Cheshire SVR - Anyone else in same boat?

DigitalJedi

Hi all

I'm on a discounted rate mortgage with them at the moment. Given like most banks/building societies they failed to pass on the earlier 0.5% cut, I'm especially annoyed that they seem to be dragging their heels at making a decision as to whether they pass last week's 1.5% through.

Their SVR at the moment is 7.1% which frankly is taking the pee, when the BOE rate is 3% and even the Libor rate is much lower. Most other banks seem to be cutting (albeit reluctantly). I simply don't see how they can defend a rate of 7.1%!

Is anyone else in the same boat? I tried calling them but seems their staff have just been given stock answers. I suspect many others like me have rang.

Is there anyone we can complain to?

matt83uk

Pass on? Is the Cheshire borrowing money from the BoE against its mortgage related securities? No..

You can't expect bank to follow the BOE unless it was explicitly agreed, I just don't get most of this forum and the spin that the newspapers show. Banks don't borrow from the BoE and the cost of credit is much higher than the BoE. It also depends on what stratedgy the bank has opted for, perhaps it's locked into credit over a longer term before the rates fell etc.. Perhaps with the higher rate of defaults the overheads of mortgages are significantly higher so cost is shared.. someone pays somehow. You can't also just point at some LIBOR rate neither and say we'll that's at 5.5%, what is the cost of your mortgage to bank? the risk? etc..

RichardCag

I assume that the Cheshire will be passing the rate cut to it's savers?

Seem like it's always the customer that pays in the end!!!

Janie2008

I'm with the Cheshire but unfortunately have a fixed rate. Come 1st January following their takeover by the Nationwide you will have a big cut in interest rates. Your discount will at that point be related to the Nationwide's SVR, which at 4.7% is 2.4% lower than the Cheshires, so a cut of 2.4% on your current rate. This info is on their website and was recently sent out to borrowers.

Peelerfart

And let's be honest ,the Cheshire aren't being taken over because they were the best !. But I'm biased , I left them early this year disgusted at their customer service.

Nice staff, rubbish organisation (IMHO)