FCA 'concerned' about BOI rate hike - Mortgages - News - Moneyfacts


Moneyfacts.co.uk News brings you the latest financial & economic news & reviews of the best products in the UK by our team of money experts.

FCA 'concerned' about BOI rate hike

FCA 'concerned' about BOI rate hike

Category: Mortgages

Updated: 08/07/2013
First Published: 08/07/2013

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The Financial Conduct Authority (FCA) has said that it is concerned about the impact the Bank of Ireland (BoI) rate hike is having on consumers.

On 1 May, the BoI increased its tracker mortgage rate from Bank of England base rate plus 1.75% to base rate plus 4.49% for buy-to-let deals and to base rate plus 2.49% for residential mortgages. The rate changes affected 13,500 borrowers.

In a letter to Treasury Select Committee chairperson Andrew Tyrie, dated 20 May but only released today, FCA chief executive Martin Wheatley said that the FCA is working with the BoI to help protect consumers.

All mortgages affected by the rate changes were sold prior to regulation in 2004, which means they are out of the FCA's jurisdiction; however, Mr Wheatley said that the FCA is continuing to apply pressure on the bank.

In the letter, Mr Wheatley also revealed that affected borrowers who were sold a mortgage through an intermediary may be able to take legal action against that intermediary if "they believe they had received negligent advice".

"Customers concerned have the right to complain to the firm, to the intermediary that sold the product and, in most cases, to the Financial Ombudsman Service," he said.

What Next?

Find the best buy-to-let mortgage for you

Make sure your getting the best deal with our mortgage search

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

Homemover numbers fall for first time since 2011

The mortgage market enjoyed a record year in 2016, so it may come as a surprise to hear that the number of people moving home has fallen for the first time in five years, with fewer apparently taking advantage of the market.

2016: the best year for remortgaging since 2009

Remortgaging has certainly seen a surge in activity of late, helped in no small part by the dramatic drop in mortgage rates over the last year, so much so that 2016 as a whole proved to be the best year for the sector since 2009.

Homeowners underestimate remortgaging savings

Remortgaging has been enjoying a surge in popularity in recent months, and considering how much you could save, it’s a no-brainer! Unfortunately, many fail to realise the extent of potential savings, which could mean too few make the switch.