Bank of Ireland tracker mortgage % increase

BR_Landlord

well yes, as in any Contract. In this situation the B of I have told the Chief Executive of the FCA that it will voluntarily exclude customers (from the raise in differential) who were not aware of the clause (buried in the T & Cs) which allowed them to

smiffy

ILW wrote: »

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

This is the footer text from the web pages.

* Lines open 8.30am - 6.00pm Monday to Friday, 10.00am - 1.00pm Saturday. Your call may be monitored and recorded for training purposes.

YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER LOAN SECURED ON IT. WE MAY REQUIRE SECURITY OVER YOUR HOME (THIS DOES NOT APPLY TO BUY TO LET MORTGAGES)

Mortgages are subject to status and valuation. Written quotations available on request. Borrowers must be 18 or over unless otherwise stated.

Bristol & West plc is regulated and authorised by the Financial Services Authority.

Regulated Investment Products - Bristol & West pic advises on only the Life Assurance, Pensions and Investment Products of Zurich Financial Management Marketing Group.

Bristol & West plc followsThe Bankng Code, The Mortgage Code and, as a member of the General Insurance Standards Council, follows the GISC General Insurance Code for Private Customers. Copies of the Codes are available on request.


http://www.tracker-rate-hike.co.uk/wp-content/uploads/2013/04/footertext.png

BR_Landlord

Smiffy, I see that you are gathering evidence in a broad field but I think we can rely on what the BofI stated to the FCA and which has been copied to the Treasury. I wonder if the way forward is to screw the Bof I down to the "voluntary" promise they made to the Chief of the FCA – could they renege on their promise to him? he has put it in writing to the Treasury what they said.

The Bank volunteered to exclude customers who thought the differential was for life. I think we should look at what evidence can support this.

It looks like BofI have opened a tiny loophole in order to seem to be good guys and we should open it wide!

Thrugelmir

ILW wrote: »

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

All mortgage contracts have an exceptional circumstances clause. Which empowers the lender. Nothing new in this. Both Skipton BS and Norwich & Peterborough BS used this when effecting an interest rate change on their mortgage holders.

BR_Landlord

The Bank of Ireland had a meeting with Martin Wheatley (Chief Executive of the Financial Conduct Authority, previously FSA) and showed him the Terms and Conditions document relating to two old Mortgage products from pre 2004. As such they were "unprotected". They had a look and agreed that the terms were fair. The Chief Executive and the Bank of Ireland shook hands warmly and BofI set off back to their offices having had their increase in differential rubber stamped. They included this in their leaflet and sent out the leaflet and letter to 13,500 mortgage customers.

In the meeting they said (according to MW) they had excluded all customers whose mortgage offers "did not include the condition" that allowed them to increase the differential. They could not have done otherwise. "Separately" writes Mr Wheatley, "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*. (my emphasis)

Bank of Ireland must have felt confident about the second exception. However, this forum demonstrated in the first couple of weeks after the letters had gone out, that many people had not been sent the "Residential Mortgage Conditions" document which contains the clause in question. I doubt whether the Bank of Ireland was aware, at that point, that this document had not been included in the paperwork, and that significantly, it was not listed in the documents received in the Offer which was signed against.

I very much doubt if Martin Wheatley (FCA) is aware of this. It may or may not have any relevance, but then BofI made that statement* and it is worth thinking about.

I don't believe there to be a case based on unfair Contract terms, but the fact that the T&Cs were not part of the document list received can perhaps SUGGEST (which is all that is required) that customers believed the differential would be for the lifetime of the product.

B of I could deny the statement, MW has already given his word to the Treasury.

brit1234

BR_Landlord wrote: »

The Bank of Ireland had a meeting with Martin Wheatley (Chief Executive of the Financial Conduct Authority, previously FSA)

Pretty pointless as its not in the FSA remit to deal with buy to let. Its a commercial loan not residential. The FSA have no powers over BOI on this and have already stated what BOI had done was fair.

Thrugelmir

BR_Landlord wrote: »

However, this forum demonstrated in the first couple of weeks after the letters had gone out, that many people had not been sent the "Residential Mortgage Conditions" document which contains the clause in question.

If the posters in question have taken out BTL mortgages these terms would not have been applicable.

Makes you wonder if BOI have targeted a specific part of their mortgage book in taking the action they have.

BR_Landlord

Thrugelmir wrote: »

If the posters in question have taken out BTL mortgages these terms would not have been applicable.

Makes you wonder if BOI have targeted a specific part of their mortgage book in taking the action they have.

Ah well , there we have it. A Buy to Let mortgage product with a 6 page Offer, with 5 pages typed up on an old Remington by the look of it, where the killer clause is referred to but not within the Offer or any paperwork. That clause being in Residential Mortgage Conditions.

The title of the T & Cs is probably not relevant but could explain why we didnt receive it.

Thrug – why do you say "if the posters....taken out BTL mortgages these terms would not have been applicable? because if you are correct then they CANT increase the differential on the BTL mortgages.

Is this some sort of industry standard rule or your opinion?

Of course we have been targeted, I'm bewildered you didn't get that. Our products were the only ones they could try it with.

Thrugelmir

BR_Landlord wrote: »

Is this some sort of industry standard rule or your opinion?

There'll be fundamental differences between the contract terms and conditions of a residential and BTL mortgage. Why would you expect anything else?

Not least that the BTL mortgage allows a LL to let the property.

BR_Landlord

brit1234 wrote: »

Pretty pointless as its not in the FSA remit to deal with buy to let. Its a commercial loan not residential. The FSA have no powers over BOI on this and have already stated what BOI had done was fair.

I get that. But nevertheless the Bank of Ireland took the trouble to have a meeting with FSA(FCA) to have the move rubber stamped, and the FCA are quoted as saying "we will continue to ensure Bank of Ireland UK treats those customers who have been impacted by the change, fairly."

I think other posts have explained the FSA/FCA cant just ignore what Banks are getting up to even if certain products fall outside their remit. George Osborne's intention for setting up a separate Financial Conduct Authority (FCA) was to regulate the conduct of every authorised financial firm providing services to customers, setting standards for large firms including high street banks and insurance firms, and responsible for both conduct and prudential standards for the rest of the financial services sector.