Bank of Ireland tracker mortgage % increase

BR_Landlord

It seems to me a clutch of Mortgage Offers went out around 10 years ago which had a Condition in the T & C which the B of I is using to raise the differential. Many other Offers over the last 10 years did NOT have this Condition and these borrowers remain unaffected. My further advance of 2007 does NOT have this Condition in the T & Cs and the differential is not changed for that part of the loan.

That means the B of I is targeting SOME of its Tracker customers, but not all. Could this be the legal case? There is no precedent as such, merely the Bank hunting around to find loopholes.

250F

250F wrote: »

My BTL mortgage was on 23/5/2008, Product RE6, 5yr fixed 6.25% (so they've made shed loads off me!) then reverts to base rate + 1.75%.

There was no Key Facts documentat with my documentation but I do have the Mortgage Conditions 2008, England & Wales (Edition One).
Definitions 4, condition 10 - 'Unless we change the differential (if any) under condition 4(14), we will not change the Tracker Rate unless the Base Rate changes.

Definitions 4, condition 14 - 'We may reduce a Positive Differential (% which we add to the Base Rate) or increase a Negative Differential at our discretion by giving you written notice. This means that we can change the Differential in a way that is favourable to you'

I am planning on calling BoI tomorrow to confirm whether they don't have another sneaky clause to screw me over with, however at the moment I am hoping that I will still be able to finally enjoy a lower base + 1.75% from 31/5/13 for the life of the mortgage.

So I called BoI on 0800 345 7512, TWICE! , twice as the 1st person came across as dismissive and not helpful whilst the 2nd was more helpfull. The bottom line is they confirmed the same thing - fortunately for me, I will be keeping my differential at 1.75% when my fix rate ends on 31/5/13.

My advice is to call BoI a couple of times, speak to different people, supply your mortgage account number and hope for the best.

So it seems that my Mortgage Conditions 2008 (edition 1) with the text I quoted above means they can't wriggle out of this.

chucknorris

hightable wrote: »

I like this but gambling debt at the ring are not enforceable. They are an agreement between gentlemen. Have the BOI acted in such a way? You may be hard nosed and I have seen bookies do a runner but most act with honour unlike others.

He chose the scenario not me. I merely demonstrated how exceptional circumstances can make what appears at first to be unfair, can in fact be fair and reasonable using the exact same scenario that he used to show how unfair that it was.

Beej_1973

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

Well Said......A agree

ILW

Beej_1973 wrote: »

Well Said......A agree

I would suspect that the Irish government are probably more concerned with their own taxpayers and voters than a few thousand primarily English BTL investors.

Bobilar

Hello all

I’m sure I am not the only person with a tracker (residential, not with Bank of Ireland) mortgage who feels a little nervous after this news.

After furiously reading forums and news stories it seems pertinent that these changes have been applied to mortgages taken before 2004, the same year the regulatory requirement for a Key Facts Illustration came in.

Here’s a story about the Manchester Building Society’s move last year, which also targeted mortgages taken out in 2004 or earlier:

(can't post links, it's a news story on MSE)

I’m thinking that banks are targeting mortgages from before the advent of Key Facts Illustrations because they know that if a clause isn’t mentioned clearly in this document then they are going to have a very hard time enforcing it.
This story mentions precedent from 2008:

(Can't post links, its a telegraph story)

The relevant text:

“Brokers said other companies might have similar clauses written into their contracts. However, Mr Boulger said customers should check their mortgage offer documents very carefully, especially if they were advised about changes to their SVR or tracker. He said that if your mortgage company wanted to invoke a clause in your contract it should be in the "key facts illustration" (KFI), not in the general small print of the mortgage contract.

If it is not in the KFI, Mr Boulger said, there is precedent that the change will not be allowed. Halifax had a "collar" on its mortgages that meant it could stop its tracker mortgages falling in line with Bank Rate once it hit 2.75pc. However, mention of the collar had been dropped from the key facts document for Halifax mortgages in 2004. The Financial Services Authority (FSA) said that although collars and floors could be legitimate, they needed to be "clear and unambiguous".

Jon Pain, the FSA's then director of retail markets, said in 2008: "While tracker interest rate floors can be a legitimate term of a mortgage, it can only be if it is clear and unambiguous to the consumer and is consistently and prominently spelt out in the initial key facts document and offer document throughout the sales process."”

I would be very interested in hearing confirmation, insights or opinions about this.

BR_Landlord

Has anyone got anything different than this?:

6 INTEREST

Charging interest at a tracker rate

(j) Unless we change the differential (if any) under condition 6 (n), we will not change the tracker rate unless the base rate changes.

(m) in condition 6 (n):
– a “positive differential” means a percentage which we add to the base rate to arrive at the tracker rate; and a “negative differential” means a percentage which we subtract from the base rate to arrive at the tracker rate.

(n) We may reduce a positive differential or increase a negative differential at our discretion by giving you not less than seven days written notice. This means that we can change the differential in a way that is favourable to you.

sammyjammy

DIVADIVA wrote: »

I am in the same situation. I am also annoyed that they do not let you know how much the new mortage repayment will be monthly until 10 days before is due to be taken out. Leaving us not much time to change it if we wanted to. If anyone has any new info would you post it here?

Can you not work that out yourself?

interestingthought

I really don’t understand the fuss..

These customers that this has affected were paying a fraction of what was considered as 'average' this customer’s were on 2.25% if not less. The average rate is 4-5% with all banks and buildings societies.

As far as i can see this is nothing but fair, especially for the BTL customers who are the ones that are no doubt making money on letting their properties out.

Unfortunately you don’t get something for nothing in this world, and if the majority of people are paying 4-5% on their mortgages it should be fair that everyone else does to. Not just the 'lucky' ones who have managed to undercut the banks.

eddystone_2

Well it would appear that all the btl brigade in the rush for more money did not take the time to read the small print and now you come here bleating,easy money at the time but it comes at a price and now you can pay so no sympathy from me especially if it will help get house prices down and give the youngsters the chance of somewhere to live,and yes i am a babyboomer and my daughter rents from a slumlord.