Bank of Ireland tracker mortgage % increase

Thrugelmir

leveller2911 wrote: »

France and Germany are totally different than the UK in that tenants/landlords are happy to have long term tenancy agreements.

Understanding a market is a prerequisite of running a business.

Germany suffered enormous destruction of housing following the D-Day landings and the Russian offensive on the Eastern front. The Allied bombers also inflicted huge destruction on cities such as Dresden.

After the war under the US funded Marshall plan. Germany rebuilt its housing under the model we see today. Long term rental property at reasonable cost.

Germans on the whole have a different attitude to credit. So like comparing apples to pears .

pandersturn

thought this forum was about bank of Ireland tracker mortgage % increase.

BR_Landlord

BTL landords have been able to borrow against the perceived increase in value of their "portfolios" to put larger deposits down than FTB could ever afford.It wasn't hard cash deposits it was imaginary money.
Leveller2911

I wasn't aware that was possible. The usual calculation is that if the monthly rent (according to actual rent comparibles in the same area) is 125% of the monthly mortgage repayment figure based on the mortgage product, in this case a fixed term reverting to a base tracker, then you could get the mortgage subject to valuations and earnings. The BTL product from Bristol & West was 85% so you had to put down 15% of the purchasing price in real money plus valuation costs etc. I never came across a 125% mortgage or a lender who would accept imaginary money. They dont lend on what something might be worth in the future.

Where did you get this information?

leveller2911

BR_Landlord wrote: »

I wasn't aware that was possible.


I never came across a 125% mortgage or a lender who would
accept imaginary money.





Where did you get this information?

I'm guessing your very new to this BTL business as it was rife in the early 2000,s...also on residential mortgages too, they threw money at people back then.


Google it, theres plenty fo info out there.The rules have changed now, since some of the banks went insolvent. Part of the problem was borrowing against the "perceived" increase in value rather than true value. Hence when the sh*t hit the fan market values dropped and negative equity followed.

BR_Landlord

The products this thread (Bank of Ireland increases differential on tracker mortgages) is about are pre 2004 and as one of those affected (my BofI/B&W mortgage is from 2003) I can say I have been in BTL for over 10 years, so you can call me new if you like.

Rather than google it, can you tell me who was lending 125% LTV?

who was lending against perceived value? I can then google that lender.

brit1234

BR_Landlord wrote: »

The products this thread (Bank of Ireland increases differential on tracker mortgages) is about are pre 2004 and as one of those affected (my BofI/B&W mortgage is from 2003) I can say I have been in BTL for over 10 years, so you can call me new if you like.

Rather than google it, can you tell me who was lending 125% LTV?

who was lending against perceived value? I can then google that lender.

Over 10 years and never heard of buy to let gearing, where have you been living? North Korea?

Below is the link to The Wilson's the biggest participants who kept using equity gains to buy more properties, nearly 1000.

http://www.guardian.co.uk/money/2010/mar/06/buy-to-let-fergus-judith-wilson

It was widespread and helped to bring the banks down, many banks are still drowning in these rubbish loans. All the property clubs were preaching it. Have a look at video below.

http://www.youtube.com/watch?v=CE2XZg6wuoE

BR_Landlord

Thank you that's interesting!
I found 125% mortgages fro First Time Buyers (ie 100% mortgages plus a loan), but I couldnt find Buy to LEt mortgages at 100% or 125%.

Dave1968_3

JimmyTheWig wrote: »

Personally I would go back to the BoI.
I presume that your original complaint wasn't along the lines of "I was led to believe the differential was for the lifetime of the product and you have volunteers to exclude customers from this change where this is the case". In which case your complaint may well fail. I believe that most reasons for complaint cited on this thread will fail, which is why I suspect that yours will too.
So I would go back to the BoI with either a new complaint or fresh evidence/information on your existing complaint.

Yes of course its going to fail..They are not going to just say - ow OK then - THis is a step that has to be taken in order to go to the ombudsman/ FSA and then court. I include my complaint below.... Would you suggest anything else?

1) I purchased a "base rate tracker" by the bank of Ireland. It is reasonable to comprehend that this product by its very name indicates it will "track" the "base rate" I was clearly told when I took the mortgage out several years ago that I would never pay more than a "fixed" % rate above the Bank of England base rate.

2) I was not made aware that the "differential" part of this product could ever change mid term of contract. I was told it was a "fixed" rate above base rate that would "track" the "base rate" for the term of the contract.

3) The increasing of this "differential" above base rate from 1.1% to 3.39% amounts to an increase of 300% which, at a time when interest rates have remained unchanged, is clearly disproportionate, unjustified and not what Bank of Ireland led me to believe their "base rate tracker" mortgage consisted of when I was sold this mortgage.

4) The right to change a "for the life of the mortgage" mid contract is fundamentally misleading. It appears that this clause in there contract was hidden away an the T and C and not advertised. The Bank of Ireland contract has too wide a scope to rely on contractual power for its own profiteering or shortcomings.

5) The reasons Bank of Ireland give for this change are not valid. Any issues the Bank of Ireland has with its capital reserves etc are clearly of its own making or mis-forecasting and should have been planned for at the time they made this contract with me. Bank of Ireland has clearly stated they are not in financial trouble and senior staff are to receive 7 million euros in bonuses. (Google Bank of Ireland bonuses)

6) This undermines confidence in the Bank of Ireland products and the market of financial products generally.

The Bank of Ireland should be made to Honor the "base rate tracker" that was marketed and that I was reasonably understood to have been sold.

brit1234

BR_Landlord wrote: »

Thank you that's interesting!
I found 125% mortgages fro First Time Buyers (ie 100% mortgages plus a loan), but I couldnt find Buy to LEt mortgages at 100% or 125%.

No because they used Below Market Valuations (BMV) mortgages and gift deposits instead. Mortgage fraud using corrupt surveyors, mortgage advisers, builders and other white collar criminals.

Both clamped down now thankfully.

Denise2007

BR_Landlord wrote: »

Thank you that's interesting!
I found 125% mortgages fro First Time Buyers (ie 100% mortgages plus a loan), but I couldnt find Buy to LEt mortgages at 100% or 125%.

I have never come across 125 % mortgages for pay to let. They always required a minimum of 15 % deposit. The 125 % mortgages were for first time buyers.