Nationwide Interest Rate Change

jasmin10

I hav today received my letter from Nationwide advising of the new monthly payments as the interest rates were cut by 0.5% (It follows the BofE Base Rate). They have said that these new payments are from 1st Nov.

Just a curious question. As my mortgage follows the BofE shouldn't this new rate be back dated to the time when the rate was cut.

Most probably not, but as I was thinking about it this morning I just thought that it was a bit of a cheek as it was cut a couple of weeks ago and they are not changing my monthly payment til Nov and all that interest they have have since.

space_rider

My tracker with Abbey won`t change until my Dec payment. I got excited a few days ago when I got a letter from them but all they were offering me was a secured loan!

koexelek

Needless to say, these delays don't occur when the rate goes up.
They can make instant changes then :rolleyes:

bigbear1

jasmin10 wrote: »

I hav today received my letter from Nationwide advising of the new monthly payments as the interest rates were cut by 0.5% (It follows the BofE Base Rate). They have said that these new payments are from 1st Nov.

Just a curious question. As my mortgage follows the BofE shouldn't this new rate be back dated to the time when the rate was cut.

Most probably not, but as I was thinking about it this morning I just thought that it was a bit of a cheek as it was cut a couple of weeks ago and they are not changing my monthly payment til Nov and all that interest they have have since.

I got my letter yesterday too. I'm a bit confused though as we are FTB, we completed on the 17th oct, the forecast for our 1st payment was £3.00 less than the amount stated in the letter. So even though we have the 0.5 % rate cut our payment are £3.00 more....
Any ideas why?

jasmin10

Bigbear - the only thing I can think of and that if your morgage payment was the 1st of every month if could be the remainder of the difference in interest etc from 17th through til 1st. I've remortgaged with NW several times now and my first payment is always higher than the other because I have to pay for the whole month i.e. 1st Nov to 1st Dec but they also include say from today til the 1st Nov. When I did it this time round my first payment was over £900 eekkk.
I may be wrong here as I only know about my own mortgage stuff so so one else may come along with the proper explanation but that is the only this I can think of.

x

bigbear1

thank for your reply, i'm not too bothered about the £3.00 for now.... I'm still glad we took the plunge and went for it instead of waiting for the market to hit rock bottom as everyone keeps suggesting....who know the way things are going the house maybe worth £10,000 less but who says we'll be able to get a mortgage then!

We have'nt over extended ourselves as we'll be paying £200 more a month for our mortgage than would would have if we had been still paying rent.
We are now the proud owners of a lovley 4 double bed home....yaaaayyyy

x

magburner

For the cynics amingst you if you check your T&C it goes up or down on the first of the followinng month