MSE News: Bank of Ireland to raise mortgage SVR

Thrugelmir

madoona wrote: »

Oh there I go again a consumer with no choices , it is the wider picture accept the facts BTL were also widely mis sold -anyone checking the yield values when product was sold - no they were tripping over themselves to do the BTL business .

BTL is not a consumer product. It is unregulated lending. In that the borrower is considered to be capable of knowing what they are doing or seeking professional advice. BTL is no different to any business borrowing.

The profit made should have used to repay the capital owed.

madoona

GMS wrote: »

What was the SVR quoted as on your BofI mortgage which you agreed to?

I was on a fixed rate 4.1% with reverted to bank Of E base rate +1.75% but then I had to fix again in 2007 on a 3 year fix at 5.65% came out on 31/01/2010 SVR states Bank of england base rate plus 2.5 = 2.99%

But it does state SVR may change and thats why BOI is so sure they can do it . But my argument is how can they get away with a 50% increase in the current economic market, its a dangerous precedence to allow a Bank to set , are they being fair and reasonable and will the other Banks follow. If I had a choice I would move it but I dont' have that choice.

GMS

madoona wrote: »

I was on a fixed rate 4.1% with reverted to bank Of E base rate +1.75% but then I had to fix again in 2007 on a 3 year fix at 5.65% came out on 31/01/2010 SVR states Bank of england base rate plus 2.5 = 2.99%

But it does state SVR may change and thats why BOI is so sure they can do it . But my argument is how can they get away with a 50% increase in the current economic market, its a dangerous precedence to allow a Bank to set , are they being fair and reasonable and will the other Banks follow. If I had a choice I would move it but I dont' have that choice.

In December 2007 BofE base rate was 5.5%. Lowest rate in 2007 was 5.25 so you agreed to, by completing on the mortgage a SVR of a minimum of 7.75% (BBR at 5.25 + 2.5)

If you were expecting this how can you now claim it to be wrong when the rate goes to 4.5%?

Did BofI complain to you when you were paying 2.99%? Of course not. You knew the rate was variable and it has risen in line with the T&C's.

Whether other banks choose to follow or not only time will tell. Personally I think any bank who can do will do to bring themselves in line with others. Much easier to follow the crowd than start the revolution.

madoona

Thrugelmir wrote: »

BTL is not a consumer product. It is unregulated lending. In that the borrower is considered to be capable of knowing what they are doing or seeking professional advice. BTL is no different to any business borrowing.

The profit made should have used to repay the capital owed.

First BTL venture -3 years no profit -deficeit actually.
1.5 years marginal profit but maintenance charges increased from £750 to £1250 per annum unable to do a damn thing about it. My mortgage broker no longer trading and my conveyancing solicitor struck off last year - not wishing any sympathy but yep I got professional advice alright.

Needless to say I won't be investing in BTL- that's a business decision I made all on my own - oh and I decided I did'nt need professional advice because I reminded myself where that got me last time.

djbacc

madoona wrote: »

Wrong my BTL empire doesn't exist ( negative equity) the BTL was with Bristol and West , I resisted the move to BOI to no avail , BOI rates for BTL is 6.99% they are Mickey Mouse playing around in the BTL market , which is what i thought when they proposed the take over worst thing that could have happened and not my choice . Oh there I go again a consumer with no choices , it is the wider picture accept the facts BTL were also widely mis sold -anyone checking the yield values when product was sold - no they were tripping over themselves to do the BTL business . So BW and BOI should stand by the product they sold fixed rate then base rate plus 1.75% . They didn't mention if things got tough they would hike SVR up by 50% . Don't feel too sorry for my tenants 3 families with small children when they are out on the streets because the land lady has been spiked with an unprecedented , unreasonable and unwelcome interest rate increase of 50% and can no longer afford the mortgages . Oh and when more BTL go to repossession don't expect the rental prices to come down to much. Not sure what you got against BTL if I had a choice I would sell up - you buying ? or are the rates to high for you to invest . So I rest my case that there will be a knock on effect on the wider economy. Can't put everything right in one go but stopping Gung ho banks putting up SVRs will be a start.

I also have a BoI BTL mortgage and that states that at the end of the fixed rate it becomes base rate + 1.75%, this is not changing because those are fixed terms that can not be changed, it is only if your mortgage drops onto the SVR after the fixed term expires that you need to worry. This is happening with the property that I now live in, and so it is time to move move to another provider, it was always going to happen....

Thrugelmir

djbacc wrote: »

I also have a BoI BTL mortgage and that states that at the end of the fixed rate it becomes base rate + 1.75%, this is not changing because those are fixed terms that can not be changed,.

They well sell the mortgage book on.

djbacc

Thrugelmir wrote: »

They well sell the mortgage book on.

They may well do but terms are terms, as I am on SVR on my current residence then I have to accept that they can go up as well as down and this would be the same even if the book was sold on and I had to accept a new lenders SVR but since my BTL rate is fixed at Base Rate + 1.75% there is no need to worry until the base rate begins to rise. They can not change the terms on the BTL as much as I can't change the SVR on my residential mortgage

madoona

GMS wrote: »

In December 2007 BofE base rate was 5.5%. Lowest rate in 2007 was 5.25 so you agreed to, by completing on the mortgage a SVR of a minimum of 7.75% (BBR at 5.25 + 2.5)

If you were expecting this how can you now claim it to be wrong when the rate goes to 4.5%?

Did BofI complain to you when you were paying 2.99%? Of course not. You knew the rate was variable and it has risen in line with the T&C's.

Whether other banks choose to follow or not only time will tell. Personally I think any bank who can do will do to bring themselves in line with others. Much easier to follow the crowd than start the revolution.

One important word you missed 'currently' it states ;
5.65%( followed by Standard variable rate Currently 7.09%)
and as you can see on other blogs the rate is variable so that means it can go down as well as up . Well gues what it down right now at 0.5 so Currently my SVR should be 2.99%

and further more BOI cannot complain when I was paying 2.99 cos they were 'currently' on the right rate .

Plus I can complain that the rate goes up because despite it being a mere 4.49% the hike is 50% not in line with other lenders and unreasonable in the current climate.

It is the percentage increase you have to look at and the motives behind that - so lets have the records of BOI made public and check out under the BASLE rules above if the Bank is fit for purpose- to lend money . Full enquiry me thinks.

MiserlyMartin

Thrugelmir wrote: »

Has he? GO doesn't work at the BOE. The BOE is independent.

:rotfl:If the BoE is independant, in reality, then pigs have flown and Kirsty Alsopp has eaten her hat.

Thrugelmir

madoona wrote: »

It is the percentage increase you have to look at and the motives behind that - so lets have the records of BOI made public and check out under the BASLE rules above if the Bank is fit for purpose- to lend money . Full enquiry me thinks.

Suggest you book some flights to Dublin.