Bank of Ireland tracker mortgage % increase

james_toney

Graham_Devon wrote: »

I don't mean to sound harsh here, but what would you have done with base rates at 3%+ which woiuld have put you in the same position?

I find it bizzare that people are saying this will ruin them, when even at 4.99% it's still lower than the average interest rate over the last few decades?

Too many people never take into consideration things like this Graham, i am sure my friend is with the BOI i will ask him about it tomorrow.

it is not fair though really,

Wales4ever

Thats the gamble people took, they track the base rate. If base rate goes up they pay more if it goes down they pay less.
Now BOI are moving the goal posts.
This has got to be mis selling ! what reasonable person would have taken out such a mortgage if they knew the bank would be able to rise the differential.

JimmyTheWig

Wales4ever wrote: »

This has got to be mis selling !

I agree.
So people should be put in the position they would have been in had they not been mis-sold.
Looks like they have benefitted from a very good interest rate for some time and are now free to move elsewhere to the best they can get.
So not sure that anything is owed for the mis-selling.

jobdone1

Wales4ever wrote: »

Thats the gamble people took, they track the base rate. If base rate goes up they pay more if it goes down they pay less.
Now BOI are moving the goal posts.
This has got to be mis selling ! what reasonable person would have taken out such a mortgage if they knew the bank would be able to rise the differential.

If people think that the rate of say .89% is going to remain at that rate for the life of mortgage and decided to borrow 5 to 7 times their salary because the mortgage will only cost say £300 then rates rise buy a couple of percent if goes up a coupe of hundred quid and becomes non affordable are clearly not looking to future possible rates.

You have to be realistic about what you can afford should rates rise a few percent.

plimsolls_on

Oh, I am in the Bank of Ireland boat stuck up a creek with no paddle....

My rate will increase from 1.35% to 4.49% and because I am insolvent (though never missed a payment) and in negative equity, I will not be able to shop around for a new mortgage... OOooops

I will write to BofI in the first instance and then Ombudsmen, I already wrote into Watchdog yesterday. Now I know from the Guardian that it is only 13,500 of us affected, against 161,000 mortgages it inherited from Bristol & West, surely we can't be shoring up the bank's capital reserve? :question:

I took mine out 2001 and no problems till now!

jobdone1

plimsolls_on wrote: »

Oh, I am in the Bank of Ireland boat stuck up a creek with no paddle....

My rate will increase from 1.35% to 4.49% and because I am insolvent (though never missed a payment) and in negative equity, I will not be able to shop around for a new mortgage... OOooops

I will write to BofI in the first instance and then Ombudsmen, I already wrote into Watchdog yesterday. Now I know from the Guardian that it is only 13,500 of us affected, against 161,000 mortgages it inherited from Bristol & West, surely we can't be shoring up the bank's capital reserve? :question:

I took mine out 2001 and no problems till now!

NO not shoring it up but paying a realistic mortgage rate.

The_Hawk

As another one who is impacted by this, I have already put in my letter of complaint.

Initially, I am pursuing this that on the basis that the increases are wholly unjustified (for a number of reasons) and I have asked them to clarify i) what difference this change will make to their capital reserves, ii) details of their costs of funding mortgages and iii) confirmation as to whether this just applies to ex Bristol & West customers or all Bank of Ireland tracker customers.

I await their response, but I am sure I will be going to the Financial Ombudsman Service, probably on a number of grounds, including mis-selling.

rckl88

Took out a S8NM-Core BTL 5.99% 3yr fixed then 1.75%+BR back in 2007.
Received an Offer of Loan and Residential Mortgage Conditions 2006 Edition 3 etc.

I cannot find any related special circumstances but in the Offer of Loan it does specify:
When we are charging you interest at a tracker rate:
-We will only change the tracker rate if base rate changes. This means we have no right to change the differential for the purposes of condition 6m of Residential Mortgage Conditions (which doesn't make sense btw)

Hopefully I'm not affected but please advise if you are in same situation and noticed something I've missed.

smiffy

Graham_Devon wrote: »

I don't mean to sound harsh here, but what would you have done with base rates at 3%+ which would have put you in the same position?

I understand this statement, but the expectation is that the rate would increase at a similar rate at which they fell.

http://www.bankofengland.co.uk/boeapps/iadb/Repo.asp

Not a 3.1% hike in one hit!

plimsolls_on

jobdone1 wrote: »

NO not shoring it up but paying a realistic mortgage rate.

Actually during the last 11 years I certainly have paid my share of interest.. it's not 4.49% that frightens me, its 8.49% or whatever, when BofE finally raises the base rate.. in the meantime, my tenant will bear the brunt as I will have to raise the rent to cover my costs as I cannot sell at the mo in Norfolk.