Bank of Ireland tracker mortgage % increase

Thrugelmir

Denise2007 wrote: »

I read through the letters between the Treas Comm and the FSA. Very interesting. I think the Treasury Comm are concerned by the raise but more so that it is setting a precedent for other lenders rather than being concerned about the 13,500 affected. That's only in my opinion.

http://www.parliament.uk/business/committees/committees-a-z/commons-select/treasury-committee/news/martin-wheatley-boi-letter/

Good to see the correspondence published in the public domain.

swardean

Well done to Andrew Tyrie, he doesn't look like he will let the FSA fob him off on this issue.

Their further response will be interesting and potentially scary if it reveals that other providers are looking at something like this.

Thrugelmir

swardean wrote: »

Their further response will be interesting and potentially scary if it reveals that other providers are looking at something like this.

The FSA won't know what other lenders are thinking. Until they reveal their hands. Though other lenders have the luxury of cutting back on the availability of new funding to rebuild their capital positions. So not such an issue. Unless the economy worsens.

ILW

Do other lenders have the same "get out" clause on their trackers?

smiffy

ILW wrote: »

Do other lenders have the same "get out" clause on their trackers?

That's a very good question...

As Bristol & West removed this clause once the FSA started taking ownership on 31st October 2004 hopefully not.

what15myname

Today from HM Treasury re my protest email:
You may be aware that the mortgages impacted were originated before mortgage regulation was introduced in October 2004. However the Financial Services Authority (FSA) has engaged with the firm nonetheless to impress upon them the importance of treating all of their customers fairly. The FSA has concluded that upon reviewing the contract term within the mortgage agreement, enabling the Bank of Ireland to change its tracker differential, it is in their view fair. Ultimately however the courts can decide the fairness of a contract term under the Unfair Terms in Consumer Contracts Regulations 1999.



If you are unhappy, you can follow the Bank’s complaints procedures, and if you are not satisfied with the bank’s response, you may be able to refer your complaint to the Financial Ombudsman Service (FOS). The FOS can be contacted through their website, https://www.financial-ombudsman.org.uk/, or by telephone at 0800 023 4567.

:mad:

BR_Landlord

http://www.parliament.uk/business/co...ey-boi-letter/

Thank You Denise for posting the above link.

Martin Wheatley (Chief Executive FCA): "Separately, the Bank of Ireland UK volunteered to exclude customers from this change where there is evidence suggesting that the customer could have been led to believe the differential was for the "life" or "lifetime" of the product.

I would have thought that was everybody who was not supplied with a copy of the Residential Terms and Conditions , proff of which being the document checklist at end of Mortgage Offer. Any views?

smiffy

Here's a list of some of the mortgages available during June 2004. Most of which have rates set for the term on the product.

Does "term" equal "life" or "lifetime" ???

BR_Landlord

What do BofI consider to be the definitions of "term", "life", "lifetime"?

Anybody could be expected to believe the differential would remain the same throughout the "lifetime" of the product as the product was sold as a Tracker and the concept there is you take a risk on interest rates going up or down with Base as opposed to choosing a fixed rate which you would choose to protect yourself from rises in Base.

I always considered Tracker to be the simplest and most "honest" product where you take the rough with the smooth.

ILW

I would suspect the advert said something like "terms and conditions apply" somewhere.