Bank of Ireland tracker mortgage % increase

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  • edited 11 March 2013 at 1:57PM
    HobbyHobby Forumite
    28 Posts
    edited 11 March 2013 at 1:57PM
    They are a tracker with a clause which in effect says they remain a tracker unless the situation turns into one which is wholly unprecidented and which no-one would have predicted at the time.

    I am not sure its even that. The actual wording of Clause 6(m) Residential Mortgages Condition is ambiguous at best and makes no sense whatsoever at worst.

    Have you actually read 6(m) and 6(o) to (r) in their entirety, If not read them and see what you think.
  • HobbyHobby Forumite
    28 Posts
    Unfortunately quite a few posters on here have said that they can't afford the increase.

    Oh have they, ok fair enough , but as a perecntage of those that have not , its probably quite small.
  • Hobby wrote: »
    No one wants your sympathy and no one has complained that they cant afford the increase.

    Its a simple matter of legality.

    Simple it is not, the likelihood of overturning this rate change is zero.
    They can as was in your contract do this at any time.
  • I really don't understand how they can be allowed to do this! The Bank of England is keeping to base-rate low in an attempt to get the economy moving - but if Banks can just change their rates anyway what is the point?!

    We are really going to struggle with our mortgage, especially when it gets to the second increase in October!!
  • HobbyHobby Forumite
    28 Posts
    GREEDYGUTS wrote: »
    Simple it is not, the likelihood of overturning this rate change is zero.
    They can as was in your contract do this at any time.

    It is not in my contract. There is some unclear wording contained within a Residential Mortgage clause that makes no sense.

    If its this wording that you think allows the BOI to increase my mortgage rate then you are totally wrong.

    If its some other reason then do let us all know.

    I suspect you really don't have a clue
  • edited 11 March 2013 at 2:38PM
    GREEDYGUTSGREEDYGUTS Forumite
    13 Posts
    edited 11 March 2013 at 2:38PM
    Hobby wrote: »
    It is not in my contract. There is some unclear wording contained within a Residential Mortgage clause that makes no sense.

    If its this wording that you think allows the BOI to increase my mortgage rate then you are totally wrong.

    If its some other reason then do let us all know.

    I suspect you really don't have a clue

    Ok the bank have just said lets increase the rate and see if we can get away with it ?

    Are you seriously thinking this is what they have done
  • From my perspective I do feel I have been mi-sold this mortgage as I initially agreed to take a 3 year fixed rate mortgage (around 6%) at a higher interest rate to then have my 1.75% after the initial 3 year contract. Had it been clear to me that they could increase the interest rate once my 3 year fixed term was up I would not have agreed to this mortgage. I had set money aside to pay the larger interest for 3 years as I expected to have the 1.75% for the following 20 odd years.

    In addition to this, I have yet to receive any formal notification from the Bank of Ireland, I only came across an article on the BBC website over the weekend.
  • alleycat`alleycat` Forumite
    1.8K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    ✭✭✭
    GREEDYGUTS wrote: »
    Ok the bank have just said lets increase the rate and see if we can get away with it ?

    Are you seriously thinking this is what they have done

    Actually Barclays tried something very similar and then backed down from it.

    They did make a mistake that although they were using the term "barclays base rate" they actually stated in the KFI/KFD that Barclays Base rate should be treated as the BOE base rate.

    It was also advertised as such on their website.
    They tried to claim it wasn't but the "waybackmachine" put them very firmly back in their box.

    I've no doubt that there will be a few more "stunts"like this pulled with varying degrees of success.
  • Since my last postings here I tried to find out if I could get another mortgage elsewhere and the first thing I discovered is that as I am self-employed (since October 2012 and have not yet filed accounts), I am not eligible for most mortgages. This is something that - if I had known that the BOI was going to do hike the rate with the differential - I would have sorted out before becoming self employed. I certainly wouldn't have stayed with a mortgage lender that changes the rules at will. So that means that even if I do find a mortgage lender that will give me a mortgage because I cannot prove yet my income, I would probably get a really disadvantageous rate anyway. So effectively for someone like me I am stuck with the BOI mortage.

    If I understand correctly from all I read and listened to so far, the grounds on which there are more chances of a redress can be summarised as:

    - Unfair Contract Terms legislation - people have to be given a reasonable amount of time to change their arrangements and although the BOI terms say that they have to give one month’s notice and they have given two months’ notice, in this market it is not enough to allow people time to think about what they want to do and change. There is a strong case for arguing that at the very least they give more notice.

    - There is a case for mis-selling. Is this really a life time tracker or do I have to keep checking for this to be true. Really the Terms and Conditions should be made much more clear and have it in big print rather than small print. In the small print of most mortgages, lenders effectively give themselves the right to do pretty much whatever they like but of course they have to act fairly. But it is very difficult for the average consumer to make a judgement whether something like this is actually fair. The conditions in the BOI mortgage say 'your loan agreement has a special condition which allows us to change the tracker differential for a various number of reasons including the fact that Banks have to hold more capital reserves and the fact that funding mortgages has increased.' It is very difficult for the average consumer to actually understand whether those terms have been breached.

    Please keep posting information here if you find it. MANY THANKS to all that are contributing with useful information.
  • HobbyHobby Forumite
    28 Posts
    GREEDYGUTS wrote: »
    Ok the bank have just said lets increase the rate and see if we can get away with it ?

    Are you seriously thinking this is what they have done

    You have not answered any of my questions , so I assume you just don't have any idea at all what the clauses say.

    Has it ever crossed your mind that banks do not behave with integrity. If they all did , why would some of them be fined by the FSA and made to pay compensation.

    Post a note to yourself in big letters PPI.....you may have heard about them.

    Read the Clause 6(m) and 6(o) to (r) and then let us all know what you think.
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