Bank of Ireland tracker mortgage % increase

The_Hawk

I thought I'd post an update on where I, as a residential mortgagee with Bank of Ireland (Bristol & West), am in fighting this.

As indicated above, I have been "hit" by the Bank of Ireland's decision to terminate my lifetime tracker and replace it with a variable rate, by any other name, mortgage. I am lucky, in that my mortgage is in its latter years and the increase is not huge; I also have some capital that I could use to reduce / pay off the mortgage. Despite this I am not one to take, what I believe to be a complete abuse of what was sold to me as a lifetime tracker, lying down, and so, following the Bank of Ireland's rejection of my complaint, I have submitted a complaint to the Financial Ombudsman Service and I am currently awaiting a response from an adjudicator (and then, probably, an ombudsman). I expect this process to take several months.

In the meantime, I have also being looking at any other potential courses of action. One, that I have spotted, is the European Council Directive on unfair contract terms in consumer contracts, part of which states "A contractual term which has not been individually negotiated shall be regarded as unfair if, contrary to the requirement of good faith, it causes a significant imbalance in the parties' rights and obligations arising under the contract, to the detriment of the consumer."

I understand that I can petition the European Parliament on this basis. Is this a potential line to follow?

pandersturn

the hawk yes maybe , i don't know if you are involved with the class action on property 118 but if you post your question on that forum you could get a view from justin stielig who is co-ordinating the class action.

BR_Landlord

Thanks to Flying Banana – Post 1034

So there would be a very strong case if the Bank of Ireland sent out any additional letter at any time (for any reason) after the initial mortgage was taken out, where the Bank wrote a phrase which promised the differential would stay the same for the duration of the mortgage.

The bank has had its mouth stopped up (estopped) and cannot argue against its promise (promissory estoppel).

(I know how to spell banana, I just don't know when to stop.)

rate_hike

British Landlord.

If you have,nt seen Alan S post on 118

Theres a letter we recieved in sept 2010, when BoI tranfered to BoI UK where it states if the transfer is approved by the high court & your mortgage transfers to BoI UK ,there will be no changes to the administration of your account,or the interest rate you currently pay,the letter is signed by Des Crowley a director of BoI. I,ve Emailed BoI for a copy just incase.

pandersturn

rate_hike wrote: »

British Landlord.

If you have,nt seen Alan S post on 118

Theres a letter we recieved in sept 2010, when BoI tranfered to BoI UK where it states if the transfer is approved by the high court & your mortgage transfers to BoI UK ,there will be no changes to the administration of your account,or the interest rate you currently pay,the letter is signed by Des Crowley a director of BoI. I,ve Emailed BoI for a copy just incase.

does it state the interest you currently pay or does it say your terms and conditions will remain the same.

rate_hike

Pandersturn

Not sure im awaiting reply from BoI for a copy, Alan wrote currently pay thats if he worded as per the letter.

The_Hawk

Quote from the letter:

"We intend to transfer part of our mortgage business to Bank of Ireland UK, and your mortgage will be included within this transfer. If the transfer is approved by the High Court and your mortgage transfers to the Bank of Ireland UK, there will be no changes to the administration of your account, or the interest rate you currently pay."

BR_Landlord

Flying_Banana wrote: »

"Interest Rate (Current Rate: x.xx%):
From the date of this letter until the end of the mortgage term, the interest rate we will charge will be 0.69% above the BOE Base Rate."

FB

You see here the Bank of Ireland promise a fixed differential above Base rate "until the end of the mortgage term". This is the magic wording.

rate_hike

BR Landlord

Is,nt that just the wording for the 1200 that got off ?

BR_Landlord

rate_hike wrote: »

BR Landlord

Is,nt that just the wording for the 1200 that got off ?

Yes, that's WHY they got off.

Basically BofI made a slip up when they wrote the letters and they have to let these lenders return to the rate quoted in the letter (ie the original differential).

However, for everyone else, this does not apply.:(