Abbey - why do I have to wait so long for my .5%?

simonpearce

Spoke to Abbey today to find out when I could expect the .5% rate reduction and they said it won't take affect until the 3rd of the following month (November) and as I pay my mortgage on the 1st (like most people I would imagine) I won't see the first reduction until December!

Is this fair?! Do the Abbey use the 3rd on purpose to make maximum profit?

.5% rate cut - and I don't get to see it for two months!!!

Sun

Are you on BOE rate tracker mortgage?

Locoblade

If you're on a tracker I'd assume the same happens if rates go up? If so, then swings and roundabouts, you benefit if there's a rise but lose if there's a drop.

_Andy_

simonpearce wrote: »

Spoke to Abbey today to find out when I could expect the .5% rate reduction and they said it won't take affect until the 3rd of the following month (November) and as I pay my mortgage on the 1st (like most people I would imagine) I won't see the first reduction until December!

Is this fair?! Do the Abbey use the 3rd on purpose to make maximum profit?

.5% rate cut - and I don't get to see it for two months!!!

Of course they want to maximise profit - that's what they're there for.

The T&Cs of how they react to base rate changes would have been detailed in your mortgage KFI and offier.

space_rider

I`m the same but it does say in the T&C that it takes effect from the next month.

lisyloo

Is this fair?!

It might not be fair, but it was almost certainly available information when you took the deal. You are meant to read the documents and reject them if the deal doesn't suit you.

So perhaps learn a lesson from it and read the documentation carefully next time.
These days it's all neatly summarised in plain english in a few pages of "Key Facts" information so you don't need to wade through loads of small print.

I would certainly suggest that you acquaint yourself with any contract you sign up to UP FRONT in future, otherwise you risk having the same experience.

Ian_Griffiths_Halifax

Although you won't see a reduction in your payments until the payment due in December, you will be charged the new rate from 3rd November. So you'll only be paying the 0.5% higher rate than most other Base Rate Tracker borrowers for 2 days.