Bank of Ireland tracker mortgage % increase

Graham_Devon

Mr_Carbohydrate wrote: »

I have paid rates as high as 8% on my tracker. You seem to be suggesting that customers should take the rough with the smooth over the long term but not banks? Odd for a forum on MSE. A calculated business risk should NOT include the other party changing the T&Cs (OK, exploiting loopholes, whatever).

They haven't changed the T&C's. The clause was always there.

What I'm saying is, BOI is pretty much bust. They have to do this to keep on serving their customers. That includes you.

Trying to force more costs on them will only hurt their customers even more.

Basically BOI don't want your business any longer. They were greedy like other banks, didn't expect rates to ever get this low, and now they find themselves all but bust. They are hoping you will re-mortgage. If you can't do that, then you are stuck, unfortunately. Adding unnecesary costs just makes the situation worse, and for those who are stuck and can't remortgage, may see the costs of your game (if done on a grand scale as many propose) passed to them.

It's either passed to remaining customers or the taxpayers.

Thrugelmir

Mr_Carbohydrate wrote: »

I have paid rates as high as 8% on my tracker. You seem to be suggesting that customers should take the rough with the smooth over the long term but not banks? Odd for a forum on MSE. A calculated business risk should NOT include the other party changing the T&Cs (OK, exploiting loopholes, whatever).

Financial basics. How do banks fund the money they lend you?

Beej_1973

Mr_Carbohydrate wrote: »

Like most affected, I'm here not to whinge but because I believe generally you achieve more acting together than you do alone. As such, I've been truly astonished at the insidious nature of some posts - from "savers" (who, let's face it have more likely inherited the family home than built and sold a business) to "investors" jealous of the low rates enjoyed by others - seriously people, take a look at yourselves. Why would you even be on MSE, if you think a corporation flagrantly abusing it's customers is in any way justifiable? Even if there's no winnable case, I'm still interested in policies to maximise cost, inconvenience and public opprobrium for BoI. Or will I just roll over and let BoI tickle my tummy, will I?

Great comment, and I totally agree with everything you have said

chucknorris

To those of you who have had the BOI shock letter, you have my sympathy.

But I have to say a few years ago when all the fuss was about collars on trackers. I immediately checked through my mortgage offers (there weren't any collars) but I did note the 'exceptional circumstances' etc clauses which I too may be hit with at some point in the future. Although there wasn’t anything as specific as a clause that allows the margin (differential as they call it) to be adjusted, that I would have found alarming and been wary of it.

Surely when all the fuss was going on about collars on tracker mortgages a few years ago you would have checked your mortgage terms and conditions?

I won’t like it if it hits me, it will cost me over 20k a year if my rate went up to 4.5% (23k at 5% etc.). But I can understand it, the lender does this to protect themselves so that they can offer good deals that are cut down to the bone. If they had to leave enough profit in the product to cover every eventuality, the deals would not have been so good in the first place.

pables

Our mortgage with bio has gone from fixed 5.79 for 5 years and has been reduced by £13! By being reduced to 4.45. Problem with title deeds on purchase and bio only use their own solicitors and have charged us over £11,500 to sort and popped previous vendors debt back in our name on deeds. Fed up with bio big time, our mortgage now way more than when we started 5 yrs ago, no sympathy or help from bio. Not our fav mortgage co and no idea how we can get rid of them persistently adding charges to our balance that we have paid religiously every month other than hand keys back and give up.

pables

Had severe problems dealing with bio, been thru SRA, legal ombud, FSA none have been able to help. Bio have communicated thru their own solicicitors and billed us thousands to sort title deed problem on purchase 5 years ago. We have been helpful to rectify probs and they bill us. We have quiewed our legal standing with free organisations eg SRA, they bill us. No documentation or warning, mortgage now stands at way more than we started as they keep billig us, cant ask for invoices or reasons as they just bill us again. Only way to get rid of them continually billing us is to hand back keys and make us homeless, not missed a payment but hey HP

brit1234

Beej_1973 wrote: »

If your happy for people to renage on contracts on you....good luck......

Not particularly, I have just had my pension retrospectively torn up, as well as my wages and promotion. The difference is you have had 4 years at record low interest rates at the expense of savers like myself.

You did do the right thing of overpaying during these years or reducing your rents in parallel with the interest rate drop didn't you?

I still say if you don't like it move, the low interest rates would give you years to boast the equity.

cs1800

interestingthought wrote: »

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.

You need to read the thread and understand what the BOI - this thread is not about people saying they think 4.99% is an unfair rate what we are saying is our rate should be base plus the differential we agreed to.

Mr_Carbohydrate

Thrugelmir wrote: »

Financial basics. How do banks fund the money they lend you?

Capitalism basics. The Wealth of Nations. Honouring contracts. Trust is fundamental to a healthy capitalist system. Think this engenders that? And this will not fix BoI's balance sheet. It's blatant opportunism. Tolerate it only if you're content to be next.

My main point though was that the almost gloating "told you so" nature of even senior posters on a pro-consumer, pro-collective action website beggars belief.

cs1800

Mr_Carbohydrate wrote: »

I have paid rates as high as 8% on my tracker. You seem to be suggesting that customers should take the rough with the smooth over the long term but not banks? Odd for a forum on MSE. A calculated business risk should NOT include the other party changing the T&Cs (OK, exploiting loopholes, whatever).

Yes you make a very good point because you have previously paid 8% on your tracker it is ok for the BOI to rip me off. Thanks for pointing that out.