HSBC Lifetime Tracker BofE Base Rate _ 0.48%

bigtired24

I have a HSBC lifetime tracker of BofE base rate + 0.48%.

I understood that they have to reduce or increase my rate as the BofE base rate moves.

Am I wrong? Can they wriggle out of this?

Advice appreciated

Justin

Locoblade

You're right if its a BoE tracker, your rate will drop to 3.48%

eslick

it will reduce and could fall further if rates fall again, but you might have a limit on the amount that it can drop to before you wont see a fall. A lot of banks have a limit of 2 -2.75%

_Andy_

HSBC doesn't have floors - well at least doesn't on my 0.89% above base.

In response to the OP - yes it has to move up and down according to BOE base rate.

karie

is there definitely no collar? mine is 0.89% above BOE rate too, i was thinking of giving them a call next week to ask...

karie

Sun

Read following threads created today:

http://forums.moneysavingexpert.com/showthread.html?t=1267965

http://forums.moneysavingexpert.com/showthread.html?t=1268207

_Andy_

karie wrote: »

is there definitely no collar? mine is 0.89% above BOE rate too, i was thinking of giving them a call next week to ask...

karie

Assuming you're on Plus account tracker?

I queried it via Internet Banking the other week - here's my response

"Dear Mr X

Thank you for your email

The difference between the Tracker rate and the Base rate would be maintained. There are no limits beyond which this will not apply.

Kind Regards

XXX
Mortgage Operations"

RFU

I have a similar thing with Barclays (Woolwich). Im on a base rate tracker. Cant remember the exact percentage above the base rate of Bank of England, but I was told basically if the rate falls, so does my mortgage. If it goes up, so does my mortgage. If the banks are dragginging their heels by cutting rates and some people say that it wont be the full 1.5%. Would I have a case against my bank if that was the case???

udydudy

RFU wrote: »

I have a similar thing with Barclays (Woolwich). Im on a base rate tracker. Cant remember the exact percentage above the base rate of Bank of England, but I was told basically if the rate falls, so does my mortgage. If it goes up, so does my mortgage. If the banks are dragginging their heels by cutting rates and some people say that it wont be the full 1.5%. Would I have a case against my bank if that was the case???

If your rate is a tracker to BoE rate without any collar then it would track the bank of england rate no matter what until atleast 0%. i.e if you are amongst the lucky few who have the Boe less a percentage (-0.21% like mine or -0.31% like halifax offered). obviously they aint gonna pay me 0.21% if Boe goes to 0%(God Forbid!! it would be disaster for all of us)


Many banks have collars
i think nationwide is 2.75% which means if BoE goes below that when your rate hits it thats where it stops.

RFU

Thanks for the info udydudy

I have just browsed my motgage statement that I got the other week ( I knew it would come in use) and wondered why even though the rates have dropped, my payments remained the same. Well after browsing these wonderful forums, I have since learnt that I wont benefit the new rate until next year when I get my new statement in Oct 2009. Didnt know this. Was expecting to see the benefit next month. Oh well, better in my pocket than theres. £40 better of from Oct

karie

_Andy_ wrote: »

Assuming you're on Plus account tracker?

Hi Andy - yea it's a Plus Account tracker. Thanks for the info, much appreciated!!!

karie