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Standard Life Decision on Nov & Dec SVR mortgage rates (-0.8%). IS THAT IT?!!!
poundstretcher1234
Posts: 5 Forumite
As we all know, the Bank of England reduced their rates by 1.5% in early November, and a further 1.0% in early December :T .
I hold a Standard Variable Rate 'Freestyle' Mortgage with Standard Life and up until yesterday, I havent received ANY form of communication from them regarding even the slightest HINT of a reduction. So I kicked off with them by e-mail on Friday 5th (obviously this is relevant cos it lays out my argument):
____________________________
Dear Sir/Madam,
I currently hold a SVR 'Freestyle' Mortgage with you and I have a question concerning the interest rate cuts.
Since the announcement of the 1.5% BoE rate cut back in early November, I have not received any form of communication from Standard Life (SL), with guidance as to how much of a reduction we are likely to receive. I have waited for one month now and during that time, a mortgage payment has left my account, without any decrease whatsoever.
I visited the BBC News website today and reviewed a table entltied 'How Mortgage Lenders Responded' (...to the November rate cut) and found that SL were the ONLY lenders who so far have not made a decision on the FIRST rate cut leaving, customers dangling and (by default) forcing them to continue paying the same higher rate.
Having now learned that the Bank of England has cut interest rates AGAIN, by a cumulative total of 2.5% since early November, I assume that:
SL will detail how much will be reimbursed from the November payment, in light of the fact that the installment amount was 'under review' when payment was made.
If someone could get back to me regarding the above, I would be very grateful.
Regards,
'etc etc etc')
__________________________
I received a response to this yesterday:
__________________________
Dear *******,
Thank you for your feedback this has been passed to the relevant department.
Standard Life Bank can confirm that, after reviewing our rates for savers and borrowers following the Bank of England rate decreases in November and December,Our mortgage Standard Variable Rate will be reduced from 6.59% to 5.79% with effect from 31 December 2008.
Regards
********
______________________________
So basically, they're reducing the rate by 0.8% (the LOWEST amount I've seen so far) out of 2.5%, AND making me pay full whack for November AND December, as my next payment after this won't be until the 18th January. You'll also notice - they didn't respond to my 'reimbursement' point!
How can they do this?! Every other lender made their minds up WELL in advance of this, in order to pass on their much higher reductions to customers by (at least) the December installments!
IS THERE ANY ADVICE OUT THERE FOR FURTHER ACTION?! I SERIOUSLY WANT TO TAKE THIS FURTHER BUT WOULDN'T MIND SOME LIGHT SHED!
Thanks!
Mike
I hold a Standard Variable Rate 'Freestyle' Mortgage with Standard Life and up until yesterday, I havent received ANY form of communication from them regarding even the slightest HINT of a reduction. So I kicked off with them by e-mail on Friday 5th (obviously this is relevant cos it lays out my argument):
____________________________
Dear Sir/Madam,
I currently hold a SVR 'Freestyle' Mortgage with you and I have a question concerning the interest rate cuts.
Since the announcement of the 1.5% BoE rate cut back in early November, I have not received any form of communication from Standard Life (SL), with guidance as to how much of a reduction we are likely to receive. I have waited for one month now and during that time, a mortgage payment has left my account, without any decrease whatsoever.
I visited the BBC News website today and reviewed a table entltied 'How Mortgage Lenders Responded' (...to the November rate cut) and found that SL were the ONLY lenders who so far have not made a decision on the FIRST rate cut leaving, customers dangling and (by default) forcing them to continue paying the same higher rate.
Having now learned that the Bank of England has cut interest rates AGAIN, by a cumulative total of 2.5% since early November, I assume that:
A) an amendment letter will be sent from SL, BEFORE my NEXT mortgage payment,
SL will detail how much will be reimbursed from the November payment, in light of the fact that the installment amount was 'under review' when payment was made.
If someone could get back to me regarding the above, I would be very grateful.
Regards,
'etc etc etc')
__________________________
I received a response to this yesterday:
__________________________
Dear *******,
Thank you for your feedback this has been passed to the relevant department.
Standard Life Bank can confirm that, after reviewing our rates for savers and borrowers following the Bank of England rate decreases in November and December,Our mortgage Standard Variable Rate will be reduced from 6.59% to 5.79% with effect from 31 December 2008.
Regards
********
______________________________
So basically, they're reducing the rate by 0.8% (the LOWEST amount I've seen so far) out of 2.5%, AND making me pay full whack for November AND December, as my next payment after this won't be until the 18th January. You'll also notice - they didn't respond to my 'reimbursement' point!
How can they do this?! Every other lender made their minds up WELL in advance of this, in order to pass on their much higher reductions to customers by (at least) the December installments!
IS THERE ANY ADVICE OUT THERE FOR FURTHER ACTION?! I SERIOUSLY WANT TO TAKE THIS FURTHER BUT WOULDN'T MIND SOME LIGHT SHED!
Thanks!
Mike
As a Standard Life SVR customer, are YOU happy with their recent 0.8% rate cut? 4 votes
Yes
0%
0 votes
No
100%
4 votes
Kind of in the middle
0%
0 votes
0
Comments
-
I invite you to join on this thread
http://forums.moneysavingexpert.com/showthread.html?t=1333943
There are more of us disgusted by Sub-Standard Life:mad:0 -
Yes, I too am fuming about this - SL's svr mortgage at 5.79% is now one of the highest if not the highest in the market. But what can we do - switching to another lender I suspect would be very difficult in the current climate and those lenders who have cut their rates by the full 2.5% (eg Nationwide, LloydsTSB etc with a SVR of 4%) are no longer offering normal SVR mortgages - just fixed rate deals starting off at similar rates as SL.
Looks as if we may be stuck with it - could write to Gordon Brown I suppose, after all he has saved the world maybe he'll save us as well. In my case the saving would be about £200 a month!!
Sad to note that only 3 people art from me have voted in the poll.
Graham0
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