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Bank Of Ireland Doubles Mortgage Rates, Homeowners Fear More To Come
With the Bank of England cutting its wholesale interest (bank) rate to historic lows and now the ECB slashing 50bps off its key rate (as well as remonstrating on the reduction in fragmentation across European nations), it is perhaps perplexing (or simply too obvious) that a bank would raise its mortgage rates. As the Daily Mail reports, government-owned Bank of Ireland (BOI) doubled mortgage rates for 13,500 customers in the UK leaving homeowners with huge increases in their monthly payments. The bank, exploiting small print in the legacy mortgage contracts, will hike the interest cost for 1-in-14 homeowners from 2.25% to 4.99% (raising the spread over the bank rate on these loans from 1.75% to 4.49%). Anger is rife as customers complain "it's all very frustrating," adding that they thought this was a 'tracker' mortgage but BOI defends their massive rate hike on increased funding costs and the need to maintain higher levels of capital. The disconnect between wholesale gorging provided by the Central Bank and wholesale gouging of the real economy grows ever wider it seems.
Thousands of homeowners are facing a huge increase in their mortgage repayments after the Bank of Ireland doubled rates overnight.
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... will affect some 13,500 UK customers,
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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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A typical change will see a buy-to-let mortgage holder who is currently on a rate of 2.25% - made up of the base rate plus 1.75% - see it rise to 4.99% from today, representing the Bank rate plus 4.49%.
For residential customers, changes will be introduced in two stages. From today, they will pay the Bank rate plus 2.49%. On October 1, it goes up to Bank rate plus 3.99% - currently 4.49%.
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He said: 'It was sold and marketed as a tracker rate. I thought I had that margin for life. It's all very frustrating.'
BOI blames the rise on increase funding costs and the need for banks to maintain greater levels of capital. It has set up a phone line for anyone worried about the impact of the changes.
The changes affect seven per cent of BOI's UK mortgage customers, the lender has said.
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'This clause was clearly referenced in the pre-sale offer document provided to the customer and the customer's intermediary prior to completion.'
It said customers were free to move to other providers and no early repayment charges would apply.
However tightened mortgage criteria and falling house prices may mean some struggling to find new deals.
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Oh Ireland, it has been awhile since you were a subject on peoples minds.
Also, those long NG are feeling a sting today.
Kudos to Reggie Middleton. Nice job Reg...
http://www.zerohedge.com/contributed/2013-05-01/beginning-great-irish-un...
well... over here the rates on a variable loan are 1,32% and fixed are that 4.7%
The smart people took the 4,7% loans and the other 99,9% took the variable loans....
MONKEY!!! MEET HAMMER!!!
BAMBAM!!
Seems to me the Irish are giving the Brits a taste of what the UK has been serving up for hundreds of years. Way to go BOI, stick it to those Limey fucks.... LOL
Banks, Bankers, Fed, Bernanke, Central Banks, TPTB, ETC ? Sperm Burping Gutter Sluts.
That's an insult to sperm burping gutter sluts...they at least provide a valuable service...
Cyprus'd in Ireland...how fucked up is that
Banksters will get it out of all of us, one way or the other
Not as long as I keep socking it away at an ever increasing rate in PM.
An Englishman, and Irishman and a banker sat down at a bar who had a rookier bartender. And the rookie made some major mistakes, overlooking a fly in each of the beers she served the men.
The Englishman stood in disgust, dropped a few Euros on the bar and left without a word.
The Irishman flicked the fly out of his suds and started drinking like nothing happened.
The banker gently picked up the fly between his thumbs and index fingers and yelled, 'SPIT IT OUT RIGHT NOW! SPIT IT RIGHT THIS MINUTE!'
The friggin banksters always either refer to the fine print, actually microprint, or change the rules when convenient..
Default is the one thing they let technically happen every day (for them) but will not officially acknowledge.
the secret to busting the bastards if for everyone to commit to default.
Yet more muppets being fucked over...
they trusted the bankers... MORONS!!
I just can't feel pitty for those people. They knew better than reality.
