Coventry BS still not acting on 0.5% interest rate cut

sightunseen

Over a week after the bank of England cut interest rates by 0.5% and still no news from my mortgage lender. I have called and email and no one there can tell me WHEN OR IF they will reduce their rates at all.

I wonder how much money they have made by delaying any cut by this amount of time. So much for TLC not PLC.... Seems that the greed is in the building society market as well as the PLC market:mad:

wisbech_lad

As a building society, most of their money comes from depositors. If they reduce their savings rates, they won't have money to lend you, because the depositors will move to other BS. AFAIK, BS deposit rates aren't coming down, and until they do, I can't see that they will reduce mortgage rates too much.

lisyloo

It's amazing how many people are willing to blame someone else for their decisions.

YOU decided to go onto the Coventry rate and not the BOE rate.
I presume you didn't have a gun held to your head at the time?

If you wanted to go onto the BOE rate then why didn't you do that?
It's was your decision so accept responsibility for it.

AdrianHi

It completely depends on where the original funds for your mortgage came from at the time you took it as to where your interest rate will go.
Did it come from depositors, the money market, the Bank of England or a mixture of 2 or 3 of those?
You may not know the answer to that.
I assume funding from mine came from the Bank of England since my deal is a Bank of England rate +0.59% tracker so I should see my rate drop to 5.09%. You cannot get the deal I'm on now anymore.

silvercar

When I took my mortgage with Coventry they offered B0E base rate trackers and their own trackers. They explained that historically their own rent tended to follow the BoE rate but there was no guarantee that it would do so consistently in the future.

That said, it is still early days. I'm on the BoE base rate tracker (+0.75%) and they haven't written to me with details of the new payments. So even though I know the rate will come down I haven't had notification, so I wouldn't expect anyone else to have letters yet.

Incidentally my NatWest base rate tracker mortgage letter hasn't arrived either, so the banks are just as slow as the building societies. tlc or plc.

sightunseen

My point was, that the Coventry have not made a decision NOR communicated when they are likely to. The longer they leave it, the more money they make. For me, it is a question of customer service. When the rates went up, I had a letter within the week. That is why for me it is more PLC than TLC with the Coventry.

lisyloo

sightunseen wrote: »

My point was, that the Coventry have not made a decision NOR communicated when they are likely to.

They are not obliged to do either.

Perhaps they aren't going to lower rates at all.
Perhaps they haven't made a decision yet, or decided when they will make a decision.

Sorry but I can't see what you have to complain about.
It's only about a week since the rate cut.

But if you don't like them then why no vote with your feet and go elsewhere?

silvercar

If you had gone with a BoE tracker you would know your rate was dropping; if it was so important to you why didn't you pick a BoE tracker?

Why not phone them and see if you can transfer to a BoE tracker rate, presuming you are out of any fixed term?

Bernard_Coleslaw

sightunseen wrote: »

I wonder how much money they have made by delaying any cut by this amount of time.

I would guess "none at all" would be the answer to this, given that they haven't reduced savings rates yet. My experience with them is that they always move savings and mortgage rates at the same time (normally 1st of the month following the base rate decision?) regardless of whether things are going up or down.

kje_2

I'm on a Coventry Building Society Bank Of England +0.75% tracker. The conditions state that the rate is reviewed on the 15th of every month. Maybe, they review all of their mortgage products on the same day ? If they reviewed them last Wednesday then they've got to print and distribute letters, so expect something this week.

mystic_trev

sightunseen wrote: »

That is why for me it is more PLC than TLC with the Coventry.

Looks like they've sent you to Coventry :rotfl: