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Greedy Barstewards at HSBC pass on none of the Feb Rate Cut
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michaels
Posts: 29,122 Forumite
HSBC have passed on less of the recent rate cuts than any of the other 'big 4' banks and have done it again by not passing on any of February's rate cut (possibly the only bank not to cut all?). So they have gone from having a historically competitve SVR (which they always liked to point out when touting for new business) to one that is now nearly 1% above the market leaders like Nationwide. I guess they tried to sneak out the announcement today along with thier profit figures in the hope of avoiding the negative publicity.
They have passed on the cuts in full to their savers and swap rates have not increased that much since the bank of Enland started cutting rates in October so the difference between the reduction in base rates of 4.5% and the reduction in the HSBC svr over the ame period of 2.31% is thus all profiteering at the expense of their borrowers.
They have passed on the cuts in full to their savers and swap rates have not increased that much since the bank of Enland started cutting rates in October so the difference between the reduction in base rates of 4.5% and the reduction in the HSBC svr over the ame period of 2.31% is thus all profiteering at the expense of their borrowers.
I think....
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HSBC were in the news today. Victims of the Credit Crunch................................I have put my clock back....... Kcolc ym0
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Robert_Sterling wrote: »HSBC were in the news today. Victims of the Credit Crunch.
Like I said - good day to cover up the fact that you are the only bank not passing on any of the Feb rate cut. After all 6bn profit is a lot more than the huge losses announced by Lloyds banking group and RBS and yet both these bamks felt able to pass on some of the cut to their borrowers as well as their savers...I think....0 -
Robert_Sterling wrote: »HSBC were in the news today. Victims of the Credit Crunch.
My heart bleeds for them....I am a Mortgage adviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I've been getting the full cut from HSBC - I guess you just need to get a better deal from them.0
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thescouselander wrote: »I've been getting the full cut from HSBC - I guess you just need to get a better deal from them.
You'll get that on the older SVRs and trackers.0 -
Yeah - 2 svrs as they originally had a kite standard which means max 1% above base but only for those with them prior to about 2002? so not really an svr at all but in effect a 1% tracker. Everyone else has seen the spread go from 1.25% to 2.94% in a few months whereas libor spreads (cost of funding for HSBC) has barely changed in that period...
Lets do some sums - if HSBC had 500,000 borrows with average loan size 100k with rates on or linked to the SVR they have increased their profitability by £845m pa at an average cost to each customer of £1,700 pa - and people get upset about utility companies making profit of less than 100 quid per customer per yearI think....0 -
As most people in the country hold HSBC shares either indirectly or directly then I would prefer they kept their SVR mortgage rate higher
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
I believe Abbey didn't pass it on as well, SVR of 4.69%This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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Better get used to this. The face of banking will change.
It will not be long and we will be paying for our banking. The banks will hit back with SVR's, higher rates and fees to get what they have lost, both on mortgages and day to day Banking.
You could also argue that HSBC being head strong is why we have not bailed them out! They have lost money in the US big time, but are in profit in the UK.
Brokers will know that last year they were taking business away from the other big lenders going direct and pushing rates and products."Banking establishments are more dangerous than standing armies." Thomas Jefferson
"How can I believe in God when just last week I got my tongue caught in the roller of an electric typewriter?" Woody Allen
Debt Apr 2010 £00
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