Personal Finance 101- Do not take out adjustable rate loans.
As the article states, these mortgages were taken out prior to 2004. You know, back when we were all told to get into real estate before it's too late. Back when we all, and I include you, believed that bankers could be trusted. Back before we actually found out how corrupt the system really is. Hindsight is a wonderful thing, but 10 years ago things were very different. Blaming the victims of this farce is a little callous don't you think?
It was either stated in the loan documents people signed or it wasn't.
Bait and switch advertising laws help guarantee that customers won't read the fine print.
Are you really that gullible?
I had a bank in '80 said the only loan they would write was an ARM.
I said no thanks and walked out.
If you're going to walk around like a wide eyed child, don't buy anything.
You could trust the banks in early 2000's? Fuck, I'm not 40 and I remember the Savings and Loan BS....
not everyone is a well educated 'conspiracy theorist' like the in the know folks on here. most if not all of this trust was placed when Irelands Taoiseach (equivalent to english PM) was on record as saying the people who were calling the housing market a bubble should 'go hang themsleves'.
coming from the man who lit up the country with 'prosperity' it was no small comment!
Wait till the credit card companies start jacking up their "interest" rates, which according to the fine print, they can do at a moments notice
I just received yet another credit card offer which would be tied to my frequent flier card. (American Express)
While the offer and costs on the card where about average, including the 120 dollar a year fee, I noticed that the interest rate offered was 30%!!!!!
This is the highest credit card interest rate I have ever seen. Is anyone else seeing rates this high?
Annual Interest RateAs a charge card, the balance must always be paid in full each month in which case $0 in interest charges will apply. Interest rate of 30% applies to each delinquent charge from the Closing Date of the statement on which that charge first appeared.
These rules are made for breaking. And that's just what they'll do. One of these days these rules are gonna walk all over you.
<Apologies to Nancy Sinatra.>
never apologize for nancy.... that song was horrible... heck i knew a girl whose definition of hell was that song on repeat...
"If you want a vision of the future, imagine these boots stamping on a human face - forever."
Sounds like it's time to start a "jingle mail" campaign. Let the pig banksters eat cake and see how they like it. Starve the beast.
Not in Ireland. Recourse loans = debtor's prison for walk aways.
Doesn't Ireland have airports with outbound flights? Are there not boats to Southampton? Can you not hitch a ride with a Roma truck driver taking a load of hash to Amsterdam?
You might hitch a ride carrying CASH to A-Dam.
The hash goes the other way.
GDP crushing bailouts is bullish.
God's Work !, Glitchez
It's sickening watching these debt slaves around the world being held captive while they sit by and just take it up the ass. What in the hell is it going to take?
I believe that is pronounced arse.
hope Ireland has lots of caves, that's where people will be living soon. somebody rise up already
WTF!
That hike only affected 7% of mortgage holders. The prior 100% loss for bond holders was a small slice of the population too.
The banksters are fucking people over one small slice of the demographic at a time.
So fools think it is only happening to OTHER people and it will NEVER happen to them.
Irish house prices poised to fall. Further. Banks will fail. Again.
Cyprused!
There is only one asset class worth holding in the environment. It is the kind you can hide.
They should simply get a mortgage directly from the European Central bank at 0.5%
And the banks wonder why the general public view them as despicable organisations. http://www.investmentcontrarians.com/stock-market/where-to-look-for-the-...
Doc; unlike in times (era's) past, I feel this is the new normal. Never before in the history of humanity have so many "distractions" accounted for the attention of the sheeple.
I wonder if we'll see more of this across Europe as banks move to Basel III reserve requirements. More expensive for the consumer, since the supply of lendable capital gets reduced as more is moved into reserve, but healthier for the bank as an institution.
On the other hand, how much of Europe can afford to hike mortgage rates? Imagine what would happen if Spain jacked up its rates like this… all those loans would be lost like tears in rain.
LOANS don't pay the bills anymore...it's all about central bank drip-feed and prop desk profits...
