Bank of Ireland tracker mortgage % increase

chucknorris

ILW wrote: »

Nothing new though, I remember being thankful when my mortgage hit single figures.

Not with a base rate of only 5% though, that's why it won't happen.

ALIBOBSY

I think some people are being a bit harsh here, many people would have taken out mortgages a few years ago when the economic climate and the way the banks sold to us and how we, the public perceived them. Like it or not most people didn't and still don't read every bit of the "small print" and often even if it does get read its unclear and difficult to understand. It is not unreasonable to assume any product with "lifetime" in the title runs on the same basis without any major change for its lifetime.

I think the best approach regarding this is to take the line, not that this was miss sold, but to emphasize the lifetime element and to say you believe the banks actions are in breach of the banking code. Many people don't know the banking code which was a volunteer code, has actually been enshrined in law. So banks have a LEGAL obligation to abide by the code, which clearly states banks have an obligation to treat their customer fairly-this is in fact the main thrust of the code and whilst they can argue about terms and conditions if their actions are unfair this over rides everything else.

I can also see the point that if your interest rate was so low wouldn't it have been better to make higher payments and reduce the capital owed (therefore increasing equity), but its always easier to be wise after the fact so to speak. Good luck to all those in this position especially those who are facing being out on the street.

I also think someone in the bank dropped a clanger, as just like the old saying where "if you put a frog in boiling water he jumps out, but if you put him in cold and let is come to temp slowly he sits and boils", they should have put the rates up gradually over a period. Sort of a phased increase and there would have been less of an issue.

Good Luck
Ali x

ILW

Most of these mortgages are BTL.
BTL is a business.
Business people either understand small print or employ someone to understand it for them.
Some sympathy for those with residential mortgages though.

shortchanged_2

plimsolls_on wrote: »

in the meantime, my tenant will bear the brunt as I will have to raise the rent to cover my costs as I cannot sell at the mo in Norfolk.

It's really not that simple though is it.

If your mortgage has gone up by say £150 a month do you think your tenant will just roll over and take an extra £150 a month on their rent up the tailpipe. Because I know myself and 99.9% of the population wouldn't.

Rents are driven by the market and your rent is likely then to be far too expensive for the area you are in.

ILW

shortchanged wrote: »

It's really not that simple though is it.

If your mortgage has gone up by say £150 a month do you think your tenant will just roll over and take an extra £150 a month on their rent up the tailpipe. Because I know myself and 99.9% of the population wouldn't.

Rents are driven by the market and your rent is likely then to be far too expensive for the area you are in.

If the tenant would have paid another £150 per month, they would already be paying it.

lazyjack

For those people defending the bank here, please confirm what you would expect if you were sold a 'Lifetime Tracker Mortgage'.

I'm on a lifetime tracker, not with BOI fortunately, but when I signed up around 5 years ago I was definitely given the impression that it would follow the base rate, up or down, for the duration (lifetime) of the mortgage.

I took a chance (the rates weren't so low then) and have had a good run I admit. It could have been quite different though. If the base rate had gone up, it would have been tough luck on me. What no-one could have really seen coming would be an increase of 3% in a matter of a few weeks.

MacMickster

A number of people are talking about having had these mortgages for years - from well before 2009 when the base rate plummeted to its current rate. What have they been doing with the wholly unexpected windfall for the last 4 years? What would they have done if rates had gone up several per cent then instead of falling?

Regardless of whether they should have read the terms and conditions of their mortgage, or were genuinely mis-sold, if they can't afford to pay an interest rate that is way below the historical average for a mortgage then they probably should never have had a mortgage in the first place.

For those with residential mortgages, there are some cracking long-term fixed rate deals out there at the moment. Take the opportunity to snap one up.

For the buy to letters out there, if your business model (you did have one didn't you?) was based upon paying stupidly low interest rates forever, then you should never have gone into a business in the first place.

PaulF81

chalkie99 wrote: »

One of the oddest threads on MSE :huh:

OP joins up today and is followed with undue haste by lots of other names who also joined today. Seems strange, especially on the Loans section rather than the Mortgage forum.

I guess people don't know about the 80's when rates doubled in a very short time and reached 15%

People didnt have mortgages as large back then, as the boomers hadnt had chance to eat their young by that stage.

shortchanged_2

lazyjack wrote: »

For those people defending the bank here, please confirm what you would expect if you were sold a 'Lifetime Tracker Mortgage'.

I'm on a lifetime tracker, not with BOI fortunately, but when I signed up around 5 years ago I was definitely given the impression that it would follow the base rate, up or down, for the duration (lifetime) of the mortgage.

I took a chance (the rates weren't so low then) and have had a good run I admit. It could have been quite different though. If the base rate had gone up, it would have been tough luck on me. What no-one could have really seen coming would be an increase of 3% in a matter of a few weeks.

I won't be defending the banks because I do think this is very wrong. It basically makes a mockery out of a contract, i.e they are not worth the piece of paper they are written on.

However I don't have huge sympathy for some people who are saying that a rate of 4.49 is going to break them because that is just ridiculous as they have seriously not planned their finances at all. 4.49% on a mortgage rate is not high and anyone who has ever taken a mortgage out should be able to afford this level of interest rate.

cs1800

Here is where I think the BOI may have a problem I have just read through my mortgage offer from 2003 they do indeed state that the differential can change in line with their residential clause 6(m) but it gives no mention of what that clause is and they do not mention a copy of the residential mortgage agreement being made available. So I signed and accepted a clause that I knew no details of. You could argue that I would be stupid to do that but you could also argue that B&W being a responsible lender should have made that information available. I would also contend that as it is such an important clause rather than just referring to it a 6(m) they should have included the full text in the offer. its also interesting to see that the rate was 4.5% but that is not going to stop me contending this as I think it is sharp practice.