Bank of Ireland tracker mortgage % increase

lazyjack

lazyjack wrote: »

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

OK, seeing as nobody could answer this, I'll try another question. How many people even knew this sort of clause existed on tracker mortgages (answer honestly if you can) ?

I certainly didn't and I don't recall ever reading anything to suggest there was. I'm not a mortgage expert but I did a fair amount of research before switching to a tracker and none of the articles I read mentioned it.

What I don't understand is people coming on here, seemingly quite smug, as if everyone should have known better.

Beej_1973

brit1234 wrote: »

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.

Based on what you have said, it appears that you are happy for people to renege on your contracts or agreements. Perhaps if you stood up for what is right, rather than being accepting then this would not happen.

I am not one of the ones that said they cannot afford it, I accept that I am on a great rate, partly due to the research I did before securing my mortgage. Incidently I will still be on a fairly good rate after the new rate takes effect. The new rate is in line with what I was paying when I first took the mortgage out, but then the BOE base rate was 3.5%...... My point is that I took a Base rate +1% tracker out, and strangely thats what I expect to get.

And your right, i did not over pay, why would i do this when I get a greater interest rate in my savings account. this would be madness, nor have I reduced the rent, again this would be madness.

However, had I set up an agreement with my tenants that their rent would track my mortgage payments, then your dam right I would have reduced their rent...... because unlike the Bank or Ireland I do have business ethics

And if your worried about your savings, instead of just relying on the bank, who will turn you over as soon as look at you, why don't you get a buy to let mortgage, and start renting a property out, you will find that you could get 20-40%return on your money each year.......far higher than the banks ever paid, even when the rates were at their highest

smiffy

I've been interviewed by Guardian Money (should be in Saturdays Paper), & the BBC Money Box program (again Saturdays broadcast) to express my disgust at this hidden clause.

Hopefully increased publicity will help the 13,500 affected customers challenge this unfair contract and sly move by BOI.

kanimisso99

I heard the news, came to this thread, naturally expecting a harsh tone against BOI here. I instead found battles between newbies who appear to be the genuene holders of the affected mortgage, and a strange circle of people who nag those newbies and always thanking among each other.

By any standards of common sense, reasonability and morality, I beieve BOIs decision was bad and I think it's really worth taking as many cases as possible to the ombudsman. If other banks started to follow suits this country will be a really immoral place to live.

However, those mysterious people blame the affected by saying completely odd things, like their rate was too good so should accept higher rate, it was a gamble, if they reclaim other customers or taxpayers will suffer (and thanking each other).

Surely they are not just jealous of the low rate, but must have some more reason to direct the course of the discussion in their preferred way.

Or is my common sense wrong? We at least all know that banking industry is the one whose moral standards are completely lacking...

Thrugelmir

kanimisso99 wrote: »

Or is my common sense wrong? We at least all know that banking industry is the one whose moral standards are completely lacking...

Executive management of the major banks has changed since the crisis of 2007/08. So the same old accusations can no longer be made. The new management has though to address the issues that exist. Within the extensive and complex framework that exists for the regulation of the banks.

Would your solution be that those borrowers already on higher rates pay even more to subsidise those on very low trackers. Is that moral? Are people more interested in their own pockets than anything else. Perhaps the departed bankers are are a mirror image of society we've become. Bankers are after all just ordinary people.

cs1800

lazyjack wrote: »

OK, seeing as nobody could answer this, I'll try another question. How many people even knew this sort of clause existed on tracker mortgages (answer honestly if you can) ?

I certainly didn't and I don't recall ever reading anything to suggest there was. I'm not a mortgage expert but I did a fair amount of research before switching to a tracker and none of the articles I read mentioned it.

What I don't understand is people coming on here, seemingly quite smug, as if everyone should have known better.

The thing I still cant get my head round is that in my T&C they refer to clause 6(m) of their residential mortgage. The clause is just a couple of lines say they could change the differential in extreme circumstances. They should have put the full text of the clause as it so important or stated that they were providing a copy of the residential agreement that is referred to, they did neither.

brit1234

Mr_Carbohydrate wrote: »

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.

Sorry we haven't been a capitalist country for the last 20 years. If we did have a capitalist economy then gambling banks and property speculators wouldn't be bailed out by tax payers and savers.

Capitalize the profits and socialize the loses isn't capitalism.

As for BOI they are on their last legs due to rapid expansion/greed during the Irish and UK property bubble, they are burnt. As an Irish bank it is not supported by the BOE, funds are tight and their cost of borrowing is thus higher which has to be passed onto the borrowers?

If you don't like it swap to a British bank taking cash from the funding for lending scheme.

armour

kanimisso99 wrote: »

I heard the news, came to this thread, naturally expecting a harsh tone against BOI here. I instead found battles between newbies who appear to be the genuene holders of the affected mortgage, and a strange circle of people who nag those newbies and always thanking among each other.

By any standards of common sense, reasonability and morality, I beieve BOIs decision was bad and I think it's really worth taking as many cases as possible to the ombudsman. If other banks started to follow suits this country will be a really immoral place to live.

However, those mysterious people blame the affected by saying completely odd things, like their rate was too good so should accept higher rate, it was a gamble, if they reclaim other customers or taxpayers will suffer (and thanking each other).

Surely they are not just jealous of the low rate, but must have some more reason to direct the course of the discussion in their preferred way.

Or is my common sense wrong? We at least all know that banking industry is the one whose moral standards are completely lacking...

Come on then you "strange circle of people", is it jelousy or do you have a more personal reason?

hightable

I would like someone to explain funding over time. My degree in Natural Sciences did not. I did not check the small print and in fact only 2 sub accounts out of 16 seem to have been effected. I was introduced to the B&W through a FA. I asked, when products dropped out of fixed rates, what the new rates were. I was never told that it would be anything other than 1.75 or 1.85 > BOE. I will re-state that it is a trust issue and this behavior undermines this. I also suggest that other lenders may take this as a cue to raise other products. Oh well back to the physics and wave particle duality. At least they know they do not know what they are.

smiffy

This story has made the front page of the Guardian Money weekend paper today - here the online version.

http://www.guardian.co.uk/money/2013/mar/02/bank-of-ireland-mortgage-rates-double-triple

They don't seem to have their comment article online, but that's worth a read too.