Bank of Ireland tracker mortgage % increase

lazyjack

shortchanged wrote: »

There are 2 sides to every coin.

Don't forget not everyone have been winners in all this low interest rate saga.

Savers and the more prudent have taken a hammering.

That's a valid point, I'm a saver as such and would welcome better savings rates.

However, imagine if 3 years ago you signed up for a 5 year fixed rate ISA at say, 5%, then you had a letter this week saying they were reducing it to 2%, how would you feel then ? That's not too dissimilar from what BOI are trying to do here.

lazyjack

What I also don't understand is why it has taken BOI 4 years to decide that the rate is too low ?

I said it 4 years ago (even though it helped me at the time) and I still believe the base rate was dropped too low, too quickly. I don't think it really worked as well as expected and didn't really leave any option to reduce it further.

BR_Landlord

B&W Tracker from Offer of Loan dated 2003:

"B) When we are charging you interest at a tracker rate:
(i) unless we change the differential under condition 6 (m) of our Residential Mortgage Conditions, we will only change the tracker if base rate changes;
(iii) we will not change the differential (if any) which applies during any promotional period. After any promotional period, we may change the differential (if any) under condition 6 (m) of our Residential Mortgage Conditions. "

the last page reads:

"I/We have received, read and understood your (1) product brochure for the mortgage described in this offer, (2) Scale of fees leaflet, (3) Notes for Mortgage Applicants (including the General Consent to Transfer Loan, and (4) Guarantor's Guide (if applicable)."

None of these seem to be the Residential Mortgage Conditions which contain the condition 6 (m). I dont remember the 1 or 2, 3 is the Notes which do not cotain 6 (m) and 4 does not seem relevant.

Is any of this the Residential Mortgage Conditions? Has anyone got this document?

leveller2911

plimsolls_on wrote: »

Oh, how I wish I could change lenders, we are not all in that lucky position.... I cannot move as I have still only 10% equity max. and bad credit. BofI did write to me about a year ago (when my rate, like today was 1.35% on a tiny mortgage £80k) and offered to put me on 3 or 4% fixed. It did not say that tracker would disappear and now that offer is no longer open to me... ethical? I think not.

Just out of interest when did you take out your mortgage and how much deposit did you put down?.

Pobinr

BR_Landlord wrote: »

B&W Tracker from Offer of Loan dated 2003:

"B) When we are charging you interest at a tracker rate:
(i) unless we change the differential under condition 6 (m) of our Residential Mortgage Conditions, we will only change the tracker if base rate changes;
(iii) we will not change the differential (if any) which applies during any promotional period. After any promotional period, we may change the differential (if any) under condition 6 (m) of our Residential Mortgage Conditions. "

the last page reads:

"I/We have received, read and understood your (1) product brochure for the mortgage described in this offer, (2) Scale of fees leaflet, (3) Notes for Mortgage Applicants (including the General Consent to Transfer Loan, and (4) Guarantor's Guide (if applicable)."

None of these seem to be the Residential Mortgage Conditions which contain the condition 6 (m). I dont remember the 1 or 2, 3 is the Notes which do not cotain 6 (m) and 4 does not seem relevant.

Is any of this the Residential Mortgage Conditions? Has anyone got this document?

Hi BR landlord.
Are you referring to a BTL mortgage?
We have two B&W BTL trackers taken out in 2001.
The only defiintion of (6m) we've ever seen is in a booklet that accompanied a further advance in 2008.
It says they 'would only change the differential if in our favour'.
So where is there any proof that (6m) ever meant not in our favour ?
No one seems to have been given such a document with their mortgage offer!
People have even asked their solicitors if they have it & none seem to!

smiffy

My residential loan offer states the following:

16. a. This condition applies to product H4BM. From the day we make the loan the interest rate we charge will
track the base rate for the entire mortgage period at a fixed differential of 0.89% above base rate unless we
change the differential under 6(m) of our Residential Mortgage Conditions.

then later of just before the signature

APPLICANTS ACCEPTANCE:
I/We have received, read and understood your (1) product brochure for the mortgage described in this Offer, (2)
Scale of Fees leaflet, (3) Notes for Mortgage Applicants leaflet and agree to the General Consent to transfer in
section 3 or Notes for Further Loan Applicants if this is an Offer of Further Loan, and (4) Guarantor's Guide (if applicable).

I strongly suspect that the document "Residential Mortgage Conditions" wasn't actually issued.

BR_Landlord

Pobinr wrote: »

Just like me & many others it seems you do not have mortgage conditions leaflet for your original advance/s. It rather looks as if B&W never gave them to anyone. So how can BOI now use clauses in a document that the borrowers never received?
An invisible part of a contract is meaningless.

That's my point entirely. I doubt if they can. If those affected can post to say if they have it, then fair enough, then it could be argued as an unfair term as it is not included in the main Offer, (which contains several pages of special conditions). But of no-one has it then I don't think it can be seen as part of the Contract, in which case – BofI will have to back down.

Has anyone got this document?

Pobinr

smiffy wrote: »

I strongly suspect that the document "Residential Mortgage Conditions" wasn't actually issued.

I think you are correct.
Looking at our 'offer of loan' there's a list of docs that makes no mention of the residential terms & conditions booklet.
In which case it seems to me BOI are trying to invoke part of a contract that's never existed. In other words they won't be able to get away with what they are trying to do.

Graham_Devon

leveller2911 wrote: »

[/B]


The words "Banks" and "fair play" rarely go hand in hand, they certainly haven't with regards to savings rates.

Given the recent hoo ha with PPI,Libor fixing etc I would imagine the Banks would have looked into the details of the BTL T&C, and decided it was viable to increase the rates.I really don't think they would be stupid enough to leave themselves open to more legal action not to mention the bad press.

I wish you luck but your probably flogging a dead horse.

BOI have already announced that the FSA has given the go ahead for this.

It's mentioned in this thread, but seemingly no one wants to know.

BR_Landlord

Pobinr wrote: »

Hi BR landlord.
Are you referring to a BTL mortgage?
We have two B&W BTL trackers.
The only defintion of (6m) we've ever seen is in a booklet that accompanied a further advance in 2008.
It says they 'would only change the differential if in our favour'.
So where is there any proof that (6m) ever meant not in our favour ?
No one seems to have been given such a document with their mortgage offer!

Yes a Buy to Let Tracker Mortgage. I too have a Residential Mortgage Conditions A5 leaflet from 2007 (relating to a further loan) but the 6 (m) in that leaflet would not allow them to increase the differential.
I don't have a Residential Mortgage Conditions leaflet with my 2003 Offer. I assumed I had thrown it away.