Bank of Ireland tracker mortgage % increase

12467113

Replies

  • ThrugelmirThrugelmir Forumite
    86.1K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭✭
    Basically if they can use increased capital reserves as a justification for tearing up mortgage agreements then all lenders could do the same. That has to be stopped.

    Has been previously done by both Skipton BS and Norwich & Peterborough BS.
    Real insurance claim quote : -

    "Going to work at 7am this morning I drove out of my drive straight into a bus. The bus was 5 minutes early.".
  • owitemisermusaowitemisermusa Forumite
    951 Posts
    Part of the Furniture Combo Breaker
    ✭✭✭
    Thrugelmir wrote: »
    Has been previously done by both Skipton BS and Norwich & Peterborough BS.

    What was the final outcome?
    Thanks.
    Tough times never last longer than tough people.
  • Same position as all above. Why only parts of the mortgage? It is outrageous tht they can change the rules so easily. Will certainly complain. Can they put it up to 20%?
  • marathonicmarathonic Forumite
    1.8K Posts
    Ninth Anniversary 1,000 Posts Combo Breaker
    ✭✭✭
    I think that the bank have a very good case and complaints are unlikely to be upheld.

    If I were in the same position, the question I'd be more interested in getting an answer to would be:

    If, on the basis of this increase notification, I remortgage to a HSBC tracker of Base Rate + 1.88%, and the forthcoming complaints are upheld, what are the chances of me receiving compensation having remortgaged to another company?

    With the answers to the above question, you could decide whether it's worthwhile to remortgage whilst an investigation into the complaints is underway.

    Also, I'd be looking to start a remortgage application ASAP, even before getting answers to the above question. I'd choose a fee-free option if possible. This way, you have the approval in place, which lasts 3-6 months and can remortgage pretty much immediately if you find that complaints are not upheld.
  • ThrugelmirThrugelmir Forumite
    86.1K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭✭
    What was the final outcome?
    Thanks.

    Although one was threatened against the Skipton. No challenge was mounted. Not least that the Skipton was in dire financial trouble if hadn't of raised rates and the FSA would have been advised of the change prior to the public announcement.
    Real insurance claim quote : -

    "Going to work at 7am this morning I drove out of my drive straight into a bus. The bus was 5 minutes early.".
  • Not happy about this change - even joined the forum to express this.
    My "lifetime" tracker flex mortgage is going to jump from 1.19% to 4.49% that's nearly 4x as much.

    Even if it is a "special circumstance" it is still more than the current market rate. This just seems a way to ditch the customers they are not making any money on.

    For those who can't find their conditions; here is an extract from the conditions for the B&W Flex mortgage 2001 - Edition 2:
    Condition 6(m):
    Unless otherwise provided in the offer, we may change the differential (if any) at any time by giving you not less than 30 days written notice. Conditions 69(o) to 6(r) apply to any change in the differential which we make under this condition 6(m).

    Condition 6 (p) Before the end of any protected period, we will only increase a positive differential or reduce a negative differential:
    (i) if we believe that the increase or reduction is necessary to maintain the viability of our business following a serious adverse change in market conditions or in the relationship between the base rate and the rate which we pay on the funds we raise for use in our mortgage lending business;

    It is the conditions 6(m) and 6(p.i) which I think that they are using to increase the differential. Though the letter is not very clear about how or why.
    I would have thought that if it was "necessary to maintain the viability" of their business - it would mean they were in financial difficulty - but their website says they are not and that their "UK mortgage business is healthy"!

    I would have thought that even if they are legally able to do this - there may be grounds for miss selling of these not-so "lifetime" tracker mortgages.

    I agree with others here we need to work together to change or stop this, not just take it lying down. The more of us that complain to them the FOS, or the media the more expensive and embarrassing it is for them.

    Twitter: @talktoBOI #BOIscandel
  • ThrugelmirThrugelmir Forumite
    86.1K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭✭
    bluecross wrote: »
    I agree with others here we need to work together to change or stop this, not just take it lying down. The more of us that complain to them the FOS, or the media the more expensive and embarrassing it is for them.


    The entire Irish banking system is effectively nationalised. So the you are witnessing another lender taking further steps in pulling out of the UK lending market. After already having sold a big slug of their mortgage book to the Nationwide. Who promptly raised the interest rate.

    This is more than likely the first stages of getting further mortgages into a position to sell on.
    Real insurance claim quote : -

    "Going to work at 7am this morning I drove out of my drive straight into a bus. The bus was 5 minutes early.".
  • I've started with a Bristol&West and latter on came BoI. On a same property I have interest of !.5% and another loan ( remortgage) of 2.25%. From the 1May both are going up to 2.99% and from Octobar 4.49% which is 3X more than now. I spoke to their representative and she told me that they have permmision to do that and there is not much that can be done. This is really slap in the face. Capitalism in a worse possible way. However, I still think that somebody will stop them. this doesn't make sense.
  • I, too, am affected by this bombshell increase.

    I have Googled: Office Of Fair Trading What Is Unfair, and am encouraged that the Bank will fail because they have not acted in 'good faith' and the 'plain language' requirement has not been fulfilled.

    The document that the Bank seems to rely on is the Residential Mortgage Conditions that is referred to in the Offer Of Loan. I have the Offer Of Loan, but I do not have a copy of the Residential Mortgage Conditions, so I am having to check whether my solicitor, from 2003, has it in their files.

    I phoned the Bank of Ireland today and they have promised to send me a copy within 5 days. I have to wonder why it is not published on their website?

    I will make a written complaint to the bank, to the FSA and to my MP.

    As soon as the Bank takes the extra interest I will issue Small Claim and force them to Court.

    Mark
  • edited 28 February 2013 at 1:10AM
    opinions4uopinions4u
    19.4K Posts
    ✭✭✭✭✭
    edited 28 February 2013 at 1:10AM
    Skipton building society changed their tracker related margins three years ago. The FOS and FSA sided with them because the lender's right to do this was in the Key Facts document issued at the time of mortgage sale.

    Halifax varied the tracker element of their SVR at the end of 2008. Because it wasn't in the Key Facts (it was only in the T&Cs) the FOS and FSA didn't like it. Although never tested in court Halifax refunded £500m+ in interest. The may have won in court, as the T&Cs are the legal contract. We'll never know as they didn't have the stomach for a fight.

    BOI have little commercial gain to make from protecting their reputation. They have no desire to rebuild their business. It's goosed.

    We have a few categories of customer here.

    - buy to let ... ombudsman, regulator and court may view landlords as commercially savvy people who should be expected to read and understand the T&Cs.

    - pre-regulation in 2004 ... there may have to be an acceptance that the T&Cs issued at the time cover it off.

    - post-regulation ... if it's in the Key Facts document, I think you'll lose at the FOS or in court. If it isn't, I think you'll win at the FOS, although courts are more likely to consider the legal contract to be the important document. So you may lose in court.

    That's why I suggest the FOS before going legal.
This discussion has been closed.
Latest MSE News and Guides

Alexa, tell me some top tips

How can this Forumite maximise their smart speaker?

Join the Forum discussion

State pension shortfalls for women

MPs call it a 'shameful shambles'

MSE News