Interest Rates cut by 0.5%

sodamhall1

Check your paper work if it is a tracker product then yes your rate will fall. You may have a discounted rate witch means your paying a discount on nationwide SVR (the rate you go to after the deal) witch isn't link to the base rate nationwide can change it at any time. So say nationwide SVR is 7% and your on a discounted rate of 1% for 2years you would be currently paying 6%

Dick_here

sodamhall1 wrote: »

You may have a discounted rate witch

Ideal October money-saving then !

RavingMad

We have a HSBC tracker, does anyone know if the payments stay the same or if they recalculate the payment?

manikm

RavingMad wrote: »

We have a HSBC tracker, does anyone know if the payments stay the same or if they recalculate the payment?

HSBC do it next day!

yes, you'll be minus .5% better off

TOBRUK

I'm with Birmingham Midshires which is part of Halifax - now taken over by Lloyds. Fixed rate ended July and am now on 7.29% variable, so can anyone tell me if I will posibly see a cut in my monthly repayments?

toady

I've had a discounted SVR with Abbey for almost a year now (discount was for 2 years) but I have no idea whether that means I will benefit from the rate cut or not. This is the first mortgage I have ever had which hasn't been a tracker, never again.

RavingMad

manikm wrote: »

HSBC do it next day!

yes, you'll be minus .5% better off

In that case, is there a website where I can calulate what my new payments will be?

Mithos

TOBRUK wrote: »

I'm with Birmingham Midshires which is part of Halifax - now taken over by Lloyds. Fixed rate ended July and am now on 7.29% variable, so can anyone tell me if I will posibly see a cut in my monthly repayments?

Variable (SVR's) rates don't work quite the same as Base Rate Trackers. SVR's are based on other factors which although include base rate changes don't treat it as the most important.

As others have pointed out it depends on the bank/BS. Some will lower it to match the 0.5% reduction others maybe not as much, some might keep it the same and its even possible the SVR might increase!

All you can really do is sit tight until the effects of the base rate change take effect and the mortgage lenders decide what to do next.

manikm

RavingMad wrote: »

In that case, is there a website where I can calulate what my new payments will be?

_http://news.bbc.co.uk/1/hi/in_depth/business/mortgages/default.stm

_dave__4

Quote:
Originally Posted by RavingMad
In that case, is there a website where I can calulate what my new payments will be?

manikm wrote: »

_http://news.bbc.co.uk/1/hi/in_depth/business/mortgages/default.stm

I notice that calculator appears to assume that the balance that interest is charged on, doesn't reduce until the end of each year - so monthly payments don't immediately reduce the interest.

If your lender does reduce the balance that it charges interest on immediately, then you can try this calculator instead:-

http://calc-calc-calc.net/get/calc/Mortgage-Payment/