Bank of Ireland has just increased my mortgage by 256% !

topseyt

Bank of Ireland have just told me that to 'hold more capital reserves' they will increase the mortgage rate differential from base rate +1,75% to base rate +4.49% a 256% increase ! They say my mortgage loan agreement (originally with Bristol & West) has a 'special' condition that allows them to increase the mortgage rate differential by 256%. I am going to check my original mortgage agreement, but has anyone had experience of this massive increase in the mortgage rate differential ? If not watch this space you could be next !

Thrugelmir

See other threads on the topic.

nicolarowley

Same boat as everyone else.
I think in order to fight this we will have to find a way of acting together. I'm not sure how to achieve this but institutions like BOI are unlikely to listen to individuals.
I have contacted Moneybox (BBC) so hopefully they will ventilate this situation.
I contacted the FSA who advised me to follow the B&W complaints process and, if not satisfied with the outcome, to refer it to the FOS. I confidentally expect a corporate brush off from B&W so I should have thought the more complaints the FOS have the better our chances.
Basically if they can use increased capital reserves as a justification for tearing up mortgage agreements then all lenders could do the same. That has to be stopped.