Alliance & Leicester SVR concern

fusar

I have sent an e-mail to the FO, I hope other people do too.

:-)

matt83uk

Given that the government saw fit to bail the banking system out to the tune of billions of pounds (of tax payers’ money), I find this reduction totally unacceptable,

Guys, the government didn't bail out Santander. Playing devil adovacate here's but perhaps this conservative action is why Santander is in its position (admittedly they have gone for a rights issue though), further because of affordability studies perhaps A&L mortgage portfolio is more risky than Abbey thus they've took this opportunity to reign in the margins a bit more especially as 2009 defaults are likely to increase and house values fall significantly.

I have an A&L mortgage and im not happy about the rate cut, but before drafting these e-mails it perhaps would make sense to get all the facts right, rather than coming across like a template from The Sun which will end up straight in the bin. If I was in the position of mortgage director, I would look at my forecasted and current comitted cost of borrowing, the likehood of increase reposessions on house that are already in neg equity and tell the government to go screw itself.

I'm on your side though just its not a clean cut as it seems

payless

those on SVr whats the score if your conatct http://www.alliance-leicester.co.uk/mortgages/existing-customer-changing-deal.aspx

payless

Or for those able- look at other lenders

lee_d_m

I received this reply this morning after mailing them last week. Has anyone else had a response yet either from the treasury or A&L ?

[FONT=&quot]thank you for your email and enquiry. It is appreciated how frustrating it is for customers of banks or other lending institutions who have not passed on the full recent falls in interest rates. However, I also hope you appreciate that the Government cannot force them to do so, it is down to those institutions to look at their business and financial situation and to respond to that. I can assure you that the Government is working very closely with lenders on this and has made clear its expectations. I can only suggest that you specifically ask A&L for an explanation. [/FONT][FONT=&quot][/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]regards [/FONT][FONT=&quot][/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]Enquiry Unit[/FONT][FONT=&quot][/FONT]
[FONT=&quot]H M Treasury[/FONT][FONT=&quot][/FONT]

austinslide

Ive also contacted both the financial ombudsman and the goverment.

matt83uk: you make a good point. The government didnt bail out santander... However, I still feel that these cuts were to aid consumers and not banks. As such I still feel it is unethical for the bank to use some of this cut for its own benefit.

Does anyone have any thoughts on what the next rate cut is likely to be?

I personally would love to move to another lender.. but dont think I can. Am going to make an appointment with a mortgage advisor and see.


EDIT: just off the phone to A&L and find that the reduction in rate wont actually come into effect till January. Totally infuriating. This means two months of higher payments after the initial rate decrease.

jonnyenglish

[quote=austinslide;16345285


EDIT: just off the phone to A&L and find that the reduction in rate wont actually come into effect till January. Totally infuriating. This means two months of higher payments after the initial rate decrease.[/quote]

I think you are mistaken in believing you will have paid two higher payments before your reduction is implemented. It is my undertstanding that all the financial institutions who reduced their rates implemented the first lower payment for their customers this month (December) irrespective of when they announced they would reduce their SVR. Although I still think it's unfair on the part of A & L who have been dragging their heels, I believe you will have to make only one more payment at your current rate before your reduction comes into force in January 2009.

pixxyco

I'm with A&L and have a mortgage which tracks their SVR. I admit that I'm very dissappointed with A&L not passing on the full rate cut, but I think that complaining to them or the Goverment will have no effect.

Now a far better way to get back at A&L is to email the Mail on Sunday (best media group I can think of), as bad publicity is far worse than an upset customer! The Mail on Sunday is generally a conservative Newspaper so will see the story as slightly political as well "Some Banks ignore pleas by Brown to pass on rate cut".

Mail on Sunday email is - news@mailonsunday.co.uk

I think all we need to do is point out that A&L have failed to pass on the full cuts, and if they think there is a story there then you'll see it next Sunday.

Now get emailing......

jrh20

My fix rate ran out on the 30th November. Does this mean i will have to pay the higher rate of 6.94% this month? Confused now.

dpc197

I think the 1.1% reduction in SVR is effective from January

Has anyone whose approaching the end of their A & L special rate asked about new deals? Are they just offering the same as what they offer to new customers?

The section of the website for existing customers remortgaging says call a number. Mine doesn't finish til March so they say I'm too early at the moment and won't discuss.

In particular to those who've got high LTV, how are A & L valuing your house for the remortgage?? Do they just apply a house prices index (halifax/nationwide) to the value they recorded at time of original mortgage?

Cheers all