Wilbur Ross owns a chunk if BoI,
Never, ever forget that this is intentional and its purpose is to usher in Feudalism 2.
1. In Cyprus, they raised Bidness Taxes and reduced available money to the Proles.
2. None, NO ONE in the EU ever argued that perhaps the rest of the EU should LOWER their Bidness Taxes to match Ireland's Corporate Rate.
It was always "Ireland should raise the CTR to "equalize" with the rest of the EU".
This is, and always was about the Rise of State Power, whether called National Socialism, International Socialism or Choom for Everyone.
"Making the World Safe for Fascism."
CW
Of course they wont call it 'feudalism'.
They'll pick some harmless saounding phrase like 'Happy, happy communal bail-in Nirvana.'
Makes me sick to even type it.
With the Bank of England cutting its wholesale interest (bank) rate to historic lows...
BOI defends their massive rate hike on increased funding costs...
LMAO!!
England is not using the Euro as it's currency. They do not have to worry about the ECB bailing them out. Much like the US, they can digitilize currency on their own. I'm not defending what BOI did, I'm just stating it is like comparing apples and oranges.
Hahahahahahahahaha...! FUNDING REALITY SHINES THROUGH THE ARTIFICIAL CHEAP MONEY....! No sympathy for those getting artificially-cheap mortgages on the back of all the rest of us...WE pay for their mortgages through financial repression.
Refi's are dirt cheapo right now, so why dont you get one and stop hating those of us who do as the market allows?
For those carrying fixed rate mortgages might I suggest taking a closer look at your initial contract and perhaps also asking one simple question, show me the note motherfucker! Fuck the mother fucking paper-pushers, they create nothing of real value and live solely by skimming real value from the fruits of your productive labor. Fuck em, let it burn.
there is a very good reason that all of the major religions at one time forbad usury... should be more than obvious by now. what is less obvious is how that prohibition was removed in two of the three major religions... and why the odd man out is under constant attack by the money changers.
Yes, but the original laws on Usury (as decreed by their spiritual leader), invariably got watered down. The first trick/dilution that took place, was that they changed the definition of Person; if a 'Person' was not of the same Faith (by blood or conversion), they were "fair game". Usury within the Faith is mostly still taboo -- at a theological and/or cultural level.
The US used to have anti-Usury laws, I believe, but they've been quietly eroded away by banks and credit card companies. Even payday loans places, which were considered dens of iniquity for years, have been "sanitized" in their image, since many are now owned by banks (via subsidiaries).
Fat chance of getting a new Anti-Usury law passed.
Islam still rails against usury. Jew land is in constant state of war vs. Islam. Any connection?
John the Beloved calls them "Synagogue of Satan," Revelation 2:9, 3:9. Four times Scripture clearly states "Ioudious" (u-DI-ahs) murdered Christ. John's gospel states Ioudious' murder of Christ was crime forbidden in Rome. Mankind generally considererd Ioudious' murder of Christ the worst crime in history. The primary benefit to Rabbis in promoting "holocaustinity" was to replace the murder of Christ with this new alleged crime as the worst ever (it helps to create a new word to promote mythology). "Holocaustianity" promotes the idea that anyone who points any finger at any bad behavior by a "jew" desires only to murder every single jew on earth, AKA "anti-semite." I like James Sobran's anti-Semite definition: "Not someone who hates jews but rather someone hated by certain jews."
The earliest part of the 20th C is the first time the jews promoted their lie of "six million innocent dead jews." Took 'em several decades of telling this lie till it finally stuck much later courtesy of Hitler's accomodating bigotry towards jews.
My first thought, LOP. Time to sell the house and realize gains, and then dive deep and run quiet.
Laws of physics....
Agreed re fixed rate mortgages.i took one pre crash cos I saw a crash coming and didn't appreciate how fucked up it would be and how long the financial rape would continue to "FIX" the problem(infinity looks about right).
Problem is I am a big boy who took decisions for good or for ill.as for getting out of it , the cunts have me by the contractual balls.i have already taken steps to remove myself from the bankers clutches barring this unfortunate mortgage.and before anyone says give em the keys,this is not an option in Ireland and I also have a family to house.i have learned a painful lesson that shall not be repeated in the future.
