65% increase in rate

opinions4u

It amazes me that a loss making company like this that's struggling to renew wholesale funding and needs to reduce the size of their mortgage book has left the SVR at 2.99% for as long as they have.

Anybody know why it's taken them 3 years to do this?

kingstreet

opinions4u wrote: »

It amazes me that a loss making company like this that's struggling to renew wholesale funding and needs to reduce the size of their mortgage book has left the SVR at 2.99% for as long as they have.

Anybody know why it's taken them 3 years to do this?

An SVR cap applied to 31/03/12, which is now expiring.

madoona

minibbb wrote: »

I just got this letter through this morning from the BOI and its outrageous! Never liked them mind you as the service I have experienced in the five years i've been with them has been appalling.

Have already called my mortgage adviser to see if I can go elsewhere.

It IS outrageous , make an official complaint to the bank and the Financial ombundsman- I have and I have spoken to the top Mail on Sunday financial reporter . They will reporting on BOI this Sunday , SVR may be variable but not to that extent in 1 year in this economic climate. Full investigation required on BOI motives and if you dont complain they will get away with it and others lousey Banks will follow. Plus their service is appalling .

opinions4u

madoona wrote: »

It IS outrageous , make an official complaint to the bank and the Financial ombundsman- I have and I have spoken to the top Mail on Sunday financial reporter . They will reporting on BOI this Sunday , SVR may be variable but not to that extent in 1 year in this economic climate. Full investigation required on BOI motives and if you dont complain they will get away with it and others lousey Banks will follow. Plus their service is appalling .

I think you'll find that the FOS is not in a position to rule on a commercial pricing decision.

As for the extent of the change, that reflects the ending of an artificial cap linking SVR to base rate. That cap effectively made this mortgage book a loss maker (or close) for BOI.

The extent of the change merely reflects a return to normality of lending margin. Most major lender SVRs sit between 3.99% and 4.99% Many of the smaller lenders are higher still.

fflump

Bottom line is that anyone on a SVR is subject to being milked dry by their mortgage provider so get off them ASAP.

Thrugelmir

opinions4u wrote: »

It amazes me that a loss making company like this that's struggling to renew wholesale funding and needs to reduce the size of their mortgage book has left the SVR at 2.99% for as long as they have.

Anybody know why it's taken them 3 years to do this?

They've offered incentives to leave, sold a chunk of the mortgage book to the Mortgage Works etc.

So plenty of warning.

Has nothing to do with raising wholesale funds. More a complete scaling down of the Irish banking system.

Thrugelmir

madoona wrote: »

It IS outrageous , make an official complaint to the bank and the Financial ombundsman- I have and I have spoken to the top Mail on Sunday financial reporter . They will reporting on BOI this Sunday , SVR may be variable but not to that extent in 1 year in this economic climate. Full investigation required on BOI motives and if you dont complain they will get away with it and others lousey Banks will follow. Plus their service is appalling .

I hate to say it. You are wasting your time. The Mail isn't renowned for its financial journalism.

The motives are well known. All started with a small mortgage lender called Northern Rock, then Bradford and Bingley. The dominoes started to topple though when Lehmans crashed. Then HBOS and RBS were 48 hours from being declared insolvent. The aftermath of which is now rippling through the global banking system.

Thrugelmir

opinions4u wrote: »

I think you'll find that the FOS is not in a position to rule on a commercial pricing decision.

There's no grounds for the FOS to become involved. The FSA would need to intervene.

PasturesNew

Look on the bright side, next time it goes up 1.5% that'll only be an increase of 39.5%!

So the rate of increase will be DECREASING by a WHOPPING 30+%!!

Win.

shortchanged_2

madoona wrote: »

It IS outrageous , make an official complaint to the bank and the Financial ombundsman- I have and I have spoken to the top Mail on Sunday financial reporter . They will reporting on BOI this Sunday , SVR may be variable but not to that extent in 1 year in this economic climate. Full investigation required on BOI motives and if you dont complain they will get away with it and others lousey Banks will follow. Plus their service is appalling .

You've got nothing to complain about I'm afraid. They aren't doing anything that they are not allowed to.
A SVR is just that, a variable rate that the bank can set at any rate they so wish. If people fail to realise this when they sign the paperwork for a massive mortgage then there is no hope.