Bank took me off tracker - something should be done about it

[grove]

My bank had unilaterally doubled their margin when I had to extend an interest only investment property mortgage for another 12 months, despite the fact that interest and partial capital repayment was being made and the security was good. They were not prepared to negotiate.

I understand from some other borrowers that they had their margins increased also, but to varying degrees. Therefore, it seems that practice is on a case by case basis and an overall policy is surely required to protect borrowers and not leave them to the whim of individual bankers. In effect, extend the remit of the Expert Group on Mortgage Arrears and Personal Debt to residential investors.

 

[Mpsox]

You have a loan on an asset which is declining in value,
You are not making full capital repayements on that loan
You have gone to the lender and said you are not in a position to make any capital repayments for another 12 months
You are complaining that the banks have increased interest rates? Is my understanding correct?

To me it is logical that they'd want to do so since to them, the risk to them has increased