I am very annoyed I'm coming of a 2 year fixed onto a standard variable rate and don't want to pay 4.5 % interest rate. I rang the hem weeks ago after getting a standard letter of new fixed options.i explained I'm in positive equity and in the lTV ratio of below 60% and should be entitled to new business variable rates of 3.9%..They said they would address it and get back to me in writing. I just got told on the phone my request has been ignored and I hat I am receiving the same fixed do rate options in the post early next week..I move onto a Svr next week and even though my repayment the net goes up by about 5 euro a month.im extremely annoyed I've been treated with utter contempt..I'm not really in a position to switch as my wife currently on maternity leave..The house is worth over a 100 k more than the mortgage plus they are trying to butter me up saying I'm excempt from a valuation because I bought in 2013..I feel bullied into fixing again..If I did at 3.6 % we would be in a position to switch in three years time with an even lower LTV..any advice is this the way to go
BOI, coming off fixed rate, won't give me a variable rate less than 4.5%
- Thread starter eamo15
- Start date
"im extremely annoyed I've been treated with utter contempt."
Well, no. They just won't give you what you want. And you are cross about that.
And you can't switch because your wife is on maternity leave.
So, you are a bit stuck. You should probably just take the best option they are offering.
mf
Well, no. They just won't give you what you want. And you are cross about that.
And you can't switch because your wife is on maternity leave.
So, you are a bit stuck. You should probably just take the best option they are offering.
mf
Brendan Burgess
Founder
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Do they know your wife is on maternity leave?
Tell them you are moving and they might offer you a fix for one year.
You are absolutely right to be annoyed. Lenders should not be allowed to offer better rates to new customers than to existing customers.
Brendan
Tell them you are moving and they might offer you a fix for one year.
You are absolutely right to be annoyed. Lenders should not be allowed to offer better rates to new customers than to existing customers.
Brendan
The original post doesn't make sense to me.
If you are < 60% LTV and coming off a fixed rate then as far as I can see you can either choose the best variable or fixed rate available to existing customers - namely 3.9% variable or 3.6% fixed for 2/3 years. There is no need to pay 4.5%.
https://personalbanking.bankofireland.com/borrow/mortgages/rate-table/?buyer_type=0
As far as I can see new customers don't get anything better than these rates - other than the opportunity to fix for just one year.
If you are < 60% LTV and coming off a fixed rate then as far as I can see you can either choose the best variable or fixed rate available to existing customers - namely 3.9% variable or 3.6% fixed for 2/3 years. There is no need to pay 4.5%.
https://personalbanking.bankofireland.com/borrow/mortgages/rate-table/?buyer_type=0
As far as I can see new customers don't get anything better than these rates - other than the opportunity to fix for just one year.
Brendan Burgess
Founder
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Hi ClubMan
Very interesting.
Bank of Ireland makes it clear publicly that the only option for existing customers on variable rates is the SVR of 4.5%. If they want a lower rate, they must fix. This is what they said to the OP as well. But the website says:
So the OP should be able to quote this and demand the 3.9% rate.
Brendan
Very interesting.
Bank of Ireland makes it clear publicly that the only option for existing customers on variable rates is the SVR of 4.5%. If they want a lower rate, they must fix. This is what they said to the OP as well. But the website says:
So the OP should be able to quote this and demand the 3.9% rate.
Brendan
Where have they said this?
Brendan Burgess
Founder
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In their [broken link removed]for example
Existing customers on variable rates, or coming to the end of their current fixed rate period, can apply for the Bank’s two, three, five and ten-year fixed rate options. Bank of Ireland is also cutting its 10 year fixed rate by 0.30% - this is the only 10 year fixed rate in the Irish market.
Implied in an [broken link removed]
And many borrowers have reported it on Askaboutmoney as well.
Brendan
Existing customers on variable rates, or coming to the end of their current fixed rate period, can apply for the Bank’s two, three, five and ten-year fixed rate options. Bank of Ireland is also cutting its 10 year fixed rate by 0.30% - this is the only 10 year fixed rate in the Irish market.
Implied in an [broken link removed]
And many borrowers have reported it on Askaboutmoney as well.
Brendan
But why shouldn't lenders be allowed to do that? The banks are running a business, this is something that people seem to forget all the time. They make money by lending money (and obviously other business practices). They lower rates to entice new customers. If you are an existing customer and have only a few options which are "expensive" in relative terms then you take your business elsewhere.