Bank of Ireland tracker mortgage % increase

ILW

cs1800 wrote: »

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.

Why did you not get the agreement checked over before agreeing to it?

jebervic

we had a 3 year fixed BTL mortgage of 5.69 after the 3 years it revereted to a rate of +1.75 % above the the Bof E base rate, our mortgage offer stated " after that the interest rate we charge will track the base rate for the remainder of the mortgage period at a fixed differential of 1.75% above base rate"

one of the conditions also states

"we will only change the tracker rate if base rates changes. This means we have no right to change the differential for the purposes of condition (6m) of our residential mortgage conditions"

if base rate changes then unless condition 6 (i) of our residential mortgage conditions applies, we will always change the tracker rate by the same amount within 30 days.



Can anyone help me with this?

Thrugelmir

cs1800 wrote: »

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.

You received a full set of terms and conditions at the time of the mortgage offer. If you had questions then your solicitor would have explained the terminology.

This clause is no more or less important than the remainder.

armour

disposalist wrote: »

Oi! Those coming here and rubbing salt in the wounds! Wind your necks in, eh?

I'm sure noone thought base rate would stay low for ever, but equally noone thought they'd have to suddenly find double or more their mortgage payments.

Also, perhaps we were on marvellous deals, but being offered those deals is the reason BoI got the business, so to pull the ground out from under on such a spectacular scale is unprecidented and not something anyone should or would be expected to swallow without complaint, no?

I've never heard of anything being to flagrantly mis-sold as a base-rate tracker that changes 100+% when the base-rate is static! Whatever the small print is, this is just financial abuse.

Is it really ok that BoI exploit a contract loophole in order to mitigate against their market mishaps? Whatever is going on in the world, allowing these kind of practices is bad for *everyone*, so be supportive, eh?

If they'd moved the rate to something competitive I wouldn't have minded quite so much. If they'd changed the rate gradually over the next year or more to ease the transition that would have been less barbaric. But, no. It's "find an extra several hundred a month, or else" like some kind of gangsters.

Have some flaming sympathy/empathy/whatever. Sheesh. Not everyone here is a professional landlord, but even those that are do not deserve this treatment.

Well said disposalist. I wish I could thank this twice.
BoI are owned by the (Irish) state. I hope this issue reaches diplomatic levels

PaulF81

armour wrote: »

Well said disposalist. I wish I could thank this twice.
BoI are owned by the (Irish) state. I hope this issue reaches diplomatic levels

One question to all, its an open market, dont like it, remortgage. I wouldnt mind betting this is what they want you to do anyhow if they are whining on about capital reserve ratios.

Wonder_kid

My sympathy to those involved. If you're on a resi tracker, this is a tough call suspect BOI have done their legal due diligence and its legal. If you can, remortgage. BTL investors, well it's business and a fall back always needs to be built in. If you took a very low rate/tracker on interest only and didn't build in a contingency cost with or without independent advice then this is a harsh lesson. No investment is easy

Wonder_kid

My sympathy to those involved. If you're on a resi tracker, this is a tough call suspect BOI have done their legal due diligence and its legal. If you can, remortgage. BTL investors, well it's business and a fall back always needs to be built in. If you took a very low rate/tracker on interest only and didn't build in a contingency cost with or without independent advice then this is a harsh lesson. No investment is easy money and perhaps too many people have invested not really understanding the full implications? See if you can remortgage, take independent advice and consider a sale if the numbers don't stack up long term. Again my sympathy to those involved and good luck. Even professionals can get it wrong and they will spend thousands on advice but they do usually understand the risks and that also that the bank will price the risk accordingly. Easy to see both sides here as on the face of it lifetime should mean lifetime from a customers view, small print wins?

Graham_Devon

Most lifetime products are not lifetime products. Lifetime warranties on cars are a prime example, so many twists and turns in those you need a solicitor just to figure them out. Loads of people fall foul.

Half of it is our fault though, as a collective. Every time we simply fall into the same trap again and again, going for the cheapest product with the biggest lure. We see cars with lifetime warranties and simply lap it up, only to find ourselves dissapointed when they point out we've used the "wrong type" of shampoo on the bodywork or something. With most of these things, the idea is to offer the punter a product they find brilliant and then attach loads of strings to benefit the business.

Symptom of our greed. They don't get away with it in a lot of other countries, simply as the public take a different stance, especially to financial matters. We follow America's path of greed a little too much.

cs1800

ILW wrote: »

Why did you not get the agreement checked over before agreeing to it?

Yes I can see your point but my point is that the information was not made available to me. I am not sure how a lender can expect me to accept terms that they have not presented to me. At the bottom of the agreement it says that I will sign to say I have read mortgage offer, scale of fees notes for mortgage application but nothing about the residential mortgage agreement that included the clause, the reason this was not made available was because it was a buy to let mortgage. Could I have asked for a copy? yes, but you would have thought that as it contained such an important clause it should have been made available to me.
Maybe I am clutching at straws but it seems to me that they should have made the details of this clause known instead of just referring to something that was in another document, one that they failed to give me.

kingstreet

I'd be very nervous if I was a Post Office mortgage borrower or was thinking of becoming one... :eek: