Bank of Ireland tracker mortgage % increase
Dylboy
Forumite 9 Posts
Has anyone received a letter from the Bank of Ireland recently informing them of a MASSIVE interest rate rise on their buy-to-let 'tracker' mortgage? My letter this morning notified me that my interest rate would rise from 2.25% to 4.99% as of May 1st. I have had the mortgage for 8 years and never defaulted so this isn't a penalty, it is as they describe it a 'special condition' in my loan agreement which allows them to do it. Ironically they cite the banking crisis as a special condition (something that they caused themselves!). This is a 'tracker' mortgage which follows the Bank of England base rate which hasn't changed, so I'm going to fight it - not that I stand a chance - just wondered if anyone else had fallen victim to this?
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The bank entered into an agreement with me and are now defaulting on it, if the bank if England base rate went up to 10% bank of Ireland would expect me to pay the mortgage, if I could not afford it they would take my property back, I cannot believe they are allowed to do this but I guess they would not do it if it were illegal but I would love to fight it as the rate is more than doubling which can't be right?
So now they have changed the rules to shaft them and everyone else on a tracker. I have spoken with them and they say they can double the differential at their will and there is nothing I can do so this time next year if they choose they could double my mortgage again unless I give up the tracker and go tack a fixed rate at 4.49%. The problem is we took a chance and opted for trackers and because we won out they have now changed the rules if base rates had gone to 10% they would not have been so keen to help us out they would have just told us we took a chance and lost. Fact is they are sharks and are trying to screw us we can't let them get away with it, I have no doubt what they are trying to do is wrong and I am going to cancel my DD and set up a standing order to pay the mortgage at 2.25% and let them take me to court.
Complaints process. FOS. Sort it that way. In the meantime, pay what they demand - under protest.
I have requested a copy of the T&Cs to see what this 'special condition' is. In the letter it says they are allowed to do this "for a number of valid reasons" including increasing their capital reserves and to cover their rising costs.