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Borrowers vow to keep fighting BoI after mortgage U-turn


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.”


Chris Gilchrist: Keep it simple

When I started work, men from the Pru pedalled around communities collecting cash premiums for small endowment policies. At that time, the Pru accounted for half of all Britain’s retail savings. The policies were expensive – up to half the premiums went in costs. But millions of people had life cover and got payouts that […]

iPipeline launches annuity quotation portal

iPipeline has launched an annuity quotation service, which includes extended medical questions set by providers. Currently, Aviva, Just Retirement, LV= and Partnership have signed up to the service. iPipeline says it expects further providers to sign up in the coming months. Director of marketing and product management Mark Wilson says: “With the growing grey market, we […]

Flexible reversionary trusts and estate planning

The suitability of different estate planning solutions will depend on the individual’s own circumstances, needs and objectives. When considering the different solutions available there is a trade-off between inheritance tax (IHT) efficiency and access. Overall a flexible reversionary trust provides a greater level of flexibility than a discounted gift trust and can offer individuals a […]


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