MSE News: Bank of Ireland to raise mortgage SVR

GMS

madoona wrote: »

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.

'Currently' is the point I was making. When it stated 7.09% you accepted this as a follow on. The rate is now not linked to BofE rate so the 0.5% BofE rate is irrelevant. The link to BofE has expired hence the increase as it is now a true SVR as the lenders discretion.

4.49% is pretty much in line with other lenders. My lender SVR is 4.24% and has been for several years. No link to BofE ever.

Not sure what you think an enquiry will achieve. Skipton increased their SVR despite there being a cap in place due to exceptional circumstances. Not seen too much action for that despite it being a breach of conditions on the face of it.

madoona

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, 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....

OMG The BTLs were with Bristol and West and says nothing about what happens after fixed period on offer doc - the B& W transfer letter (2009) says no changes to my B&W terms but BOI have really given precious little paperwork are you saying they cant touch these mortgages- I am expecting letters for them all as received my main residence letter today?

madoona

GMS wrote: »

'Currently' is the point I was making. When it stated 7.09% you accepted this as a follow on. The rate is now not linked to BofE rate so the 0.5% BofE rate is irrelevant. The link to BofE has expired hence the increase as it is now a true SVR as the lenders discretion.

4.49% is pretty much in line with other lenders. My lender SVR is 4.24% and has been for several years. No link to BofE ever.

Not sure what you think an enquiry will achieve. Skipton increased their SVR despite there being a cap in place due to exceptional circumstances. Not seen too much action for that despite it being a breach of conditions on the face of it.

the next page states that their SVR will not exceed Bank of england rate + 2.5 %

But more interestingly what link are you talking about? when did the Link to BoE expire this has been mentioned twice mine has always been linked to BoE base rate it went up and down like a yo yo.I know of nothing about a severance or that other lenders don't link with BoE.
also 75% reduction for 9 months made no sense in above bloggs what reduction - I clearly dont know what BOI are doing and as their customer I think I should.

Skipton got away with murder as did Chelsea Building Society - all be warned.

temporary1

This seems to have been a fatal flaw in Gordon Brown's great QE experiment; money doesn't flow very easily when there are a lot of fat and sticky palms in the way.
The European public have already been ripped off by their Governments' servitude to multi-national banksters, and now it's the bulding societies' turn to join in the great public robbery too - and who can blame them, when it's an unregulated free for all for every over-indulged, and self-serving, property/asset shark out there.
After all, the financial system in the corrupt, irresponsible, and privatisation-focused ideal of Capitalism, is inevitably skewed to allow the devious, and well-placed, to get away with legalised public robbery, tax avoidance and parasitism, so, let's face it, who wouldn't resist the opportunity!
(With the increase in the policies of lobbying, to create greater social inequality through unchecked deregulation, privatisation and capital accumulation, unaccountable private interests will inevitably trump national responsibility)

As hard-working savers have been so easily coshed and robbed for the last 3 years, it's not hard to imagine that every greedy, tight-fisted and crooked financier has been hawkishly primed, ready and waiting to introduce borrowers, and 'economy-saviour' spenders, to their graveyard of victims as well. Frankly, since no sense of reason in the economy can be presumed anymore, it's more of a surprise that this additional culling of a few more of the population didn't happen sooner.

Unfortunately for some of those proud and gleeful debters, pontificatiing over their superior financial positions over the last 3 years of MSE forum, the evaporation of the mirage, created by artifically borrowed time and unjust policy, may be an uncomfortable wake up call.

Remember, we were eventually all supposed to be in this together - isn't it just your time to tighten your belt too?

And - just my opinion - BtL and multiple property hoarders, you're not providing a 'Florence Nightingale service', you're in the racket for the extra income - if there was a statutory rent cap and an 'incremental additional ownership tax', severely limiting the profit that can be made by multiple btl/owners in the private sector, it'd help free up a more socially focused and fairer housing market, regulated against abuse by those socially irresponsible 'baby factory families' (you know the ones) , but based more on need rather than greed. What a nightmare for the wealthy;- having to fund a constant string of parasitic (but beneficially advantaged) offspring to abuse their mansion(s), or have any preposterously self-indulgent, and under-used status-trophy, reciprocally returned and re-managed for the good of the greater society (being justly owed for creating and contributing all individual wealth), for use as nursing homes, schools, training academies etc.

