Bank of Ireland spares 1,200 borrowers from rate rise

Bank of Ireland confirms that some 1,200 UK customers will no longer face higher rates.

10:15 25 May 2013

After receiving numerous complaints regarding rate increase, Bank of Ireland announced on Tuesday that 1,200 customers will be spared from paying higher rates. 

 

Two sets of customers will be saved from facing rate increase. The first group includes around 1,000 Flexible mortgage customers using flexible facilities on their mortgage account. While the second group, which includes about 200 customers, are those who switched their mortgage to a base rate tracker. 

 

Des Crowley, chief executive of Bank of Ireland UK, explained: “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 sent out letters informing 1,200 customers about the good news. 

 

However, 12,000 customers will still be affected with the rate increase. These people believed that their rates will stay low as they were linked to the Bank of England rate which is currently at 0.5per cent. The typical change, which largely affects buy-to-let mortgage holders, will be slapped with 4.99per cent from base rate plus 1.75per cent. 

 

Bank of Ireland said that the increase was due to increased funding costs and the banks’ need to maintain greater levels of capital. 

 

Customers who are affected with this move can call the bank’s phone line 0800 345 7512.