The story in the Telegraph is that some 13,500 Bank of Ireland customers have had notification that their tracker mortgages will increase irrespective of rate changes from the 1st of May. Industry experts have commented that this move is contrary to the regulations supposedly in place to "treat customers fairly". From May 1st the tracker rate of buy-to-let mortgages are due to rise to Bank Rate plus 4.49%.
Mortgage Moves Sanctioned By Regulators
This seems outrageous given that regulators have had to first rubber stamp the changes. Some experts have highlighted the fact that borrowers may be able to challenge this decision on the basis that the key term and conditions of the mortgage should be highlighted and not buried in the small print. Other mortgage holders of similar mortgages were unsuccessful when they tried to challenge increases by Skipton Building Society and the Halifax last year. If you are a landlord that have been affected by the Bank of Ireland's moves please let us know by posting a comment below.
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The terms that allow them to do this were apparently removed from later deals (I believe it only affects deals done around 2002) as they were deemed unfair! I have 5 all dating around 2006, previously b&w now boi and I've read offers letters & ts&cs and there is no mention of ability to change differential and two of them specifically state they cannot change the rate unless the bank rate changes. Hopefully any of us with later deals will be ok but it's certainly made me very nervous about what they might try next in order to clear they loan book as I believe they want to do. I would try to move but equally think why should I having paid considerable product fees for these so called 'good' deals with lifetime trackers???
ReplyDeleteGot a letter this morning confirming that my rate is unaffected with ITL, think mine is with Coventry. Be fair - these bankers have had a hard time justifying bonuses, the poor guys need their cash from somewhere right? Me trying to better myself with two buy to let properties just wont do!
ReplyDeleteThanks for the info. I've just also received confirmation from ITL Mortgages (part of the Coventry BS) that there is no impact on my 3 mortgages. Relief on my part but I do feel for those guys with Bank of Ireland mortgages. It really does seem like a kick in the teeth!
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