standardlife not cutting rate inline with boe

nessie2665
nessie2665 Posts: 11 Forumite
in Mortgages & endowments
:mad: I am furious today to get a letter from standardlife who i only changed to last year after being with the abbey for 7 years, saying that they have decided due to significant changes to the mortgage market in recent months, will not be lowering their standard variable rate in line with the bank of england decrease of 0.25%. this to me would have meant £50 per month better off to pay fuel bills, which is why i thought the bank of england decided to drop it again as people are struggling financally. I presume standardlife cant give away mortgages as easily due to tightening credit lending rules, and the fact they need to pay their fuel bills and top up the xmas party funds and their big fat cat bonuses. what do you think and can we do anything about it, :confused: why wont they pass on the savings? denise:mad:

Comments

  • Datasafe_2
    Datasafe_2 Posts: 155 Forumite
    nessie2665 wrote: »
    :confused: why wont they pass on the savings? denise:mad:

    Because the banks are in deep poo financially and have to make money from somewhere - your're it as they say.

    There is a rumour going around that there is an emergency BoE meeting because another bank is in trouble. NR all over again?
  • UK007BullDog
    UK007BullDog Posts: 2,607 Forumite
    First Post First Anniversary Combo Breaker
    Datasafe,

    Really? Would not surprise me. RBS have pulled their 100% product as I have suspected the other banks will follow. A friend of mine said that something is going on with a high street lender but I cannot yet elaborate on it as not got details.

    HBOS has some problems as well: http://www.mortgagesolutions-online.com/public/showPage.html?page=703390
  • Datasafe_2
    Datasafe_2 Posts: 155 Forumite
    Another possibility is that they are discussing an emergency rate cut :confused: , but why would they consider that? Everyone knows the economy is sound under Labour :rolleyes: Low unemployment, low interest rates ect ect ( their words not mine )

    I really hope its not Halifax, I got a lot of money there.
  • lisyloo
    lisyloo Posts: 29,609 Forumite
    Name Dropper First Anniversary First Post
    why wont they pass on the savings?

    Hello denise,

    I'm wondering why you got a rate tracking Standard Life's SVR and why you didn't get a mortgage tracking the Bank of England rate.

    You appear to have chosen a product that doesn't meet your needs because it comes across as though you want to track the BOE rate but you didn't chose one of those.
  • dunstonh
    dunstonh Posts: 116,298 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    As mentioned on another thread made today, SL do not follow the BoE rate. They use LIBOR.

    if you wanted a BoE tracker then you should have bought one. Not one that tracks LIBOR.



    edit: argh. LL beat me to it just ;)
    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.
  • nessie2665
    nessie2665 Posts: 11 Forumite
    you are quite right, my previous one was a base rate tracker, but my finacial advisor gave me this product called freestyle, at the time i changed over i was so desperate to lower our monthly outgoings i just presumed it was the same type of mortgage. i also presumed that svr with any other bank would also go down with the boe base rate . and to think i paid a lot in the way of an arrangement fee , i wish i hadnt bothered. denise
  • nessie2665
    nessie2665 Posts: 11 Forumite
    :rolleyes: you are quite right, my previous one was a base rate tracker, but my finacial advisor gave me this product called freestyle, at the time i changed over i was so desperate to lower our monthly outgoings i just presumed it was the same type of mortgage. i also presumed that svr with any other bank would also go down with the boe base rate . and to think i paid a lot in the way of an arrangement fee , i wish i hadnt bothered. denise
  • nessie2665
    nessie2665 Posts: 11 Forumite
    hi what is libor thanks, never heard of it, so what is the best type to go for. and why do we never hear of libor on news etc
  • Datasafe_2
    Datasafe_2 Posts: 155 Forumite
    UK007BullDog wrote: »
    Datasafe,



    HBOS has some problems as well: http://www.mortgagesolutions-online.com/public/showPage.html?page=703390

    I have done some digging and HBOS is being mentioned as a possibility.
  • poppy10_2
    poppy10_2 Posts: 6,575 Forumite
    Name Dropper First Post First Anniversary
    Alliance & Leicester is the most likely candidate
    poppy10
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