Bank of Ireland tracker mortgage % increase

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  • I think the lack of sympathy comes because these people are on a variable rate, and as such should be aware that this rate can go up.
    The Bank of England base rate came down pretty dramatically quickly. Fair enough not all in one go, but still quickly. It could, at least theoretically, go back up just as quickly. People on a variable rate need to be aware of this and need to protect themselves against it. That's the main reason why I'm on a fixed rate.
    Being on a fixed rate, I am aware that I have been paying more than someone on an old tracker for the last few years. But that was my choice, because I didn't want my rate to go up.
    The other point is that I believe the rate that the BoI are talking about is only in line with what the rates were like when these people took out these mortgages. If they could afford them then then you would imagine they can afford them now.


    I think you are confused, or haven't understood fully. What BofI are doing is setting the new differential at a rate that is comparable to other fixed rates with the BofE rate at an historical low, not a normal rate. Therefore 4.99% plus BofE 0.5% is now our BASE rate and can only rise from here. If and when the BofE rate goes somewhere near normal (5% normal?) then my rate will be 9.99%, when I signed up for a possible max of 6% (ish)
  • Graham_DevonGraham_Devon Forumite
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    I think you are confused, or haven't understood fully. What BofI are doing is setting the new differential at a rate that is comparable to other fixed rates with the BofE rate at an historical low, not a normal rate. Therefore 4.99% plus BofE 0.5% is now our BASE rate and can only rise from here. If and when the BofE rate goes somewhere near normal (5% normal?) then my rate will be 9.99%, when I signed up for a possible max of 6% (ish)

    Firstly there is no max interest rate.

    Secondly, they can decrease the differential too.

    You could move aswell. I will agree with you on one thing, BOI should not be charging to end the product, though I'm sure a phone call will sort that out. Afterall, they want you gone.
  • HobbyHobby Forumite
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    There has been mention on here that the BTL mortgages are not regulated by the FSA. If this is the case then the FSA can not help - HOWEVER as the BOI are using the special condition hidden amongst the Residential Mortgage Conditions then maybe the FSA will have to become involved. Maybe this is why the BOI refer to the FSA being aware of the change in their booklet that accompanies the dreaded letter. Just a thought , but worth bearing in mind.
  • JimmyTheWigJimmyTheWig Forumite
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    I think you are confused, or haven't understood fully. What BofI are doing is setting the new differential at a rate that is comparable to other fixed rates with the BofE rate at an historical low, not a normal rate. Therefore 4.99% plus BofE 0.5% is now our BASE rate and can only rise from here. If and when the BofE rate goes somewhere near normal (5% normal?) then my rate will be 9.99%, when I signed up for a possible max of 6% (ish)
    I'd certainly like to think that if the base rate returned to normal levels then the differential would return to normal levels.
    If not, they'd be losing customers hand over fist.
  • socratessocrates Forumite
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    Hobby wrote: »
    There has been mention on here that the BTL mortgages are not regulated by the FSA. If this is the case then the FSA can not help - HOWEVER as the BOI are using the special condition hidden amongst the Residential Mortgage Conditions then maybe the FSA will have to become involved. Maybe this is why the BOI refer to the FSA being aware of the change in their booklet that accompanies the dreaded letter. Just a thought , but worth bearing in mind.

    The reason they quote the FSA is that it hoodwinks people into thinking it's all official


    I believe if you approach the FSA they will know nothing about it

    Just like HSBC when they quoted the FSA to me and when I contacted them they said they do not have anything to do with BTL mortgages
  • leveller2911leveller2911
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    Funny how "Re-Wired" thanks all your posts but doesn't post anything themselves


    Re-wired is a bit of an enigma, they never post on threads but press the "Thanks" button regularly.

    I think they may well be similar the King Arthur , people think they are dead but in fact they are lying dormant and will rise again when England needs them.

    You may even find Re-wired thanks your posts in time but he is wary of newbies....;)
  • ThrugelmirThrugelmir Forumite
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    Ray Boulger, the most respected mortgage expert in the UK, tells me that many, if not all, lenders have buried deep in the small print "exceptional circumstances" clauses which, among other things, allow them to demand you repay your mortgage, in its entirety, at a month's notice.

    Respected? Sorry the guy has a vested interest in selling mortgages! Too many gaffs to be a financial expert.
    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.".
  • ThrugelmirThrugelmir Forumite
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    Funny how "Re-Wired" thanks all your posts but doesn't post anything themselves

    Nothing to hide. I don't care whether I get thanked or not. :money:
    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.".
  • ThrugelmirThrugelmir Forumite
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    Hobby wrote: »
    There has been mention on here that the BTL mortgages are not regulated by the FSA. If this is the case then the FSA can not help

    FSA regulates lenders not products. A BTL is similar to a commercial loan. In that as you are running a business. You are deemed knowledge and responsible enough to make a decision yourself and require advice or protection. If you were in doubt in any way you would have sought proper professional advice before entering the contract.
    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.".
  • ThrugelmirThrugelmir Forumite
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    I think you are confused, or haven't understood fully. What BofI are doing is setting the new differential at a rate that is comparable to other fixed rates with the BofE rate at an historical low, not a normal rate. Therefore 4.99% plus BofE 0.5% is now our BASE rate and can only rise from here. If and when the BofE rate goes somewhere near normal (5% normal?) then my rate will be 9.99%, when I signed up for a possible max of 6% (ish)

    I doubt BOI will maintain the differential in the longer term when rates return to normal levels.
    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.".
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