4u wrote: »

I understand that. But they've had expensive funding since the end of 2008. So why didn't they exercise their right to increase the SVR at some point between now and then?

Increasing profitability doesn't resolve the issue of funding. With the majority of the Eire banking system nationalised and contracting. Finding £1.1 billion of long term funding is no easy task.

Eurozone inter bank lending is already at crisis point. Expectations are already that there will be fewer banks in Europe in the New Year. As consolidation or nationalisation may be necessary to support the banking system.

justice4people

alan180 wrote: »

Because BOI Have sold my mortgage my payments will increase by 54% and this is legal??!! My other problem is because of the economic climate created by Banks my work (carpenter) has become scarce and when I do work my hourly rate is less than 2-3 years ago therefore if I tried to switch, the lender would not offer me a mortgage because of my earnings!! What can I do but to pay up!!??

Yes, I understand your situ. This is why TMW should be challenged on this sudden hike as they do not consider the impact it will have on some individuals in the acquired BOI transfer. As I have said previously those that can move will and those unable to will be challenged with high hikes!

TMW acquired a strong group of mortgage accounts- who I understand to be 14,000 people that are not in arrears and have paid up to 50% of their LTV. Hence, we should be supported for our responsible behaviour not taken advantage of in this manner.

What I don't understand from the TMW letter is that they do not discuss potential integrated raises as they state would be the case in some of their press release statements?

Thrugelmir

Should have added in previous post. That the BOI still has to dispose of another 5 billion Euros of assets to comply with EU requirements following the bailout. In total Irish banks have to dispose of 73 billion euros of assets by 2013. No small sum.

justice4people

brit1234 wrote: »

Big deal if you have to pay 4.79% interest on the mortgage, that is extremely low still. How about us savers who are paying for your low rates give you what little interest we get as well.

This isn't justice4people just greed4people. :mad:

Agreed the eco climate is crap!

Like you we are great savers, my savings loose value each day due to inflation etc, something we have come to accept! This is my point, why should we pay the banks higher interest rates to boost their profits .... when we gain no benefits from supporting their borrowing to lending gearing.

It is greed4banks not people!

echomiaow

I too am affected by the transfer of my low LTV mortgage to TMW, have taken my complaint to the Council of Mortgage Lenders who although can't complain about the commercil aspects of the transfer of business, said they were happy to lodge complaint with TMW.

Might be worth others doing this too. I've also written to my MP, probably not a lot he can do but again might be worth as many of us as possible making some noise about this.

I happened to listen to Money Box today on R4 where the transfer was briefly discussed - mainly highlighting the lack of clarity in the letter sent from TMW just before Christmas to those affected with no firm indication as to when the SVR hike will take place.

Apparently Nationwide claim the reason the transfer was made to TMW their subsidiary company rather than directly to Nationwide was down to 'better IT systems' TMW have. Not sure I believe that one!

According to Ray Bolger from John Charcol who was on the programme, there may be some possibility of ex BOI mortgagers having access to Nationwides mortgage products at some point, though no mention of whether the Nationwide 3.99% SVR would be available. Again, very much based on what gets announced over next couple of months I suppose...

brit1234

echomiaow wrote: »

I too am affected by the transfer of my low LTV mortgage to TMW, have taken my complaint to the Council of Mortgage Lenders who although can't complain about the commercil aspects of the transfer of business, said they were happy to lodge complaint with TMW.

The BOI is in deep trouble and is state owned now, they don't have much choice. Just remortgage with someone else if you don't like TMW deal.

Or are you one of these people in financial trouble and can't remortgage?

echomiaow

Of course there's always the option for people to get another mortgage elsewhere, if they can afford it. My particular circumstances mean I wasn't planning on having to seek out a new remortgage deal now as I plan to move within the next 6 months so happy to sit on a decent SVR until then. Also more than likely to be costs involved in buying a new mortgage product which I can ill afford at the moment.

needsixnumbers

Hello all, its my first post so please treat me gently :-)

My Bank of Ireland mortgage has just been transferred to TMW. Like others I am unhappy that I seem to be getting punished for being paying on time and having good LTV.

However my feelings on the subject errupted to boiling point today, when I recieved my closing statement from BOI. They have charged me £195 early release fee for the pleasure of closing the account!!!!! The literature that they sent details charges, and states that they no longer apply the charge to new customers. So they are in fact not only punishing for paying on time, but also for being a loyal customer for some time. Has anyone else had a similar letter?

I just don't know what I am going to do. I am faced with redundancy at the moment, and now have to start looking for another mortgage, or else have my mortgage go up. Gutted isn't the word for it.

cardifffan

Not sure if it's of use but my Boi mortgage was originally with bris and west. The offer clearly states that if the lender (now TMW) exceed the bank of England svr by more than 2.5% you can settle in full within 90days and early repayment charges are waved