Bank of Ireland borrowers pursuing a class action against the bank’s tracker mortgage rate hikes have vowed to “keep the pressure” on the firm after it reversed its decision for 1,200 of 13,500 affected customers.
On 1 May, buy-to-let borrowers saw rates rise from Bank of England base rate plus 1.75 per cent, to base rate plus 4.49 per cent. For residential borrowers it rose to base plus 2.49 per cent and will rise to 3.99 per cent on 1 October.
BoI says the increases are due to extra bank capital requirements. More than 300 customers are challenging the bank because they believe the contract term was unfair and the rise should not stand.
This week, BoI announced it will exempt 1,000 flexible mortgage customers who received a letter indicating the rate would last for the entire term. A further 200 customers who switched their mortgage to a tracker and whose contract did not make it clear the rate could change will also be exempt.
Law Department solicitor Justin Selig, leading the action, says: “This is not the end. We are still going and want to keep the pressure on.”