So even if you had a fixed rate mortgage that was taken out prior to October 2004, they can raise your rates? I would expect the price of land in Ireland to fall yet again.
They just want to repossess real assets, like real estate.
Brought to you by Money-Out-of-Thin-Air/2005. :-)
Yea, just like in Romania ;)
A TBTF bank changing the rules of the game, mid game...
Who couldanode?
Cant believe Inthemix96 hasnt jumped on this with a great rant. Must be stacking his ball bearings and warming up the slingshot.
OT, but if i ever get a knock on my door because of this shit below my neighbors wife and kids better get to running. Read half this article and just felt sick. Russia looks better and better every day.
http://www.mypalmbeachpost.com/news/news/state-regional-govt-politics/br...
Just logged in Darksky, just in from work.
To say I am shocked would be a lie. These immoral fucking bastards deserve to be shot. Just think how many more poor cunts are one step closer to the breadline thanks to insane actions of yet another pampered tax payer funded group of fucking criminal retards.
We need action now folks, we need to remove these fuckers from their balls, fucking outrageous thats what this.
Hope that helps.
Your insights from across the pond always HELP. I volunteer to stuff removed balls down their throats.
Darsky - before removing a banker's balls it is helpful to fry them a bit with a propane torch. That way they will be easier for the toothless scum to chew. After all, why be cruel?
Didn't you say Irish Bank?? Then this makes perfect sense.!
How to confuse an Irishman?
Lead him to a room full of shovels and ask him to take his pick!
Or give him a mortgage, and increase his interest rate when interest rates for everyone (?) else is falling.
One confused Irishman!!
Holgerdick....
Curious to know what nation you are from that has escaped the financial rape and pillaging.you must be super evolved....
Legalized theft
Ask Bono of U2 to start a mortgage bank. Lemme see what a good name might be...
Tax cheat and global corprate shill Bono was pimping for Ireland to join the euro. He deserves a lamp post and some rope. he also screwed over the idiots who bought the Face Book IPO.
Most of us in Ireland are on trackers, mine is down to 1.45% today plus I get mortgage interest relief of 25%! Only paying about a grand a year on interest. The minority are getting screwed to balance out the deficit. My local branch closed a few weeks ago along with hundreds of other branches in the country. The above story is a bit sensationalist - it was about the uk customers anyway. It will be interesting to see if they try to take the trackers off us, they tried calling and emailing before to convince me that rates were going up and we needed to fix our rate asap! lol !
Ireland version of snap...gltu!
Meanwhile, The Press in England is trying to "Ron Paul" Nigel Farage and Ukip:
http://www.ft.com/intl/cms/s/0/ab8d3b1e-b196-11e2-b324-00144feabdc0.html...
Not a banker or defender thereof, but when will borrowers read and understand the documents they are signing?? How about, before they sign them? There are no clauses "buried" anywhrere -- these are not 200 page loan documents. Do not take out the loan if you do not understand the loan. It is that simple.
Don't twist my ARM! I don't want that loan!
Adults taking responsibility for due diligence?
Impossible! We need legislation that treats everyone like a retarded child.
That way people can act in confidence that everyone they transact with will treat them like Mommy does, with a burp and a wipe.
Pops always said the best way to stay on good terms with people is not to let them screw you over.
This is coming to Canada and other "safe" countries...
Canadian banks offer rising interest rates for CD's (3-4%), because they all 'expect' the rates to rise. Meaning: the BOC will raise the rates. Soon. This probablt helps fuel the real estate market, if they 'expect' mortage rates to rise.
At a certain point, that ought to be coming up pretty soon after this kind of really stupid move, even the most peace-loving Irish are famous not not taking any more shit from anybody. And my guess is that there is probably quite a bit of bomb-making material stashed about here and there, with an adequate number of people who know how to build and deliver said ordinance to where it will do the most good. Lights! Camera!
