BOI and the mortgage works

mikeassured

Hi

I had an unpleasant surprise today in a letter from the mortgage works. Apparantley the BOI SVR of 2.99% will only apply up until march 2012, after which it will probably increase to the TMW rate of 4.79%.

Not looking forward to a hike of nearly 2 percent. My mortgage only has a couple of years or so to go so not worth moving elsewhere.:(

Sue

farcove54

We had the same letter and it means our mortgage is going up by £350 per month! We thought this may be the case when we heard that TMW was part of Nationwide and we would then be put on their rate . Contacted Nationwide who confirmed it so we are moving. I did post on a thread about it wondering what others had done some of the responses I got were quite rude !
Seems as though TMW can do what they like, we only have 7 years left on ours.
Kay

Thrugelmir

Ask the Nationwide what they'll offer you.

Little point staying put if there's an alternative.

lessonlearned

We received our letter today.

Unfortunately we have no alternative but to stay put. We'll be OK at 4.79 but if (when) the bank rates start to climb again things are going to be rough.

justice4people

Yes, I also got the same TMW letter advising of the increase in SVR from 2.99% to 4.79%!

Can't believe this, the letter had the cheek to say' your terms and conditions have not changed!' how is approx. doubling our interest rate not changing what we signed up to with BOI?

After 10 years of being with BOI- change will be inevitable however, it means more money in the pockets of the banks. Why can't TMW be transparent and say - we want to make more money out of you hence setting SVR to 4.79% because we can.

TMW needs to understand business is about PEOPLE and they are in the business of dealing with PEOPLE not numbers on a paper. Some of us clients have been with BOI for 10 years, paid responsibly each month, made over payments when possible and should be treated with respect and not ripped off like this.

All BOI mortgage owners moved to TMW - need to act and speak up and stand tall on this.


I will be writing to my MP too to raise this in parliment as the 'person on the street' is being exploited yet again! I urge you to do the same in addition to complaining to the TMW team about dissatisfaction with this hike.

We need to get onto facebook and continue to unite the 14,000 account holders transferred to TMW as I find it difficult to understand why we should be accepting of this situ? How much more can the person on the street take? Lets stand tall and no more rip of Britain!

Check out the consumer action group comments too.

opinions4u

TMW needs to understand business is about PEOPLE and they are in the business of dealing with PEOPLE not numbers on a paper.

No. They are in the business of managing down a mortgage book that they've acquired and exploiting as much profit as they think they can get away with.

the letter had the cheek to say' your terms and conditions have not changed!

Which raises the question about why was the BOI rate so low? What compelled them to keep it low and why has that now changed?

This will form the basis of any complaint you wish to puruse.

(Don't forget, 4.79% is still well below what you ever expected the SVR to be)

Thrugelmir

justice4people wrote: »

Can't believe this, the letter had the cheek to say' your terms and conditions have not changed!' how is approx. doubling our interest rate not changing what we signed up to with BOI?

Reflects the cost of funding the mortgage book. Unfortunately low lending interest rates are unsustainable. Across all UK mortgage lenders 4.79% is a reasonable SVR.

All the Irish banks are unwinding their UK mortgage books as they return to a domestic based business model.

madeupname1

What BOI / TMW have done may be legal but agree with those who say it isn't fair. If you have contracted with a party at one price it is galling to find out that that party can transfer your contract to someone else who can then charge you double for the same service. Also, an interest rate at 4.79% may be below what expectations may have been on a historical basis, but its pretty uncompetitive in the current market. I am on a fixed rate with BOI so am unaffected by this transfer. However, I will certainly make it a priority to transfer to a different lender when that rate comes to an end.

Thrugelmir

madeupname1 wrote: »

If you have contracted with a party at one price it is galling to find out that that party can transfer your contract to someone else who can then charge you double for the same service.

BOI would have considered the options prior to selling the mortgage book on. There was nothing to stop BOI raising their SVR.

Average SVR across all lenders was 4.78% in November. With some as high as 6%. So the NW appear to have pitched the new rate very precisely.

madeupname1

Thrugelmir wrote: »

Average SVR across all lenders was 4.78% in November. With some as high as 6%. So the NW appear to have pitched the new rate very precisely.

That may be the average SVR, but there are many mortgage deals where the interest rate payable is significantly less even at high LTVs.

Thrugelmir

madeupname1 wrote: »

but there are many mortgage deals where the interest rate payable is significantly less even at high LTVs.

For fixed term products look at the follow on rates. Many are BOE base plus 3% to 4%. So while initially attractive not so in the longer term.