Dylboy wrote: »
I am definitely going to fight this. I've been advised to make an official complaint to the bank - to which they have 8 weeks to reply - and then take their response to the Financial Ombudsmen Service. It's long winded but in the meantime I'm going to stir up as much sh*t as I can for them and suggest you all do the same by emailing BBC Watchdog, Radio 4's Moneybox, Radio 2's Jeremy Vine and anyone else you can think of!
bank_robbers wrote: »
definitely think your right . Big collective stand , BIG VOICE and prob through the legal system
Hobby wrote: »
I was never provided with the Residential Mortgage terms when I took out the Buy to Let mortgage. Clearly there is mention of it within the terms of the Buy to Let mortgage but thats as far as it goes.
My argument is that how can the BOI now invoke a certain condition when these certain conditions were not available or provided in the first place
BR_Landlord wrote: »
Yes a Buy to Let Tracker Mortgage. I too have a Residential Mortgage Conditions A5 leaflet from 2007 (relating to a further loan) but the 6 (m) in that leaflet would not allow them to increase the differential.
I don't have a Residential Mortgage Conditions leaflet with my 2003 Offer. I assumed I had thrown it away.
Pobinr wrote: »
I have two 2001 BTL B&W base rate tracker mortgages now with BOI. Not yet received the dreaded letter from BOI.
We took out out a further advance on one in 2008.
The 2007 conditions booklet for that advance (6n) says - 'We may reduce a positive differential or increase a negative differential at our discretion by giving you not less than 7 days written notice. This means we can change the differential in a way that is favourable to you'
(6j) states 'Unless we change the differential (if any) under condition (6n) we will not change the tracker rate unless the base rate changes'
In other words its tracking base rate.
Condition 25 says 'Changes to these conditions. We may change any of these conditions at any time by giving you not less than 30 days notice in writing as long as the change is favourable to you'.
So if this booklet applies to our original mortgage advances then we are OK. But guess what we cannot find a booklet for the original advances in 2001.
It would seem from other forums neither can anyone else!
People have even asked their solicitors for the document to no avail.
So it would seem BOI are trying to move the goal posts on justification of a
mortgage terms & conditions document that no one was given!Has anyone been able to find this document namely Mortgage terms & conditions for their pre 2004 B&W tracker mortgage ?
If they have been transparent & open as is required of them, then how come no one was aware of this possibility of a hike in the differential ?
After all who would knowingly take a out a tracker mortgage that one day would in effect become a non tracker?
A tracker mortgage does not have two variables. It only has one variable namely the bank of England base rate.
If they try to increase the differential from 1.75% to 4.5% then it's surely another case of miss selling.
Because clearly it's wasn't what it said on the can which is 'base rate tracker mortgage' when BOI are now trying to make them infinitely variable mortgages!
bluecross wrote: »
Not happy about this change - even joined the forum to express this.
My "lifetime" tracker flex mortgage is going to jump from 1.19% to 4.49% that's nearly 4x as much.
Even if it is a "special circumstance" it is still more than the current market rate. This just seems a way to ditch the customers they are not making any money on.
For those who can't find their conditions; here is an extract from the conditions for the B&W Flex mortgage 2001 - Edition 2:
Unless otherwise provided in the offer, we may change the differential (if any) at any time by giving you not less than 30 days written notice. Conditions 69(o) to 6(r) apply to any change in the differential which we make under this condition 6(m).
Condition 6 (p) Before the end of any protected period, we will only increase a positive differential or reduce a negative differential:
(i) if we believe that the increase or reduction is necessary to maintain the viability of our business following a serious adverse change in market conditions or in the relationship between the base rate and the rate which we pay on the funds we raise for use in our mortgage lending business;
It is the conditions 6(m) and 6(p.i) which I think that they are using to increase the differential. Though the letter is not very clear about how or why.
I would have thought that if it was "necessary to maintain the viability" of their business - it would mean they were in financial difficulty - but their website says they are not and that their "UK mortgage business is healthy"!
I would have thought that even if they are legally able to do this - there may be grounds for miss selling of these not-so "lifetime" tracker mortgages.
I agree with others here we need to work together to change or stop this, not just take it lying down. The more of us that complain to them the FOS, or the media the more expensive and embarrassing it is for them.
Twitter: @talktoBOI #BOIscandel
JimmyTheWig wrote: »
I'd certainly like to think that if the base rate returned to normal levels then the differential would return to normal levels.
If not, they'd be losing customers hand over fist.
Graham_Devon wrote: »
The BBC stated that a lot of these mortgages were self certification mortgages.
I don't know what "a lot" means, neither do I have any evidence other than what the BBC stated on the business section of their website.
If true, I guess it gives an indication of why A) it was so popular amongst landlords and why so many now find themselves in trouble.
Thrugelmir wrote: »
I doubt BOI will maintain the differential in the longer term when rates return to normal levels.
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