If we trace Usury to the Middle Ages, before it was called Loan Sharking, they were called 'Money Changers'. Typically, but not always, they were Jews, because... The Church effectively decreed that 'No good Christian would deal with filthy money or with interest rates'. Since the need for Money Changers was there, but the Church frowned on this, it was a natural development that the Jews would handle "filthy money". To the Jews this was fine, since they were not allowed to own land. At least not back then. Segregating them into ghettos did not help, and a system within a system started to prosper.
These loan sharks were almost always repaid; they got their "pound of flesh" (see Shakespeare's 'Merchant of Venice') from delinquent payers.
The trouble was, this was also a risky game for them, as the feudal lords would periodically "cull" the money changers -- about the time that they could no longer pay back their own loans. This prompted some of these Money Changers (Loan Sharks) to move up the feudal ladder, for better profits and less risk. This risky business was typically a family-business. One family in particular (the Amschel Maier family, at 'zum Rotschild', on Judengasse, in Frankfurt) managed to get "in" with some German princes. This family built their innovative business model on the concept that the most profitable loans of all are loans for waging war. "Hey, if these arrogant, vain and power-hungry idiots (Tribes) who pray to the same God, want to kill each other and be indebted to me, so be it!" was their household motto. Quite honestly, this is not an unreasonable position for someone of a different faith.
For centuries it was noblemen and aristocrats who would borrow from and enrich the Money Changers, since commoners could seldom afford the repayment terms. Whenever their debts got too large, they'd stoke up the malleable masses of serfs against the Money Changers. These serfs had "Stockholm syndrome" before it was called by that name, and they always sided with the Lords who used, abused and taxed them on a daily/regular basis. When it suited them, it was easy to 'demonize' a group of people with different language, customs and beliefs. Like we used to do to Indians or Chinese, and we do to Muslims today. It also did not help that the Education system back then (limited and exclusive as it was), was more concerned about teaching Biblical knowledge than scientific or financial knowledge. The nobility and Church have only themselves to blame. Anyway...
If these new 'financiers' (bankers) were able to finance both sides -- so much the better. Because... one of the two sides was bound to win (the original Hedge funding), and the terms for both sides were such, that the winner would also pay for the loser's debts. These repayment terms were acceptable to these princes & kings on both sides, as they would simply collect more tax from the land they conquered. The only true and guaranteed winners were: The Banks! Over time, these banks grew so rich and powerful, that we ended up getting Central Banks is all Western (Christian!) countries.
Hence: All modern wars are now banker wars!
Moral: If a people want to be 'free', their populace must be informed/educated in far, far more than "faith" (religious brainwashing). They must be masters of math, sciences and money theory. If they down-size or reign in their Central Banks (CB's), they must nationalize them. They must also impose hard and virtually unbreakable laws & processes that limit/prevent their leaders from waging war. In spite of all the pretexts and 'reason's given throughout history, the waging of war is never for the benefit of its populace. It is for the sole benefit of its leaders, so that their vanity, arrogance and power might grow, for their religious leaders to grow their market share (coffers and 'souls', but mostly coffers) by conversion, for the profitability of its Merchants of Death, and the profitability of its financiers (bankers) who are repaid by the State's power to tax.
The bank that likes to say fuck u.
Get out of debt, bitches. Even if it means living uner a bridge.
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So lem’me get this straight:
This is affecting those with mortgages with a tracker rate which is
Tracker rate - a variable rate that is linked to an underlying public interest rate (typically Bank of England repo rate) by a predetermined margin. For borrowers the rate is often linked to the LIBOR. (Which is SFA right now.)
and it only is affecting those with mortgages BEFORE 2004.
So that means, most of those shlubs have at least 1/2 of their mortgages paid off.
Do you think that the bank is counting on those people losing their homes and/or that they have the ability to pay them off, and will fall in line, instead of just letting them go, like say, somebody who took a mortgage in the last 5 years?
It’s whad’ I’d do, ‘cause I know $‡Ï†®@†$.
This a theft right in front of their eyes.
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V-V