Bank of Ireland tracker mortgage % increase

in Mortgages & Endowments
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  • I was with the Bank of Ireland until last year on a 5 year fix. They sent me a letter offering to give me a £1000 and waive the redemption fees (£7000) if I moved to another provider. Well I phoned and asked them why and the chap was quite candid in saying they wanted to reduce their business. They obviously want to do the same to these base rate tracker customers.
    I was lucky in that I found a much better rate and had a decent amount of equity to get another mortgage.
    It must be wrong though. Another case of bailed out banks taking the $%^& again.
  • dunstonhdunstonh Forumite
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    Another case of bailed out banks taking the $%^& again.

    A number of the higher risk lenders wanted to de risk their book and offered people who they thought were higher risk of defaulting an incentive to leave. You fell under that and got lucky because you could move it. It could be argued that you have taken some of that bail out money. So, you were quite happy to take a financial gain from the bail out (by the Irish Govt) but accuse them of taking the ... ;)
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • PincherPincher
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    chrisbf1 wrote: »
    I was with the Bank of Ireland until last year on a 5 year fix. They sent me a letter offering to give me a £1000 and waive the redemption fees (£7000) if I moved to another provider. Well I phoned and asked them why and the chap was quite candid in saying they wanted to reduce their business. They obviously want to do the same to these base rate tracker customers.
    I was lucky in that I found a much better rate and had a decent amount of equity to get another mortgage.
    It must be wrong though. Another case of bailed out banks taking the $%^& again.


    "much better rate" compared to the new BoI rates, I presume.

    I think there were lots of offers of discounted redemption to move away back around 2009/10; but nobody ever offered it to me.
    What's wrong with me? That's the problem when you always pay on time, they don't think I'm sub-prime enough. Maybe I need to wear mini-skirts and no undies.

    Regarding mis-selling: that's why you go to court. If it's always clear who is wrong, no one would pay lawyers to argue a point.
    It is of course never the salesman's fault, because they are only supposed to get customers to sign on the dotted line. What's under the bonnet is not their problem. To actually read the contract, they will be knowingly lying, as opposed to just saying what the punter wants to hear.

    I was warning people about endowment mortgages and PPI (aka Lifestyle Protection Insurance) for over 15 years, but there is always one born every minute. Perfectly intelligent university graduates would sign on the dotted line when a school drop-out salesman shows him a growth forecast based on 13% growth.
  • opinions4uopinions4u
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    The chairman of the Treasury Committee has written to financial regulators about Bank of Ireland's plan to raise customers' mortgage tracker rates

    http://www.bbc.co.uk/news/business-21720212
  • I must say that when I joined this Forum I was bitterly disappointed with the responses and as I previously posted the "yah boo sucks to be you" brigade.

    However, I detect a change of wind and a bit more traction in the last few days....Hoorah !!

    I, like many more, have written to BOI and await their response.

    I think the turning point will be their response and whether or not we all (Residential or BTL) get a "Standard" response or there is any difference in responses to what should be, individual complaints.

    I, too, do not have a copy of 6(m).

    Anyway, despite the "naysayers" we seem to have got a ball rolling.......lets keep the energy up.

    Many thanks to all who have posted.

    Rob n
  • edited 10 March 2013 at 9:39PM
    jamesdjamesd Forumite
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    edited 10 March 2013 at 9:39PM
    dunstonh wrote: »
    I cant see how its a mis-sale.
    It's a potential mis-sale issue if a customer asked for a BoE Bank Rate tracker and was sold something with potential not to be without being told about it in advance so they could decide if they wanted to take the risk of a product that may not do what they asked for.

    Same sort of issue as selling a Barclays tracker without warning that it's not a Bank Rate tracker but rather tracks Barclays own rate. It has a notably different risk profile because of Barclay's right to change the rate.

    Sell such a product without telling the customer that it's not tracking what they asked for and the sales firm should be ending up with liability for selling a different product from the one requested.
  • edited 10 March 2013 at 10:32PM
    katariinakatariina Forumite
    1 Post
    edited 10 March 2013 at 10:32PM
    I stumbled into this completely unaware that BOI is going to increase my mortgage payments! Have you all in the same boat been sent a letter??
    As I have not been told by them. Remember when spoke with the BOI staff about the residential tracker in 2006 or 7 when took it - he said it will track BOE rate FOREVER!! period and it was in the terms. About a two years ago they did approach to ask if I wanted to move somewhere else and I replied are you MAD :j. I started with B&W in 2000, so 12 yrs of loyalty...
    Ill have to read all this and see what paperwork I have. just wanted to know if BOI has been in contact.
    Just found a comment in Guardian article that said only affects trackers taken before 2005 so I would be ok. Can somebody confirm if this is their understanding as well?
  • andys15andys15 Forumite
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    Does this apply to the post office mortgage now bank of Ireland. I finished my fixed deal and now pay 1.49% above the boe rate. It does say 1.49 variable but I always assumed the variable bit was the boe rate.
    Debt free. March 2020
    Mortgage free-August 2021
    Planned retirement date- 19/5/2026
    £16000 saved. Target £420000
  • HobbyHobby Forumite
    28 Posts
    andys15 wrote: »
    Does this apply to the post office mortgage now bank of Ireland. I finished my fixed deal and now pay 1.49% above the boe rate. It does say 1.49 variable but I always assumed the variable bit was the boe rate.

    Andy - check out your terms in the loan offer. I think I read somewhere that Post Office mortgages are not affected, however you can be sure that if the BOI get away with their increase , they will look to expand their increases elsewhere too
  • edited 11 March 2013 at 1:25AM
    GREEDYGUTSGREEDYGUTS Forumite
    13 Posts
    edited 11 March 2013 at 1:25AM
    I have little sympathy for those affected by this.

    What have you been doing with all the money you had from the ridiculously low rates you were paying ?
    Wake up to reality.
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