Base Rate Cut By 1.5%

Gryfon

I have a mortgage with the Bank of Scotland, is that covered by the HBOS drop? I'm confused!

Johnkg

Gryfon wrote: »

I have a mortgage with the Bank of Scotland, is that covered by the HBOS drop? I'm confused!

Should be. If you got the recent 0.5% drop, you'll get this one too

Gryfon

Thanks. Not sure if we got the drop as we've only just come off the fixed rate onto the tracker this month. It says we pay Bank of Scotland base rate + 1.94% I think, so if the bank's base rate is the same as HBOS then I'm happy

roddydogs

Its disgusting, what about us savers?

Dualcyclone

I'm confused now.

I received a 0.5% cut on my OneAccount a week ago, from the previous BOE rate cut, now this crops up.

Now, the news says that a lot of large banks, including RBS, are dropping their rates to follow suit - Looking at the OneAccount site now, they have changed their standard rate to 6.2%, but my rate still sits at 6.1% (I have a mortgage less than 50% of the value of my home). Thats down 0.5% as well, I imagine to cooinside with the same BOE rate cut from 6 months ago.

How long do you think until we see this cut crop up in our rates? 1.5% cut will certainly help me out over xmas, and definately on bills that seem to be increasing!!

Anyone else with a OneAccount feeling a bit hard done by?

koexelek

Most lenders have said they will pass it on 1st December

tightperson

guidarufino wrote: »

We have our mortgage with a very random, small and old fashioned building society, the Penrith. It was an absolute nightmare getting the mortgage but we went for it because the arrangement fee was tiny and we got a substantial discount on their SVR for 5 years with no tie ins. But I haven't heard a sausage from them since the last rate cut and I'm just hoping they'll drop their SVR following this cut. I've called them and they say the board meets in the middle of each month to decide what their SVR should be. I remember asking them if the offered any guarantee re their SVR relative to the base rate but they gave me a pretty wishy washy answer. It was a great deal at the time but if they don't pass the cuts on, we're a bit stuffed really. I think there are penalties if we leave within 12 months and we only took the mortgage on in May and obviously changing mortgages is very difficult and costly now so... :eek:

Does anyone know whether small building societies like this tend to pass cuts on or not?

I know exactly how you feel, we are with Saffron & Walden, have been for a few years as they were very competitive at the time. I just missed transferring to a good tracker with them in Feb 08 when our discounted rate ended. The credit crunch started and they pulled their trackers the day before I was due to sign so now we are stuck on their SVR. So far with the three rate cuts so far this year 0.25% cut, NONE, 0.5% cut, 0.25% CUT, 1.5% cut, still waiting to hear. I recon they will only cut it 0.75%. I am kicking myself I just missed the First Direct fee free tracker a few weeks ago. At least we have no ties and are ready to jump whenever the next good offer is on.

como_setas

What about those poor sods who have just fixed thiers for 5 years?

Baz_2

como_setas wrote: »

What about those poor sods who have just fixed thiers for 5 years?

Do you really think rates are going to be 3% for the next 5 years?

LouBlue

marshallka wrote: »

Northern rock have dropped theirs now to 5.84% giving the full 1.5%..

RBS are passing on the full cut of 1.5% to standard variable rate mortgages - from 6.69% to 5.19% - taking effect on 1st December.

Relief.