Standard Life Whas going about the last rate cut and this one??

moneyexpertiwish

wary wrote: »

Received my letter too. The rates quoted are:
C&G 5%
Abbey 5.44%
Halifax 5.00%
SL 6.59%

As has just been pointed out, the old SL rate is still being used so we should expect a further reduction next month. A couple of the other rates are higher than what someone quoted a few days ago on this thread (C&G 4% Halifax 4.75%). Are these correct but just not effective yet? ... in which case our Futureperfect mortgage should presumably fall even further.

I've not checked the other rates yet but I expect that to be the case.

moneyexpertiwish

sabretoothtigger wrote: »

It would be typical if the rates were delayed as much possible, all the banks do this kind of thing just like they delay the money on your cheque when you pay it in even though they get the money immediately

I do believe sl is looking to reduce its housing 'investments'

Banks have historically done this. Rates go up, they move quicker. They go down, they move slower.

There are banks out there that pay interest as soon as your cheque is received. RBS tend to clear your cheque within a day or so providing it is issued by another bank.

Baggieboy_2

The rates quoted now are the "1st reduction" rates - they are all lower now except Abbey. One could argue that the newer lower rates were in place on 15 Dec, but SL would argue they were publsihed rates, but not actually imposed at the time - a bit like them still using the 6.59 as their own current SVR.

My own limited maths suggest that unless a collar is in place (which it may well be), the new rate from 15 Jan should be 4 + 4.75 + 5.44 + 5.79 / 4 = 5% (ish). As I say, unless there is a collar.

moneyexpertiwish

Baggieboy wrote: »

The rates quoted now are the "1st reduction" rates - they are all lower now except Abbey. One could argue that the newer lower rates were in place on 15 Dec, but SL would argue they were publsihed rates, but not actually imposed at the time - a bit like them still using the 6.59 as their own current SVR.

My own limited maths suggest that unless a collar is in place (which it may well be), the new rate from 15 Jan should be 4 + 4.75 + 5.44 + 5.79 / 4 = 5% (ish). As I say, unless there is a collar.

Some people :exclamati

Did you read what you signed up for when you took out this mortgage?

The review date is the 15th of the month and the rates at that date (not in the future or in the past!) are averaged. SL are not arguing anything.

Would you be happy if all the other lenders increased their rates by %2 effective the 10th of February and SL used them during their review on the 15th of Jan? Somehow, I don't think so.

There is no collar on the mortgage.

I don't normally post on forums but when I read the comments being made about this product I felt obliged to come on and help people understand but your first paragraph (and mention of collars) is jibberish.

Baggieboy_2

You seem to be getting awfully upset about this. If I just state the facts as I see them and you can dismiss them or otherwise.

There have been two interest rate drops in the last 2 months. In November the interest rate dropped to 3%. The relevent institutions eventually dropped their SVRs to the following:

C&G 5%
Halifax 5%
Abbey 5.44%
SL 6.59% no change.

The futureperfect mortgage rate was then reduced in December to 5.51%.

At the beginning of December a further interest rate resulted in the following SVR reductions

C&G 4%
Halifax 4.75%
Abbey 5.44% (no change)
SL 5.79%

This I would imagine should result in a reduction to around 5% for the Futureperfect in January - although in an earlier post you stated "it will not drop to 5%".

Apologies if this appears to be jibberish to you, but I am at least trying to provide some real figures.

spartak_fc

I've been notified of the new 'capped' rate of 5.51% (letter dated 16/12); however this is from 05/01/09:mad:
No change on payments until 01/02/09!
They really know how to drag it out - oh & by the way their shares manage to go south quite readily in line with their endowments, so much for supporting the savers & investors.
Surely 2009 might bring some sense of benefit from SL - but I'm not holding my breath!

sabretoothtigger

Their shares have been relatively strong, they only floated in 2006 and we've seen a 40% fall of the stock market but sl is still around their float price. Yielding about 5% also

moneyexpertiwish

Baggieboy wrote: »

You seem to be getting awfully upset about this. If I just state the facts as I see them and you can dismiss them or otherwise.

There have been two interest rate drops in the last 2 months. In November the interest rate dropped to 3%. The relevent institutions eventually dropped their SVRs to the following:

C&G 5%
Halifax 5%
Abbey 5.44%
SL 6.59% no change.

The futureperfect mortgage rate was then reduced in December to 5.51%.

At the beginning of December a further interest rate resulted in the following SVR reductions

C&G 4%
Halifax 4.75%
Abbey 5.44% (no change)
SL 5.79%

This I would imagine should result in a reduction to around 5% for the Futureperfect in January - although in an earlier post you stated "it will not drop to 5%".

Apologies if this appears to be jibberish to you, but I am at least trying to provide some real figures.

I'm not upset

I was referring to this months cut re the 5% because the new rates are not effective that would allow it to drop to such a level. Apologies if this was ambiguous in relation to a collar.

Re the point you made in bold above. These rates are not effective yet and therefore can't be considered at the 15th of Decemeber! The SL SVR rate doesn't drop until 31.12.2008 and will be used on the 15 Jan calculation.

You are providing figures (I've not checked but trust you are correct) but in the mean time you are confusing people by stating that SL are misleading and picking and choosing what dates they use for averaging when they have been clear since the start.

Baggieboy_2

yep - I'm correct.

moneyexpertiwish

Baggieboy wrote: »

yep - I'm correct.

In terms of your rate calculations but wrong in everything else.