Bank of Ireland tracker mortgage % increase

brit1234

squeezybottle wrote: »

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!!

Its very simple, the cost of borrowing for BOI is far higher than the BOE rate of 0.5%. The bank is in trouble and it wants rid of its bad loans to survive.

Solution either move to another lender or stay and pay the higher rates.

dktreesea

Are the BOI tracker mortgages lifetime trackers? If yes, then surely they have to keep doing what it says on the bottle so to speak? I would think if the words lifetime tracker are even in the letter offering the mortgage, notwithstanding they may not be in the fine print, that the BOI would have to leave those particular mortgages alone.

What kind of tracker product have they got whereby they can increase the gap between the base rate and the interest rate whenever and however they like?

lazyjack

brit1234 wrote: »

Its very simple, the cost of borrowing for BOI is far higher than the BOE rate of 0.5%

If that's the case how are other lenders managing to honour their tracker mortgages at even lower rates than BOI ?

marathonic

lazyjack wrote: »

If that's the case how are other lenders managing to honour their tracker mortgages at even lower rates than BOI ?

They're not managing very well. Other products are having to subsidise the trackers - which are making a loss.

Any trackers currently being honoured fall under two categories:

• There is no get-out clause in the contract so the bank has no option BUT to track the base rate;
• There is a get-out clause but the bank, so far, are choosing not to apply it due to possible public perception

Banks will tend to become less worried about public perception regarding removal of tracker rates as more and more other banks do the same. Therefore, if I were with another bank, I'd read my terms and conditions very carefully and, if I saw a potential get-out clause, I'd overpay as much as possible for now.

There will be complaints about this to the bank, FOS, etc.

However, I believe the bank will win in the end so, if your LTV allows you, I'd remortgage ASAP.

kingstreet

BoI is effectively closed to new business, so it really doesn't have any concerns about its image with UK borrowers. Its "beard," Post Office Mortgages is a front for BoI (UK) Ltd, a separate company.

msfender

http://www.guardian.co.uk/money/2013/mar/02/bank-of-ireland-mortgage-rates-double-triple

The last paragraph begs the question what is different in this case?

msfender

A new development!

http://www.mortgagesolutions.co.uk/mortgage-solutions/news/2254100/bank-of-ireland-customers-offered-gbp1-000-to-leave-lender

smiffy

This might be useful if you've not written your complaint yet.

Money Advice Service info that may help you when considering and putting together your complaint case with the firm: https://www.moneyadviceservice.org.uk/files/final-making-a-complaint---june-2011.pdf

pandersturn

whats the new development

Thrugelmir

pandersturn wrote: »

whats the new development

Speculators feel cheated.

A mortgage broker who has seven buy-to-let mortgages with the Bank of Ireland has spoken out against the lender, saying she feels ‘cheated’ by its actions.