moneymagnet_2

This thread is so depressing. I was hoping for someone to give me a glimmer of hope! My mortgage repayments will go up by 50% this year and due to other unforeseen economic factors there is no way another lender is going to look at us. Every time the base rate has stayed the same I have breathed a sigh of relief as I (naively) thought that would mean no increase. Who else would ever get away with a 50% increase? It's shocking. So the Government have kept base rates low to avoid people getting into trouble and having their homes repossessed - well that's a fail then isn't it? Why am I not surprised?

darlodave

opinions4u wrote: »

So what action did you take to mitigate it?

So what action could you have taken to mitigate this situation?

Did you consider it criminal when it dropped by 5% in 9 months? Come on, you've seen how fast things can change. You've had extra money in your pockets from a cheap mortgage. Why have you prioritised the spending of this saving elsewhere? (that's rhetorical question, no need to answer that one).

I don't know how long you've been on the 2.99% rate. But it sounds like you've been about £350+ a month "up" for some time. That's £4,200 a year. Maybe more.

What action could you have taken, if you turn the clock back, to have made this situation better?

You are making a basic assumption that the person could afford to pay off more. Aren't you aware of pay freezes, enhanced pension contriobutions and rising fuel bills. Not everybody is on big incomes and shelter is a basic good, isn't it? The 350 "up" has probably been eaten up by other costs so not a net saving. I think rich people on this forum need to be careful about lecturing low income people about elementary economics. Whilst I agree with your concepts, it is much easier for wealthy household to survive these rate increases than poorer people.

darlodave

madoona wrote: »

Its not CHEAP no point in comparing it to other SVR like the ridiculous Mortgage advisor I spoke to today did, it is unprecedented , unreasonable, and unwelcome-please look at the bigger picture.
If your increase is only £20 for example would you not prefer to have spent the £20 on your family/ yourself? IF you let the bank get away with this action who is to say that next January they wont put it up again due to their reserve being low? same reason new hike then you might say BOI is above the rest and is no longer 'normal' . No lender can justfiy a 50% increase in its rates. Don't let them get away with it lodge a complaint.

I agree, if you went to a petrol station and the forecourt told you your petrol was 50 per cent more today you would certainly complain. Another worrying sign that the banking sector doesn't know what it is doing.

moneymagnet_2

I would like to complain, but it looks as if there is no justification, as they are not doing anything wrong according the the posts on here. I don't think I am emotionally strong enough to go through a complaint and get my hopes up, if my complaint is not going to be considered. By the way I think there are some very insensitive, (arrogant?) people posting on this forum at the moment. Some of us are only just hanging on by a thread at the moment and to have a 50% increase thrust on us is devastating.

darlodave

moneymagnet wrote: »

By the way I think there are some very insensitive, (arrogant?) people posting on this forum at the moment. Some of us are only just hanging on by a thread at the moment and to have a 50% increase thrust on us is devastating.

You mean smug well off people who have had the fortune and/or intelligence to have more money than they know what to do with. If I was millionaire I would still feel sorry for the people suffering this badly planned rate rise. I'd rather sacrifice couple of per cent on my savings than see somebody homeless. I actually feel sorry for these posters because they simply do not have a clue about how the other half live. Pay freeze + increased pension contributions + mortage hikes = financial distaster for most people, particularly those in the despised public sector. But then we live in a society with vast extremes of wealth and it is more ignorance than nastiness.

darlodave

moneymagnet wrote: »

I would like to complain, but it looks as if there is no justification, as they are not doing anything wrong according the the posts on here. I don't think I am emotionally strong enough to go through a complaint and get my hopes up, if my complaint is not going to be considered.

They are indeed doing something wrong. The rate rise is well out of kilter with the Base rate which is deeply suspicious for a start. Don't believe some of the posts on here as many of these will have vested interested in seeing their deposit accounts rate rise or have a financial interest in waiting for a list of repossessed homes to come on the market. Capitalists will always defend capitalism usually quoting 'efficient markets hypothesis' when we all know the market is dictated by irrationality. If people like you don't complain they will continue to do what they want. The only lever we have is to
create bad publicity.