Tracker mortgage - rate going down?

dannyboy83

Hi all,

I recently got a Tracker mortgage with Lloyds TSB - this was a renewal after my 3 year fixed rate at a nice and low 4.3% came to an end

Anyway, this all went through in September and the terms were: 0.89% above the BOE base rate, which was then 5%.

Does the recent drop in interest rates mean that my new rate will be 5.39 (4.5% + 0.89%) ?

Not had any letters yet about this. I'm kinda hoping my "gamble" on a tracker mortgage will pay off... it's a 2 year tracker.

It also seems that we were very lucky with timing, as the new rates and product fees are huge - I feel very sorry for anyone who is renewing or first time buying now.

Cheers! :beer:

Locoblade

dannyboy83 wrote: »

Does the recent drop in interest rates mean that my new rate will be 5.39 (4.5% + 0.89%) ?

Yep, it will drop to 5.39%

daveyjp

You should get a letter, but the date of the change in base rate is usually important for when the reduced payments will kick in. Before a trigger date the reduced rate will kick in the month after, after this date it will be after the month after the next.

dannyboy83

Just to report... I got a letter over the weekend, and it kicks in with my November payment.

Nice bit of news, it's gonna save me about £40 a month ish.