Bank of Ireland axes rate increase for 1,200 borrowers
Bank of Ireland has given a reprieve to around 1,200 mortgage customers who were expected to be hit with an increased mortgage rate.
The lender contacted 13,500 mortgage customers in February to notify them that the differential on their tracker rate mortgage was to increase from the start of May.
However, the bank said it has now decided to exclude 1,200 borrowers from the rate rise as part of its commitment to treat all customers fairly.
Around 1,000 of these customers are on flexible mortgages and had received letters which may have caused them to believe the differential on their mortgage was for the full term.
A further 200 borrowers were on a base rate tracker product and had not been notified of the circumstances under which their mortgage differential could be increased.
Both sets of customers have been contacted by the lender and will now be exempt from the mortgage differential increase. Bank of Ireland said it had contacted the Financial Conduct Authority about its decision.
Des Crowley, chief executive at Bank of Ireland UK, said: “We have said from the outset that we will review all customer complaints individually and that we are committed to treating customers fairly throughout the process, it is on this basis that we have removed these customers.”
The bank confirmed that it will continue to waive all early repayment charges for customers still affected by the differential increase who wish to move their mortgage elsewhere.