bank of ireland mortgage

ProperBo

hello all, has anyone received a letter asking to switch to first direct, no fee £1000 cashback but higher svr. very strange considering itsfrom my current mortgage lender, here is their reason. i quote " in 2009 we took the decision to close our bristol and west and bank of ireland home mortgage brands. we now have to reduce the number of mortgage customers we have, therefore we are no longer able to offer competitive products if you decide to change your existing mortgage." i'm going to ring on monday to ask why, am i being pushed, what if i refuse to move as i have a good svr as it stands.

opinions4u

You could stay exactly where you are if you wanted to.

asking to switch to first direct

i'm going to ring on monday to ask why, am i being pushed

Are they asking, or pushing? Not sure it matters. They're not forcing.

I don't know why you need to call to ask anyway. The letter explains it.

in 2009 we took the decision to close our bristol and west and bank of ireland home mortgage brands. we now have to reduce the number of mortgage customers we have, therefore we are no longer able to offer competitive products if you decide to change your existing mortgage.

What guarantees does your SVR give you?

Thrugelmir

[QUOTE=jjbell7;50776669__i'm_going_to_ring_on_monday_to_ask_why,_am_i_being_pushed,_what_if_i_refuse_to_move_as_i_have_a_good_svr_as_it_stands.[/QUOTE]

If you don't move. As the BOI says they can no longer guarantee competitive interest rates in the future. Nothing personal, the reason is all business related.

bigadaj

Don't know if anyone knows the reason for this, as it is counterintuitive for a lender to want to shrink their mortgage book but maintain a low svr.

opinions4u

bigadaj wrote: »

Don't know if anyone knows the reason for this, as it is counterintuitive for a lender to want to shrink their mortgage book but maintain a low svr.

Hence my question above "What guarantees does your SVR give you? "

I assume there's a base rate guarantee / link of some sort. Presumably the mortgages they sold to Nationwide had so such protection.

Thrugelmir

bigadaj wrote: »

Don't know if anyone knows the reason for this, as it is counterintuitive for a lender to want to shrink their mortgage book but maintain a low svr.

For those borrowers that remain. The interest rate will rise. That's the commercial reality.

First Direct have high underwriting criteria so many potential borrowers won't have this exit route.

jaysb

as they say - they are reducing the exposure on mortgages - like many ex Bristol & West, BOI gave us not much choice and sold a job lot to The Mortgage Works (part of Nationwide).

BOI SVR was good at 2.99%, but I've now remortgaged to a slightly better deal, and hopefully with someone who isn't going to sell off my mortgage again

ghall54

We're in the same position and just going through discussions with First Direct. I read online that BOI are looking for a buyer for all of their remaining portfolio so I figure there is a risk we will be sold to someone with a higher SVR?

Thrugelmir

ghall54 wrote: »

We're in the same position and just going through discussions with First Direct. I read online that BOI are looking for a buyer for all of their remaining portfolio so I figure there is a risk we will be sold to someone with a higher SVR?

BOI sold a chunk of its portfolio to the Mortgage Works last year. In March the SVR on the transferred mortgages increases. The rate charged does not have to bear any relation to the new lenders existing rates.