Old ING Direct Flexible Mortgage - Barclays takeover

rrwfotr

Hi,

I've got an Old ING Direct Flexible Mortgage that tracks 0.9% above the boe base rate for the life of the mortgage.


I've contacted ING who have feedback that Barclays have currently said they will honour all previous agreements. But reading the documents they have sent today it states that within two years I may be moved onto a Barclays equivalent product.


Am I missing something could they move me to a higher paying product in the future?

Thrugelmir

In answer to what I believe your question is. Yes, Barclays can impose new terms. Providing they are reasonable on the context of commercial grounds. There's little you can do.

dunamis

I too have the same product and the letter also states: "If you believe that you may be adversely affected by the transfer you have the right to object to the transfer and attend the Court hearing for approval of the transfer. You can write to us even if you are not going to appear at the hearing and we will ensure that you objections are raised at the Court hearing".
I'd imagine we are almost certain to be adversely affected by the transfer as I can't see Barclays moving our mortgages to a BoE + 0.9% tracker so it sounds like we can object to the transfer...time to find out some details on this.

opinions4u

It is highly unlikely that they will change your mortgage rate.

They need to have exceptional reason to do it even if your T&CS allow.

Unlike Skipton Building Society, who would have gone bust if they hadn't used their exceptional circumstances clause, the ING mortgage book will be a tiny part of Barclays' assets.

You'll keep your good rate.

Thrugelmir

opinions4u wrote: »

Unlike Skipton Building Society, who would have gone bust if they hadn't used their exceptional circumstances clause, the ING mortgage book will be a tiny part of Barclays' assets.

You'll keep your good rate.

The Nationwide revised interest terms on mortgages bought from Bank of Ireland.

At base plus .9%. The mortgages will be loss making. So argument on commercial grounds alone to revise upwards.

opinions4u

The Bank of Ireland SVR cap had a clear expiry date.

Tracker for life rates will prove far more difficult to vary. The regulator will hit them hard unless they can show a clear threat to the survival of their business.

The size of the book is so small it cannot pose such a threat.

That said, Skipton Building Society is the example of a firm applying an "exceptional circumstances clause".

http://www.skipton.co.uk/mortgages/svr/

6. Is Skipton allowed to remove the ceiling?
Yes. If your mortgage documentation states that the SVR ceiling applies then it also clearly states that, in exceptional circumstances, the Society can remove the ceiling by giving you not less than 30 days' notice of our intention to do so.

Thrugelmir

opinions4u wrote: »

Tracker for life rates will prove far more difficult to vary. The regulator will hit them hard unless they can show a clear threat to the survival of their business.

In no way am I saying it will happen. However given the weakness of the banks balance sheets and the fact that they are still well short of the capital requirements of Basle 3 (2018 full implementation). Difficult to see regulators coming down hard. If banks address the issue of loss making business. Providing any change is not excessive.

cos_2

I expect the 0.9% above base rate to stay according to my understanding of the letter. 'Equivalent', legally, means 'of the same value', and my contract with ING is 0.9% above base rate for the life of the mortgage.

However, it would do no harm to write to the court expressing concern, and asking that this issue is explicitly dealt with. Now, where's my hand cut goose quill . . . ?

Majic

I'm in the same boat guys, how do we write a letter to the court, is there an address etc? standard procedure to follow?

Thrugelmir

cos wrote: »

However, it would do no harm to write to the court expressing concern, and asking that this issue is explicitly dealt with.

Your mortgage contract (which you signed and agreed to), has an exceptional circumstances clause. This is what Barclays will invoke if they wish to amend rates on any products.

SX633

Not if we can stop it happening. If enough of us object to the transfer as stated in the letter. What we need is someone to draft a standard letter.