Bank of Ireland tracker mortgage % increase

Silent_Dancer

The BTL mortgagers do not have any comeback. The contract is viewed as a commercial one and the FSA and FOS will not be interested.

As regards the residential customers I'm not sure here there is any comeback as from the FSA webpage on unfair terms.

The Regulations do not apply to terms that:

• set the price or define the product or service being supplied – these clauses are “core terms” of the contract and are exempt from the test of fairness as long as they meet the plain language requirement

Still probably worth a complaint to the FOS.

rckl88

ILW wrote: »

If you are running a business, you do not rely on "what appeared".

I've gathered... false advertising like unlimited broadband for example. I'm just saying some things should be as it says in the description(the word unlimited to me means without limits but to businesses it means attract clients then screw them later).
I'm not great with english but come on!!

plimsolls_on

JimmyTheWig wrote: »

Possibly a case for mis-selling.
The question would be, what would you have done in 2001 if you hadn't been mis-sold this mortgage?
Presumably you would have got a different mortgage with a different provider.
Presumably that would have been a slightly higher rate to start with (hence why you chose your mortgage in the first place) but would now not be facing these hikes.

Get your calculator out. Work out the difference (either more or less) you would have paid if you had gone for the second best mortgage at the time. Work out what you would be paying now on that mortgage. If you come out worse off then I think you've got a case.

I'm not convinced that you will come out worse off having been on a very good rate for years. But it is worth checking if you feel hard done by.


I don't see how you took out a mortgage in 2001 and are now in negative equity.
You must have paid off around a third of the balance in that time.
And prices have risen by a third in that time.

Oh, I see a few more details here would answer questions, I bought flat as primary residence whilst I was working abroad as a project manager and the mortgage was only 2 x my salary (£80k mortgage).. 95% LTV. then what happened? builder went bust, did not finish the development, nobody else bought and nobody would live in my flat as it was a building site and local estate agents valued it at half what I had paid. So I paid twice the price for a flat I couldn't sue anyone cos the developer did a runner with his partner in prison. I have been in negative equity since I bought, more or less. It has been valued at £80k today, and I paid £90k in 1999, and was on a 2 year fix that came to an end in 2001, when I switched to tracker.

Have been on interest only for years since I stopped working full time due to chronic illness.....

paulus_the_woodland_gnome

Welsh_woman wrote: »

Agree with points of cs1800 absolutely. A rate rise at the whim of a lender is far more unpredictable and could have greater financial impact than a BOE rate rise - which I believe has never risen at such a rate in one jump. Therefore it is the banks responsibility to ensure this 'special condition' is fully understood and that all documents relating to it are shared with the customer, not hidden or briefly referred to in small print. In addition, it would be natural to understand that a FIXED differential tracker rate is indeed FIXED. If it isn't , then it is variable . Therefore it is misleading, unfair and not transparent to state FIXED in the terms and conditions.

according to BOI they have the rights under the 'special conditions' to raise the rates again. Surely there should be regulation to protect customers.

Well said.I have several BoI mortgages . Fortunately I don't think I am affected but it would have caused a lot of financial stress if my mortgages were to rise so sharply over such a short period.
Now I am well aware that I that the BoE rate will rise again however that is not likely to be this year or even next and on that basis I have committed a large chunk of my profit for the next year towards refurbishment of one of my properties. There are other more minor upgrades planned. the point of doing this now is because I know I am an accidental beneficiary of the low BoE rate and I realize that the average repayment rate is between 5 and 6 % as I am sure we all do.At some point in the near-ish future I will be paying that again. All the more reason to spend now reinvesting in my stock .

What I mean is that I am planning for a rate rise based on the best information I have at hand

Who reasonably could have for-seen any of this ? Nobody.

plimsolls_on

noddynoo wrote: »

You cannot charge the tenant more! :eek:

Oh Bless! I agree, but I kept her rent at same level for 3 years since the interest rate went 0.5% as I am on tracker and just covering my costs (some landlords are nice!), so a phased 20% increase over 9 months is my likely course of action.

Neverland

Bank of Ireland, being a failed now nationalised Irish Bank just want out of the UK

They tried carrots, i think they even wrote to some borrowers offering them 0,000s to move their loans

So now I guess they are trying sticks

More interestingly I bet there are a lot of other banks (and building societies like Nationwide) watching to see if they get away with it...

...if BoI do the rest will do the same

paulus_the_woodland_gnome

[More interestingly I bet there are a lot of other banks (and building societies like Nationwide) watching to see if they get away with it...

...if BoI do the rest will do the same)



I agree ... this is a bad day not only for BoI customers

puregeordie

Its not a bad day for all. Can I assume that savers would gain because of this. Also I think other banks would not follow suite in england, otherwise that would open up a big tin of worms!:eek:

BR_Landlord

I too noted the deliberate and evasive lack of supporting documentation regarding the relevant legal clauses that they referred to in the letter. BUT HEY! Bank of Ireland charge £15 for sending out a copy of the original Terms and Conditions of your mortgage offer, so you will have to pay to check it out. I think they call that adding injury to insult.

BR_Landlord

sorry my post related to comments earlier