Bank of Ireland - massive hike for tracker rate mortgage customers

[citizenB]

Consumer protection group Which? has hit out against the Bank of Ireland’s tracker rate hike and is offering a free online tool to encourage those affected to complain.

 

In February, the bank informed 13,500 buy-to-let and residential customers of plans to more than double the base rate differential it charge them.

 

 

Read more: http://www.mortgagestrategy.co.uk/latest-news/which-urges-bank-of-ireland-mortgage-customers-to-lodge-complaints-about-rate-hike/1070312.article

[citizenB]

The Bank of Ireland hit back at WHICH?

 

 

BoI notified 13,500 UK mortgage customers in February this year of its intention to increase the interest rate on their Base Rate Tracker mortgages, citing a specific clause in their contracts that allowed an increase after the guarantee period had ended.

 

Which? executive director Richard Lloyd said burying important changes in the small print was "wholly unfair.”

 

But BoI said: “This clause was clearly referenced in the pre-sale offer document provided to the customer and the customer's intermediary prior to completion.“This change reflects the significant increase in the cost of funding these mortgages since 2008 and the need for banks to maintain greater levels of capital.”

 

 

Read more: http://www.mortgageintroducer.com/mortgages/246348/5/Industry_in_depth/Bank_of_Ireland_hits_back_at_Which?.htm

[citizenB]

Customers of Bristol & West will also be affected.

 

The bank will charge 13,500 residential and buy-to-let customers thousands of pounds a year more using clauses buried in the small print of deals taken out before October 2004.

 

 

Read more : http://www.thetimes.co.uk/tto/money/mortgages/article3752716.ece?CMP=OTH-gnws-standard-2013_04_30

[citizenB]

Bank of Ireland interest rate rise 'fair' - Martin Wheatley

 

 

However, in a letter seen by the Financial Times, former FSA managing director and Financial Conduct Authority chief executive Martin Wheatley responded: “We currently have no plans to treat this as a prima facie case of mis-selling.

 

“We have reviewed the terms and conditions provided to us by the Bank of Ireland UK and did not identify any concerns which led us to believe the terms may be unfair.”

 

 

 

Read more: http://www.mortgagesolutions.co.uk/mortgage-solutions/news/2258529/bank-of-ireland-interest-rate-rise-fair-martin-wheatley