Collar on HSBC tracker rate? + Capital Home Loans?

carlsbergy

Hi I have a 0.44% rate over base tracker with HSBC, is there a collar stopping further reductions if base rate drops further?, I also have a tracker rate on a buy to let with Capital Home Loans, does anyone know is there a collar stopping further reductions if base rate drops further with this mortgage provider too?

One last question, a family member is coming off a fixed rate with HSBC, I cannot find on their website their standard variable rate, does anyone know what it is currently with HSBC?

Thanks

Archlever

Hi,

I have a tracker with HSBC as well. HSBC has no collar on it's trackers but "reserves the right to stop passing on further cuts in case of a significant change ins the mortgage market". It has however not given any indication that it will not pass on cuts on trackers.

The HSBC SVR is 6.25%

Here is the link

carlsbergy

Thanks, appreciated

TEDDYRUKSPIN

Hmmm.

A tracker is a tracker! It tracks the bank of england base / repo rate. Interest is daily and therefore, a drop or increase will kick in straight away.

The other mentioned is NOT a tracker! It is the banks standard variable rate! Thus, VARIABLE rate ONLY! This is discretionary and therefore banks do not have to pass on the drop in the base rate straight away! Hence, HSBC have taking so long to pass on the drop and also not the full 1.5% drop.