Bank or Ireland - Increase of "differential" !

Thrugelmir

jimfudge wrote: »

They say that they are allowed to do this under "special circumstances" - what are these special circumstances ?

In case you missed the news it started in August 2007 with the demise of Northern Rock, March 2008 saw the nationalisation of Bradford and Bingley. Alliance and Leicester was merged into Santander in early October 2008.

Over a weekend in October 2008. HBOS and RBS were within 48 hours of going bust. As had insufficient cash to trade on the Monday morning. Lloyds arranged a shot gun marriage with HBOS with the aid of a £25 billion loan from the Treasury. RBS became 83% owned by the taxpayer.

Much has happened in between. Today RBS announced a £5 billion loss for 2012. The banks are far from fixed.

Exceptional enough for you?

rosehip

OMG, I have a tracker mortgage with one of the big four banks. If BOI are allowed to get away with this, what's to stop any other bank following suit? I hope the FSA forces the BOI to back down and comply with the original T&Cs.

namtaog

smiffy wrote: »

I don't believe that I ever saw a copy of this either, I've everything filed, and this document isn't present.

I've asked the original broker I used to see if they've kept a copy, and BofI are also sending a copy.

Same here, BOI is on weak legal ground and cannot rely on something which was not provided to the borrower at the time of taking out the mortgage.

Beej_1973

marathonic wrote: »

I totally agree with you. Banks are getting bad enough press. I think they'll have had enough legal advice before sending thousands of rate increase notifications to be pretty confident that they have a case. Otherwise, why risk their reputation further.

I don't feel there is any chance whatsoever that the FOS can argue that the section in bold above doesn't apply here.

...because there are some that wont complain, and will just move their mortgage .......still a better position they were in if they didnt send the letter

Beej_1973

Thrugelmir wrote: »

In case you missed the news it started in August 2007 with the demise of Northern Rock, March 2008 saw the nationalisation of Bradford and Bingley. Alliance and Leicester was merged into Santander in early October 2008.

Over a weekend in October 2008. HBOS and RBS were within 48 hours of going bust. As had insufficient cash to trade on the Monday morning. Lloyds arranged a shot gun marriage with HBOS with the aid of a £25 billion loan from the Treasury. RBS became 83% owned by the taxpayer.

Much has happened in between. Today RBS announced a £5 billion loss for 2012. The banks are far from fixed.

Exceptional enough for you?

So what your saying is its Ok to renege on a contract as long as your skint........ hmmm what an interesting world you live in

Thrugelmir

namtaog wrote: »

Same here, BOI is on weak legal ground and cannot rely on something which was not provided to the borrower at the time of taking out the mortgage.

Banks are required comply with law and regulation every day.

That's the reason why rates are rising.

Not as if the Directors of the Bank have a choice.

motch

jimfudge wrote: »

I have the same problem with two B & West BTL loans. Interestingly, The Bank Of Ireland were offering me a £8500 incentive (for each mortgage) if we could discharge them by the end of March 2013. Also in 2006 I took out a further advance on both my accounts (called sub account2) and yet these are not affected by the change ? I also do not have any T's & C's from the original mortgage offer in my possession stating they can do this. I cannot this differential hike is legal and it seems to be an unreasonable jump from 1.75 - 4.49%.
They say that they are allowed to do this under "special circumstances" - what are these special circumstances ? apparently one of special circumstances is that they are now required to hold more capital reserves, but why penalise the BTL customers and surely it will take years to build up reserves with this method !
I think like PIP we should be able to fight this ?

help !!

£17,000 to switch both to another mortgage? worth doing surely.

I'd be doing cartwheels if my bank offered me £8,500 to clear/change my mortgage.