MSE News: Bank of Ireland to raise mortgage SVR

ogriboy

I have been offered to replace my BOI buy to let with a Godiva mortgage from coventry.On the face of it it looks fine at 2.49% which is roughly where I am at the moment. my LTV is 55% subject to valuation and the dog next door not barking. Got to say its tempting for 5 year fix and the ability to extend the term to 17 years if I need to.

But you know what they say about things looking to good !!

I see the posts on SVR rises and the quips about not taking advantage of low rates to pay back. Trouble is other things swarm in to devour those savings like partners redundancy, fuel, loss of gen income through no pay rise and bad luck. Only a viable argument if other things stay the same relatively.

Could be worse I also have a Santander mortgage on the main home have come off 2.99 onto 4.75 with an offer to go fixed onto 4.79!! This is particularly galling as only 2 years they offered us better terms through our LTV which has not changed at 60%. Apparently it our profile which is no arrears no missed payments. They know we cant go elsewhere as I am self employed on interest only and so the
squeeze has started. The FSA has something to say about this and recognise the term 'Mortgage prisoner' we think Santander are in breach of FSA ruling on the basis they are offering us less favourable rates than anyone else could reasonably expect to receive. Who can cope with this rapid rate, not many.

Thrugelmir

ogriboy wrote: »

we think Santander are in breach of FSA ruling on the basis they are offering us less favourable rates than anyone else could reasonably expect to receive.

No breach of any rule. Dig deep and get to grips with your finances.

opinions4u

ogriboy wrote: »

I have been offered to replace my BOI buy to let with a Godiva mortgage from coventry.On the face of it it looks fine at 2.49% which is roughly where I am at the moment. my LTV is 55% subject to valuation and the dog next door not barking. Got to say its tempting for 5 year fix and the ability to extend the term to 17 years if I need to.

But you know what they say about things looking to good !!

I see the posts on SVR rises and the quips about not taking advantage of low rates to pay back. Trouble is other things swarm in to devour those savings like partners redundancy, fuel, loss of gen income through no pay rise and bad luck. Only a viable argument if other things stay the same relatively.

Could be worse I also have a Santander mortgage on the main home have come off 2.99 onto 4.75 with an offer to go fixed onto 4.79!! This is particularly galling as only 2 years they offered us better terms through our LTV which has not changed at 60%. Apparently it our profile which is no arrears no missed payments. They know we cant go elsewhere as I am self employed on interest only and so the
squeeze has started. The FSA has something to say about this and recognise the term 'Mortgage prisoner' we think Santander are in breach of FSA ruling on the basis they are offering us less favourable rates than anyone else could reasonably expect to receive. Who can cope with this rapid rate, not many.

Which FSA ruling?

ogriboy

The ruling that came into effect on 26th October 2012 relating to 'Trapped borrowers' that states

'This prevents lenders from taking advantage of a customers situation, or treating them less favourably than other similar customers, for example by offering less favourable interest rates or other terms'.

Thrugelmir Your Mantra maybe to lean back and take it, its not my style to be ripped off, but its certainly why nothing gets done to promote even handedness.

Nothing wrong with my finances I can assure you but your answer clearly displays a lack of understanding for the reality of the situation for people with finite incomes.

kingstreet

ogriboy wrote: »

The ruling that came into effect on 26th October 2012 relating to 'Trapped borrowers' that states

'This prevents lenders from taking advantage of a customers situation, or treating them less favourably than other similar customers, for example by offering less favourable interest rates or other terms'

Which they would simply satisfy by offering no new products to such existing borrowers. Offering only standard variable rate shows equal treatment to those similar customers.

ogriboy

Ah that must be ok then!

ogriboy

you would of course never be able to prove it without access to 'similar customers'however I have as stated begun taking action and indeed there are better terms for me so I stand by my initial point raised by FSA.

kingstreet

What better terms are available to you?

AFAIK they aren't offering deals to IO borrowers at all now?

noddynoo

WTH is a trapped borrower? Yet another term to excuse people who couldn't manage their finances while the rest of us toe the bloody line and get nothing

ogriboy

You would therefore be mistaken. IOM's are still out there because of the ruling I first mentioned. It has to be said though you have to have a sparkling record and a max LTV of 75%. I have spoken to IFA's who also don't know this, even my own but there are some sharp ones who actively seek assistance for there clients on the basis of good sense and past reliability (remember those days?).

I will report back when completed but first I need to establish the catch in the Godiva mortgage offer to replace BO Ireland!!