Brokers are urging the 14,000 Bank of Ireland standard variable-rate mortgage customers affected by the sale of its £1.1bn loanbook to Nationwide to consider remortgaging with a different lender.
Nationwide acquired part of BoI’s UK residential mortgage book last month. BoI borrowers on standard variable rates could face significant rate rises as a result of the deal.
The deal will see 14,000 BoI customers transfer to Nationwide subsidiary The Mortgage Works in December.
BoI’s SVR is 2.99 per cent while TMW’s is 4.79 per cent. BOI customers will continue to be charged their current rates as part of a “temporary concession” but Nationwide says it retains the right to withdraw this concession and amend the SVR. The mortgages are all in England, Scotland and Wales, with an average LTV of around 50 per cent.
Chadney Bulgin mortgage partner Jonathan Clark says: “It would be disgraceful of Nationwide to amend the SVR for BoI borrowers. It throws brokers a lifeline though as there are potentially a lot of customers on an SVR that will want to remortgage. Clients would be daft not to look around.”
Lentune Mortgage Consultancy director Stuart Gregory says: “BoI borrowers on an SVR should start to look elsewhere. My main concern is that people do not get any nasty surprises.”