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

Isleman

It seems Sub-Standard Life is getting "better" with its customers.
Not only they are p!!!ing on mortgage customers with the highest SVR rates and the worst possible offset. Now they start p!!!ing on their savers too :
Have are read here.

http://www.telegraph.co.uk/finance/personalfinance/investing/4290669/Standard-Life-savers-lose-money-in-cash.html

moneyexpertiwish

I've just received my futureperfect capped rate letter and my rate has reduced to 4.87%.

As per one of the above posts, SL will be reducing their SVR again effective from 05.02.2009. On 15.02.2009 the rates will be averaged for the 4 lenders (Futureperfect Mortgage ONLY) and reduced again, providing other lenders don't increase in the mean time (unlikely).

Hope this is useful for Futureperfect customers.

sabretoothtigger

Sounds like there is alot of lag in the system, hopefully its of benefit when the rates rise back up

moneyexpertiwish

sabretoothtigger wrote: »

Sounds like there is alot of lag in the system, hopefully its of benefit when the rates rise back up

I think that SL and all other mortgage companies are bound by a Direct Debit guarentee that means they can't change your payment without giving you something like 5/6 working days notice which means there will always be a bit of lag.

They way mortgage companies have always worked is that when the rates go down they act slower and when they go up they increase them sooner, usually right to the minimum allowed by the DD guarentee.

I think that the goverment were talking about putting in some kind of legislation around this but think it probably got a bit messy as mortgage lenders aren't obliged to pass on rate cuts as they are commercial decisions.

Also, from what a few people above have said is that SL don't follow the BoE rate but the LIBOR rate (don't know if this is accurate but I'm guessing it is).

SLife_are_Rubbish

Hi, this is my first post so please be gentle with me !

I have a discounted SVR tracker mortgage with SLife and have been with them for 4 years. My LTV is only 25%. I have recommended them to several friends and family and now wish I hadn't.

Their SVR at 5.54% (wef 5th Feb) is now amongst the highest that the UK mainstream lenders are offering. With reference to previous posts concerning SLife protecting their savers' interest rates, I must point out that their financial summary statements shows that the mortgage book stands at £10bn, whilst savers (at SLife Bank) balances are only £4bn.

They really wish to do the following:
1) Run their mortgage book down (which means less wholesale funding requirement)
2) Increase profitability at a time when their borrowers need support.

I have worked as a mortgage broker in the past and have seen some terrible stuff out there but I have never before seen something like SLife's turning their backs on borrowers like this. An absolute disgrace.

Thank you for letting me get this off my chest !

sabretoothtigger

SALES PER ACTIVITY
Life insurance and Pensions: 89%
Banking activities: 7%
Healthcare insurance: 3%
Asset management: 1%
Sector Data as of 31/12/2007

http://uk.finance.yahoo.com/q/pr?s=SL.L

Why did you originally recommend them. At least they arent going to go broke like other lenders I guess

SLife_are_Rubbish

Hi - I recommended them because they had competetive rates; an excellent offset reserve; great support for mortgage advisers (!) and very decent retention offers for existing borrowers.

Now, their rates are rubbish; no support; no retention offers and finally, the worst delivery of publishing rate reviews that I have ever seen in 24 years of working in the industry.

Pretty damning ? Yes, I agree with you that they might not go broke, but have you considered their balance sheet and where they are going with their business model ? I used to hold their shares, both as an active investor and as a recipient of free shares through holding pensions with them.

Now, therefore, I have dumped their shares; transferred the pensions; am re-mortgaging elsewhere on 9th Feb; closed the kiddies' savings accounts and have apologised profusely to my friends and family for believing that SLife would honour their previous promise to be competitive in the industry.

Good-bye Standard Life, and good riddance !

sabretoothtigger

Could be that they had good rates at the time because their had been a rise but their system was tracking it slowly like it is now?

I did read they were looking to reduce their property exposure, I dont know if that means a policy of uncompetitive rates or just meant something like less commercial property investment

Teachertim

OK, I am with Standard Life and am on a fix (5.3%) that ends in August. They have put the latest .25% cut onto their SVR which will soon stand at 5.34%. I am happy as long as it stays like that, but we all know it won't for ever. I have too high LTV to remortgage when my fix comes to an end so in the short term I am stuck with them. BUT, their rates were good when BOE rates where higher, so, is it not likely when BOE starts to creep back up that SL will be less keen than other lenders to increase their SVR ?

Surely they will play the game both ways ?

If not, I'm up the creek without a paddle - their customer service is always very good ! I guess I can consle myself with that!?

ricky_south

http://www.standardlife.co.uk/content/myfreestyle/reduce/offsetting.html


on there website its says "or example, if you have a mortgage balance of £160,000 and an Offset Reserve of £20,000 you only pay interest on £140,000."

they could not miss-sell the product more if they tried. this is so incorrect it is unbelievable they can be so arrogant to explain their offset as working in such a way when it does not. the interest earnt on the money within the offset goes towards paying off the loan amount. you still pay interest on the full loan amount.

and the FSA can't do nothing about it.
standard life = taking all you money so you can have a sub-standard life.

ricky