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Treasury committee chairman Tyrie writes to FSA over BoI rate hike

The chairman of the Treasury Committee, Andrew Tyrie, has written to the FSA to ask what action it intends to take over Bank of Ireland’s proposed tracker rate hike.

Bank of Ireland recently wrote to 13,500 customers to outline plans to more than double the base rate it charges them after triggering a ‘special condition’ clause in the mortgage agreements.

A spokeswoman for the bank confirmed to Mortgage Strategy the terms and conditions allow for a differential increase if “30 days notice has been given or for any other valid reason” as long as the guarantee period has passed. The guarantee period of the 13,500 borrowers who have been notified today finished in 2006, says the bank.

Tyrie has written to FSA managing director Martin Wheatley to express his concerns over the proposed differential hike, particularly as the Bank of England’s base rate remains unchanged, and whether it will be treated as mis-selling.

He asks whether he is aware of any other lenders who have the same clauses in their mortgage agreements and what conversations he intends to have with both the prudential regulatory arm of the FSA and the Financial Ombudsman Service.

Brightstar Financial chief executive Rob Jupp says: “If Bank of Ireland are permitted to get away with this, all bets are off as far as mortgage contracts are concerned in the UK. It is really important crossroads and the FSA and the Government have to understand the importance of it. It is a defining moment for the industry.”


Montlake and Whyte join AMI board

The Association of Mortgage Intermediaries has appointed Coreco’s Andrew Montlake and Whyte Financial’s John Whyte to the board as practitioner members. Montlake is the director of Coreco Group and Whyte is an independent mortgage adviser with Whyte Financial. AMI chief executive Robert Sinclair says: “The Board felt it was important at this time to ensure […]


60 seconds with… Dudley Building Society chief executive Jeremy Wood

Congratulations on expanding your geographical lending area. What factors allowed you to do this and do you think other smaller lenders could follow suit? This should be seen as a signal that we are open for business, having taken a less active approach over the past 18 months. Strategically, we want our lending to be […]


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