Is this a warning of things to come?

  • Huge hike despite Bank of England base rate at historic low of 0.5%
  • Consumer group Which? describes move as ‘wholly unfair’
  • Urges customers to complain to bank and Financial Ombudsman


PUBLISHED: 13:56 EST, 1 May 2013 | UPDATED: 05:13 EST, 2 May 2013

extra extra newspaperThousands of homeowners are facing a huge increase in their mortgage repayments after the Bank of Ireland doubled rates overnight.

Borrowers are being urged to complain to the bank and the Financial Ombudsman after the move which comes despite the Bank of England base rate remaining at a historic low of 0.5%.

Consumer group Which? says the change, which will affect some 13,500 UK customers, is ‘wholly unfair’.

The Bank of Ireland (BOI) has been contacting those affected – most of whom have a buy-to-let loan – about the changes, which take affect from today.

But consumer group Which? believes they are being treated unfairly, pointing out that some were sold a ‘lifetime tracker’.

It says customers should complain to the bank and if they are not happy with the response take the matter to the Financial Ombudsman.

Which? accuses BOI of justifying the changes on the basis of ‘clauses buried in the small print of mortgages’ which were taken out before October 2004.

Which? executive director Richard Lloyd said this was ‘wholly unfair’ and said BOI was ‘taking advantage of its customers by hiking rates at a time when the base rate is static’.
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