Bank of Ireland frees 1,200 mortgage holders from rate rise The second group of around 200 customers are those who switched their mortgage to a base rate tracker. These customers received information saying the differential was variable but did not outline the circumstances under which it might change. Des Crowley, chief executive of 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 said it had written to these customers to tell them they will no longer face higher rates. The decision still means more than 12,000 customers face a steep rate rise - after believing their rates would stay low because they were linked to the Bank of England rate, currently 0.5pc. A typical change has seen a buy-to-let mortgage holder previously on a rate of 2.25pc - made up of the base rate plus 1.75pc - rise to 4.99pc, representing the Bank rate plus 4.49pc. For residential customers, changes will be introduced in two stages. From this month, they will pay the Bank rate plus 2.49pc. On October 1, it goes up to Bank rate plus 3.99pc - currently 4.49pc. Bank of Ireland blamed the rise on increased funding costs and the need for banks to maintain greater levels of capital. It has set up a phone line for anyone worried about the impact of the changes (0800 345 7512). It said customers were free to move to other providers and that no early repayment charges would apply. Most of those affected had buy-to-let loans. The bank said the Financial Conduct Authority (FCA) was "supportive of our approach in excluding these customers." Which? executive director Richard Lloyd said: "These customers should not have been subject to the price hike in the first place and this announcement just shows that Bank of Ireland did not properly review who it could be applied to. Bank of Ireland should now re-examine the position of all customers affected by the rate rise - especially those who were sold a 'lifetime tracker' - and we hope the Financial Conduct Authority will monitor this. Customers who feel they've been unfairly treated should continue to complain. Andrew Tyrie MP, chairman of the Treasury Select Committee, wrote a letter to Martin Wheatley, chief executive of the Financial Conduct Authority (FCA) expressing his concern at the decision. Mr Wheatley said the regulator did not plan to take any action against Bank of Ireland over its rate hike.