Bank of Ireland: How to jump ship?

GMS

hallaway wrote: »

When I took my mortgage out, I expected to pay the rate I have been paying - not more. Why? Because that's how mortgages are supposed to work - not because the banks screwed up and now we're being held responsible. The Bank of England rates have not risen...there is no earthly reason for doing this until the BoE rates have risen.

However, thank you for the advice and for the 'welcome'. I'll be back!

You are on Standard Variable Rate (SVR) which is not linked in any way to BofE rates. Lenders can amend the rate as and when they choose (unless there is a link to another rate in the terms)

It has varied as can happen. You paid what you were contrated to pay and are still contracted to. Sorry if you don't like it but the terms were there and you agreed to them

If you wanted to base your rate on BofE rates then you should have chosen a product with a revert rate linked to it.

hallaway

GMS wrote: »

You are on Standard Variable Rate (SVR) which is not linked in any way to BofE rates. Lenders can amend the rate as and when they choose (unless there is a link to another rate in the terms)

It has varied as can happen. You paid what you were contrated to pay and are still contracted to. Sorry if you don't like it but the terms were there and you agreed to them

If you wanted to base your rate on BofE rates then you should have chosen a product with a revert rate linked to it.

Agreed - but then, a bank should not be bragging that it has kept its rates at the same percentage because the BofE rates have remained the same - do you not agree? It leads people, apparently people like me, to believe that they are linked and that the bank cares enough about you to realise things are not going well in the financial arena and they're not going to pass non-issues your way unnecessarily. That's the reason we stayed with Bank of Ireland...it made us think that it cared about us.

Obviously, I was duped. That still doesn't make it right - no matter how much you all are trying to make me feel like it's all my fault, I know it is actually the Bank of Ireland that is the bandit in this old country tale. In this day and age, who can afford to buy a house outright? You need mortgages; everyone does. I'm happy to pay my fair share, and what is agreed. I don't agree to the percentage hike and I want to switch that part of my mortgage. This should be possible...and if it isn't, why not? (This is more of an overall societal question, obviously.)

Good advice - on my situation, and the situation of 150,000 people in Britain - is greatly appreciated.

_Andy_

hallaway wrote: »

When I took my mortgage out, I expected to pay the rate I have been paying - not more. Why? Because that's how mortgages are supposed to work - not because the banks screwed up and now we're being held responsible. The Bank of England rates have not risen...there is no earthly reason for doing this until the BoE rates have risen.

However, thank you for the advice and for the 'welcome'. I'll be back!

Banks don't obtain mortgage funding at BOE base rates.

Frogfish

hallaway wrote: »

When I took my mortgage out, I expected to pay the rate I have been paying - not more. Why? Because that's how mortgages are supposed to work - not because the banks screwed up and now we're being held responsible.

This is how mortgages work - if you take out a fixed rate. Did you go through a broker? If not, please do this time.

ILW

hallaway wrote: »

Agreed - but then, a bank should not be bragging that it has kept its rates at the same percentage because the BofE rates have remained the same - do you not agree? It leads people, apparently people like me, to believe that they are linked and that the bank cares enough about you to realise things are not going well in the financial arena and they're not going to pass non-issues your way unnecessarily. That's the reason we stayed with Bank of Ireland...it made us think that it cared about us.

Obviously, I was duped. That still doesn't make it right - no matter how much you all are trying to make me feel like it's all my fault, I know it is actually the Bank of Ireland that is the bandit in this old country tale. In this day and age, who can afford to buy a house outright? You need mortgages; everyone does. I'm happy to pay my fair share, and what is agreed. I don't agree to the percentage hike and I want to switch that part of my mortgage. This should be possible...and if it isn't, why not? (This is more of an overall societal question, obviously.)

Good advice - on my situation, and the situation of 150,000 people in Britain - is greatly appreciated.

Should have got a tracker if that is what you wanted.

Thrugelmir

hallaway wrote: »

Tru dat, as they say. However, a policy of reducing the deficit as rapidly as possible always means the worst for responsible borrowers. My in-laws were screwed by this back then...guess it's our turn now!

The Bank of Ireland is based in Eire so has nothing to do with the UK deficit reduction.

Blame those Irish property speculators for the problem you face.

DecoSparkle

To all those saying "you should have got a fixed or tracker if that's what you wanted"-please bear in mind some of us had no choice. My fixed rate ended and I went onto SVR just as the market dipped and I lost the equity in my home meaning my ltv wasn't good enough to get a fixed or tracker once they stopped doing 100% mortgages. I didn't choose to be on SVR and I also don't think the argument of "you've had it better than us now you have to suffer too" is very constructive - in fact it's very petty.

ILW

DecoSparkle wrote: »

To all those saying "you should have got a fixed or tracker if that's what you wanted"-please bear in mind some of us had no choice. My fixed rate ended and I went onto SVR just as the market dipped and I lost the equity in my home meaning my ltv wasn't good enough to get a fixed or tracker once they stopped doing 100% mortgages. I didn't choose to be on SVR and I also don't think the argument of "you've had it better than us now you have to suffer too" is very constructive - in fact it's very petty.

You are not suffering, 4% is peanuts and if you did not allow for around 8% you were foolish and irresponsible.

Thrugelmir

DecoSparkle wrote: »

I didn't choose to be on SVR and I also don't think the argument of "you've had it better than us now you have to suffer too" is very constructive - in fact it's very petty.

Interest rates have fallen. So a great opportunity to repay debt.

I suspect that rates have a little way to rise yet before normalising. Something nearer 5% - 8% in 6 years time.

The_J

Yes, I am also sick of people bashing those on a variable rate. You should not expect your SVR to increase outside of a base rate increase. Bank of Ireland shouldn't have dropped their SVR by as much (it was actually capped above base until this month, hence the earliest possible opportunity they have raised it). Smugness is not an admirable quality.

It is certainly not the current Government's fault, cutting the deficit (money we don't have) fast is very important to stop higher interest rates in the future. If you voted for Labour, especially in the later years, then really you have no-one to blame but yourself. Not saving money in the good times, encouraging a housing boom, financial mismanagement at a traitorous level (pension pot raiding and gold selling) are all their fault. Remember many of the current Labour shadow cabinet were involved in the Treasury at the time (under Gordon Brown).

I'm not saying the Tories are better, they are far too left leaning, liberal sympathisers for my liking but they are a better bet than Labour by a long shot.

Get the booklet if you can, it's not particularly useful. More important is to find out when the exit fees apply to and what they are.

edit: Rates will never be 8% again. You think any Government would survive that?