Base Rate Cut By 1.5%

Lunar_Eclipse

GStar25 wrote: »

"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.

Have you notified them that they are breaching their own terms & conditions? Can't see them not rectifying it tbh if you have this in writing.

Lunar_Eclipse

Bozzy20 wrote: »

My fixed rate period expires early next year and due to the cuts I am keen to take out the best deal and "fix it" for as long as possible. Why are some people keen to take out trackers? The trackers could go up when then rates go up which will happen eventually so is it better to fix it at low rates for as long as possible???

Boz

I think it's because firstly rate rises are not expected anytime soon. Plus fixed rates have not been comparatively competitive for a few months now - eg fixed rates with my lender are above their SVR and with seriously huge entry fees! Hence trackers being flavour of the moment.

ceebeeby

Just phoned NR - apparently there's a cut coming for SVR customers in December, but she couldn't tell me what it was (this is linked to last months 0.5% reduction), they're going to post out a letter.

There's been no decision yet regarding linking any further reductions to this latest base rate cut - she said it'll probably take a couple of days for them to decide .... !

Locoblade

Bozzy20 wrote: »

My fixed rate period expires early next year and due to the cuts I am keen to take out the best deal and "fix it" for as long as possible. Why are some people keen to take out trackers? The trackers could go up when then rates go up which will happen eventually so is it better to fix it at low rates for as long as possible???

Boz

Fixed rates haven't and are unlikely to come down significantly in the near future. Search on here for "LIBOR" for more in depth info, this is the rate that fundamentally determines mortgage lending rates, not the BoE base rate any more. LIBOR is high because banks are still nervous about lending to EACH OTHER, hence mortgage rates stay high.

That said, unless you're in a position to reserve a tracker literally in the next few hours, you're unlikely to benefit hugely because the banks will no doubt withdraw their current offers and raise their new offerings to compesate for the low BoE rate.

jrfarrim

Am I right in thinking the Nationwide SVR can't be more than 2% above the BOE base rate. Meaning we'd be guarenteed a rate reduction from 6.19% to Maximum of 5%?

Cheers
J

Jvic28

mr_mortgage wrote: »

Call them for sure ... can't hurt.

7.45% is pretty high - perhaps it would also be worth shopping around, if only so you have something to arm yourself with them you talk to Leeds BS.

You might be best to wait a day or two to see if Leeds drop their SVR (and by how much), since you may just automatically benefit from that.

Thanks. I've got bad credit which is why my interest rate is high and I'm tied in with early repayment charges so can't really shop around.

How do I find out if their SVR is reduced. I've tried looking on their website but can't seem to find anything.

ajaxgeezer

Jvic28 wrote: »

Thanks. I've got bad credit which is why my interest rate is high and I'm tied in with early repayment charges so can't really shop around.

How do I find out if their SVR is reduced. I've tried looking on their website but can't seem to find anything.

.....remember what it is now, and check the site every couple of days over the next week or two. That's about all you can do really.

koexelek

I am currently being bombarded with e-mails ( as I am sure are my fellow brokers) with lenders withdrawing their trackers with immediate effect:eek: :rolleyes:

payless

koexelek wrote: »

I am currently being bombarded with e-mails ( as I am sure are my fellow brokers) with lenders withdrawing their trackers with immediate effect:eek: :rolleyes:

getting more from clients asking about their term trackers I arranged

minimike2

Yes indeed...

There goes Skipton...

There goes Woolwich...

Whos next?