Bank Of Ireland increasing my Tracker's interest rate

[Stillborn Crisps]

I received a letter today from Bank of Ireland informing me that although the base rate hasn't changed in almost 4 years, they've decided to increase the interest rate on my mortgage anyway.

 

My mortgage is one that tracks at a fixed percentage above the base rate (they call it the 'differential'). It's this differential they're increasing.

 

They say they're entitled to do this. Are they? I've had this mortgage for about 11 years.

 

If they are allowed, would there be any point trying to argue/barter/threaten to leave?

[sequenci]

Hello there,

 

According to this Guardian articlethere seems to be a contractual clause allowing it:

http://www.guardian.co.uk/money/2013/feb/28/bank-of-ireland-mortgages-rate-increase

 

Clauses aside you may wish to consider trying to mount a challenge under the Mortgage Conduct of Business Rules on the ground of unfairness. I'm no expert but it seems massively unfair to hike up the interest rate when the base rate hasn't changed in all these years.

[sonichedgehog]

Hi,

I've posted on a similar thread on Landlordzone,with only 3 posts I cant add a link here, so here's the outline of it,you'll have to put the slashes in the spaces:

 

landlordzone.co.uk forums showthread.php?53455-Bank-of-Ireland-Tracker-rate-increase-2-25-to-4-99-!

 

After interest rate fixing, this is presumably another example of bankers' business ethics. My inclination at this stage is to challenge on the basis:

1 The long special terms document I was asked to sign did not include this clause, only a reference to the document that contained it (which was not supplied to me); and I signed to say I had received certain documents, but the relevant one was not on the list. I consider that was deliberate, as no one would enter into a deal that could be changed at the drop of a hat.

2 Unfairness, obviously.

3 The thread to which I refer gives the clauses, and they do not, on the face of it, justify any increase.

Important to exchange ideas and stand together on this. I hope I treat my tenants and contractors fairly and believe we all have the right to demand the same - even from the bankers, although that clearly goes against the grain for them.

[Stillborn Crisps]

Thanks Sonic, will check the thread out. Here's the proper link for anyone following:

 

landlordzone.co.uk/forums/showthread.php?53455-Bank-of-Ireland-Tracker-rate-increase-2-25-to-4-99-!

 

I've seen on other forums some people are unsympathetic as it seems largely Bank of Ireland's Buy-to-Let customers are affected by this, but if they are allowed to get away with it you can be sure every residential provider will follow suit.

[EmilyWhich]

Hi There

 

Which? Consumer Rights website have guide on how to complain to the Bank of Ireland...

 

With a tool in which you can fill in your details, and a complaint will be logged with the BOI,

 

Hope it helps you