Bank of Ireland tracker mortgage % increase

in Mortgages & Endowments
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  • ThrugelmirThrugelmir Forumite
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    This time you are way off Thrug. The letter from Bank of Ireland makes it quite clear that when the Bank of England Base rate increases, then their new differential will remain and the % will track at the higher level.

    .

    How is this worded?
    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.".
  • cs1800 wrote: »

    I was not supplied with a copy of the Residential agreement at the time, I have asked BOI to supply me with a copy to see what this clause says. I am starting to believe it is no more that a 2 line cause and as it was to fundamental to the agreement I am amazed B&W did not include it in the text of my T&C, I am also starting to wonder why BOI didnt quote it in the letter telling me the differential was going up - you would have thought if there was justification in the cause they would have been more than happy to quote it, but we will have to see what they come back with.

    They did not quote the Condition in the letter, nor in the 8 page leaflet they had printed to explain the raised differential. This omission struck me as VERY ODD. They have tried to gloss over the clause and we are on forums trying to track down not only the products affected but also the Terms and Conditons. This is hardly best practice. What do you think Thrug?
  • Thrugelmir wrote: »
    How is this worded?

    "Please note: If the Bank of England's Base rate changes this will result in a further change to the interest rate charged on your mortgage."
  • ThrugelmirThrugelmir Forumite
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    "Please note: If the Bank of England's Base rate changes this will result in a further change to the interest rate charged on your mortgage."

    Standard wording. So wouldn't regard this as absolute . Average SVR in the market is around 5% now. Once base rate normalises then lenders will reduce differential to a lower level. No one forecast base rate to be so low for so long. With no immediate sign of increasing.
    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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    They did not quote the Condition in the letter, nor in the 8 page leaflet they had printed to explain the raised differential. This omission struck me as VERY ODD. They have tried to gloss over the clause and we are on forums trying to track down not only the products affected but also the Terms and Conditons. This is hardly best practice. What do you think Thrug?

    BOI will be reliant on a special conditions or special circumstances clause buried somewhere in the mortgage contract. The clause will all encompassing and not specific. A clause such as this effectively gives them carte blanche to act as they wish. Legally there's no challenge against the contract itself. As complies with the law.

    Accepting the fact that the BOI is in financial trouble. So a rise of some kind was envitable. My question would be is the extent of the rise justified. As is a significant hike in a short time frame. Giving people little time to adjust.
    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.".
  • If they and/or the ombudsman agrees with you on this, what do you hope to happen to you personally?
    Do you realise that where mis-selling happens all that you end up with is being put back in the position you were in if the mis-selling hadn't have happened?
    Do you think that you would be better off, now, if you had chosen a different mortgage?


    If they follow your request then I think this will get you in serious trouble.

    Yes, because I would have picked another mortgage linked to the Bank of England base rate. At that timethere were loads around, strangely you cant find one now
  • brit1234 wrote: »
    So its either:
    1. Stick with BOI on the low 4.99% rate and no fees.
    2. Sell your buy to let if you can't afford to keep it.
    There's not much more you can do, the bank has the legal justification to raise the rates.



    You have been complying with the rest of the mortgage conditions of having a parallel investment fund to pay off the mortgage when the interest only ends?


    4000+ quotes, clearly you have nothing to do that be bitter that you never bought a buy to let property. Maybe the answer is to get off your !!!!, and do something rather than to pick fault with a serious issue of mis selling.......Its some bad case of jealousy, when you take the side of a bank with no integrity.

    To anyone else who does care about being ripped, off, there is nothing to lose by fighting it, and a lot to lose if you don't........
  • smiffysmiffy Forumite
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    cs1800 wrote: »
    I have condition 6(m) it refers to conditions 69(o) to 69 (r) do you know what they are please.

    Here ya go - I've uploaded a scanned copy of the 2001 document.

    http://www.great-bentley.co.uk/bank-of-ireland-mortgage/residential-mortgage-conditions-2001/

    In the later version of this document the differential can only be changed in a way that is beneficial to the customer. It appears that only some products sold pre 2004 had this 6(m) clause.

    Yet they were all marketed as 0.xx% for term.

    http://www.great-bentley.co.uk/bank-of-ireland-mortgage/bristol-west-available-mortgages-in-2004/
  • Thanks Smiffy and thanks Thrug.
  • Looks from the .pdf document like the BoI have covered themselves in terms of svr rates, base rate linkages, variation of differentials and just about every conceivable eventuality. :(

    That seems to imply that legally they are in the clear with their hike.

    There are two questions I would like to have answers to, and they won't be easy to get:
    1) is the BoI's assertion truthful that they are doing this in order to fulfil the Treasury's increased capital requirement on banks,
    2) Is it equitable that homeowners and BTL mortgagees are being treated differently - the former having the hike applied in two stages?

    One thing we can hope to achieve if we persist in publicising this sorry state of affairs is to discredit the BoI and devalue its status in the mortgage marketplace.
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