Base Rate Cut By 1.5%

LadyIndecisive

Toughluck wrote: »

C&G state they will always be no more that 2% above base on their SVR. That is good.

I'm happy. Even though my C&G discount tracker (-0.31 below base) ends in Jan I'll revert to SVR at no more than 2% above base, which is looking to be far better than when I started the mortgage in 2007 when base rate was 5.75%.:D

Dick_here

It looks like the end of fixed rate deals at present, they're far too pricey now. If you're not on a tracker stick to the svr, you'll still be better off

GStar25

I have a HSBC Home Buyer morgage. The rate i'm currently paying is 6%. I'm still waiting for HSBC to pass on the last 0.5% cut.

They state...

"Our Home Buyer Mortgage variable rate may vary but we guarantee not to charge more than 1% above the Bank of England base rate".

So currently I am paying 1.5% above the base rate.... not happy.

sarah_elton

GStar25 wrote: »

I have a HSBC Home Buyer morgage. The rate i'm currently paying is 6%. I'm still waiting for HSBC to pass on the last 0.5% cut.

They state...

"Our Home Buyer Mortgage variable rate may vary but we guarantee not to charge more than 1% above the Bank of England base rate".

So currently I am paying 0.5% above.... not happy.

My fixed rate with HSBC finishes late January and then I'll be on the SVR. Just had 45 minutes of happiness until I read this.

Surely they HAVE to cut your rate right away if it's now more than 1% over base rate, given the quote from the terms... Have you called them?

Squish_21

Shocker!

My fixed rate finished in March so I will start hunting for a new deal in January!

At the mo I am thinking a tracker mortgage would be best!

slystryd

I'm worried.

I'm on a lifetime BoE base rate tracker with First Direct at only +0.34% (we were very lucky - 4 or 5 months ago).

This means our rate is now only 3.34%. Surely this means First Direct must now be making a loss? The LIBOR rates are higher than this by some margin.

They have, in the last couple of weeks, messed up our account and started charging us in relation to an SVR instead (and bumped UP our payments in response to the last rate cut) but claim this is a computer error. They still haven't sorted it out though, and at the moment are charging us 2% more than they should be. We're chasing it as best we can but it's got me worried.

Under our contract they have the right to "amend" the mortgage in exceptional financial situations. Could they end up arbitrarily slapping us with a higher rate than we signed up for?

sarah_elton

Squish_21 wrote: »

Shocker!

My fixed rate finished in March so I will start hunting for a new deal in January!

At the mo I am thinking a tracker mortgage would be best!

Can't you apply now? Methinks trackers will start to disappear or the terms will worsen pretty rapidly...

Gryfon

I'm confused! We've just changed to a loyalty tracker or some wording like that with Bank of Scotland. I'm hoping the payments will go down as it'll make life so much easier! Suppose it'll all wait and see. Just realised though that from our fixed rate pur payment has gone up by £150 and I forgot to budget for it...whoops!

Kingsd316

this is excellent for me, my rate is now 3.23% till january 2010, think im going to over pay for a year to bring the debt down!!

GStar25

sarah_elton wrote: »

Surely they HAVE to cut your rate right away if it's now more than 1% over base rate, given the quote from the terms... Have you called them?

I agree it seems thay have no option but to cut. I have contacted them, to be told they will make enquires. I'm not holding my breath, seems like they're trying to back-out of the guarantee they gave of no-more than 1% above base rate.