First Direct - Savings % drop but mortgage SVR remains

officetrolley

I had a nice notification from First Direct this morning to say that they're dropping their rate for savers by 1.5% as from today.
Yet there's still no mention about what they plan to do with their Std Variable Rate on mortgages and when that might happen.

biggaz26

Unfortunately they are not under any obligation to reduce the SVR on mortgages. It's just another example of greedy banks and incompetant governments.

Situations like this one where an interest rate cut was made to help the general population has been hijacked by big business for profit.

Similar situtaions can be found everywhere. Oil prices have fallen almost 50% since the highest point but petrol prices have fallen nowhere near that. Gas and electric wholesale prices have fallen but the end users are still paying the higher costs and probably will be for sometime as the energy companies make extra profit out of it.

The only way to deal with it is to keep highlighting it to those who can change it. Unfortunately it seem the only people who can are those who run the companies that are making the money.

Off soap box rant over!!!!

lotsmorewine

I've been with First Direct for years and have always found them fair and very efficient; but I'm very disappointed by their failure to respond to the dramatic change in mortgage rates. I could understand them taking a couple of days to consider their response to the surprise base rate cut, and I'm glad that they haven't responded to Gordon Brown's bullying. But it's been 8 days now; what is going on?

apt

What's it got to do with the government? HSBC is a private company and hasn't taken government money for preference shares. They got a lot of mortgage custom earlier in the year offering to match some expiring rates. That looks a very smart move now and probably means they don't need to go after many mortgage customers at present by matching the base-rate cuts.

ShelfStacker_3

To wit; IIRC, most (97%) of HSBC/first direct's customers are on fixed or tracker rates. Fixed people wouldn't lose if the rate went up, so they can't complain about the rate going down, and tracker rates will go down anyway. The 3% might consider looking at remortgaging.

This said, FD/HSBC aren't a charity. They are free to do as they please, and given the poor state of most of their competitors it seems that has worked out well for them so far.

Where I WOULD think they're taking the p*ss is on the HSBC Flexible Saver. 0.2% AER on balances up to £10k... christ.

poundsaver

Just received a letter today saying that FD were dropping their SVR to 4% implementing the full 1.5% cut. Whoopee!! :j

NathRSW

Hi Poundsaver

Hope thats true as im on a first direct SVR. Ill be looking forward to checking the post when i get back from work

lopbri

Strange, just phoned them and they said their SVR was still 5.5%, although it is under review

poundsaver

Hi lopbri, just re-read my letter to make sure.

"the rate on your offset Mortgage, together with any accounts linked to it, has reduced from 5.50% p.a. to 4.00% p.a. This change was effective from 06/11/2008."

Letter was dated 12 November. Hope everyone else gets the same letter.;)

lopbri

Well gave them another call, cs still telling me offset and linked accounts at 5.5%, they must like you;)

NathRSW

Hi there

Just to confirm, I have also had the same letter as poundsaver from Firstdirect confirming that my variable offset mortgage interest has changed from 5.5% to 4% effective from the 6th Nov.

Great news