"Bank Base" mortgage rate delay

Mr_M_7

Hi - I took out a tracker mortgage with Natwest earlier this year as Northern Rock fixed was not replaceable!

UK Bank of England rate went down in early October - only my tracker tracks the NatWest Bank Base Rate - which was only adjusted downwards on the 1st of November.

As my mortgage is calculated on a daily basis and then collected monthly in arrears I reckon the bank has made a good spread out of me for nearly a month! :mad:

any observations or comments? oNly hope the rate keeps tracking down!

lisyloo

Mr_M wrote: »

any observations or comments?

Well you might not like it, but................

You need to read your key facts documents and offer up front to know what you are signing up to.
The key facts are in very plain english and quite short and clear, so no-one can complain it's in the small print or jargon.

The deal you've signed up to would have been plain in the documents you've received up front, so it's worth spending 15 minutes checking this.

I am going with FD and they change the rate the next day.

_Andy_

This is the risk you take by not taking a tracker that directly tracks the base rate. Yes it's annoying but they're well within their rights.

Mr_M_7

thanks guys - I would consider myself 'reasonably' financially aware - I am surprised that they have 'stitched me' after all they are not a small untrsuted name - god help people who are less aware than I am !

Any chance of claiming I was mis-sold or not informed !! prob not!

_Andy_

None at all - why would there be?. And you weren't 'stitched up' in any way.

minimike2

:rolleyes:

koexelek

There is a general technical issue with most lender's systems.

Although they can implement a rate rise within seconds, a cut cannot usually be implemented until the start of the next calendar month:rotfl: :rolleyes:

Mr_M_7

"None at all - why would there be?. And you weren't 'stitched up' in any way." - - well it feels I am being disadvantaged !

lisyloo

Can you explain why you were disadvantaged when the information was provided up front?

If you have written evidence of a different deal, then yes you have been stitched up and you can challenge it by going through the lenders complaints procedure.

If you failed to read it or failed to understand the implications, then I'm afraid that this is your responsibility and you can't blame anyone else.

_Andy_

Mr_M wrote: »

"None at all - why would there be?. And you weren't 'stitched up' in any way." - - well it feels I am being disadvantaged !

I shouldn't bite but - you state earlier you're "reasonably financially aware". However - you would have been given a KFI at application and offer stage which explicitly set out the key points of the mortgage agreement, including explicitly stating how the mortgage interest was charged/tracked.

I'm guessing you may have made an assumption that it would always exactly track BOE base rate.

This is your own responsibility and error, no-one elses. There is no 'mis-sale' (I do dislike the way everyone who takes a product then changes their mind about it uses that phrase - perhaps we can thank the 'consumer revenge' concept for that) and to re-iterate, you were not 'stitched up' in any way.

silvercar

Mr_M wrote:

UK Bank of England rate went down in early October - only my tracker tracks the NatWest Bank Base Rate - which was only adjusted downwards on the 1st of November.

I read it that OP was complaining that he had a base rate tracker, but the adjustments are only made at the start of the month rather than when the base rate moved.

If this is so, you could be on a winner when rates go up, as your rate won't be changed until the beginning of the next month.