Nationwide mortgage customers switched from the Bank of Ireland told rates to double.
Nationwide mortgage borrowers, who face paying 60 per cent extra on their mortgage from March 2012, have been given fresh hope that their repayments will rise gradually rather than overnight.
In December 2011 around 14,000 Bank of Ireland mortgage customers were transferred to The Mortgage Works (part of Nationwide) in a deal that saw the ailing Irish bank sell off assets. Mortgage borrowers on the Bank of Ireland's standard variable rate of 2.99 per cent, were told their rate would increase by 60 per cent in March 2012, to bring all deals inline with The Mortgage Works 4.79 per cent standard variable rate. The Mortgage Works have now said that those Nationwide mortgage borrowers who had been switched from the Bank of Ireland may now find their rates moving up in stages to "avoid a rate shock".
Letters have been sent out to affected Nationwide mortgage borrowers, however details of when the change will happen and how much extra borrowers can expect to pay have not been forthcoming. Many mortgage advisers have said that people need clarity. The Mortgage Works have said the average LTV of the transferred borrowers is 50 per cent, which means affected borrowers will have various remortgage options. They have also said a range of attractive deals will be made available and some borrowers may be able to arrange a decent product transfer.
