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

wrigglers_Dad

Only 85 signatures on the number10 website petition. That's not going to blow warm air on the door knocker, let alone blow the damb thing down!

Come on ... if you're bothered at least sign the onlne petition. It only takes a minute.

I'm also going to write to my MP ... is there a Financial Ombudsman that would care?

Digby

wrigglers_Dad

Another thought. Is there a financial advisor out there that fancies taking on negotiating a group deal on all disgruntled SL mortgage customers moving over to another provider on a better rate? There must be a commercially viable deal to be done here if we can get enough customers to move together?

Digby

dunstonh

is there a Financial Ombudsman that would care?

No. its a commercial decision and the FOS cannot interfere in commercial decisions.

Of course, you could ask Standard Life if you could pay them back the amount you gained when you were benefitting from a LIBOR based mortgage and offset that against what you are paying more for now.

I'm also going to write to my MP

Something along these lines perhaps....
Dear MP, I bought an apple and I am now very unhappy that my apple looks like an apple and tastes like an apple when i think it should be an orange.

chrismcam

People can complain to the Ombudsman all they like. But, as Dunstonh says, there's nothing they can do. It's a commercial decision so all you can do is redeem your mortgage and go elsewhere, or continue on as you are. The Ombudsman will tell you this.

Same goes for writing to an MP - nothing they can do. Another waste of everyone's time.

Standard Life can put their SVR up or down as they like, so can everyone please stop moaning and wasting their time with these 'complaints'. It is a shame that the rate hasn't reduced as much as you'd all like, but their rate is linked to LIBOR, not BOE base rate.

You all signed a mortgage contract with them (after reading a Key Facts Illustration) and both these documents clearly explain what you're letting yourselves in for.

If you don't like it - LEAVE!

venturer

chrismcam wrote: »

People can complain to the Ombudsman all they like. But, as Dunstonh says, there's nothing they can do. It's a commercial decision so all you can do is redeem your mortgage and go elsewhere, or continue on as you are. The Ombudsman will tell you this.

Same goes for writing to an MP - nothing they can do. Another waste of everyone's time.

Standard Life can put their SVR up or down as they like, so can everyone please stop moaning and wasting their time with these 'complaints'. It is a shame that the rate hasn't reduced as much as you'd all like, but their rate is linked to LIBOR, not BOE base rate.

You all signed a mortgage contract with them (after reading a Key Facts Illustration) and both these documents clearly explain what you're letting yourselves in for.

If you don't like it - LEAVE!

Thanks for your helpful comments, but I think you will find the LIBOR has dropped in line with the BoEBR. The current gap between BoE and LIBOR is approx 1.25 points, making it around 3.25 - 3.5 dependant on the swap rate for the period. The LIBOR has reduced in line with the BR change, so I fail to see the point of your argument or exactly what you have to offer to this thread?

Your MP may not be able to do anything directly to SL, and yes it is a commercial decision, however, if enough people make those with even a little influence aware, they can put pressure on Brown to take action against those profiteering from customers when the Government is trying to fight its way out of a recession.

I am particularly amused as to how SL seem to hide behind the LIBOR rate being higher than the BR as an excuse to keep the rates higher, knowing that the majority will be unaware of the actual rates.

More so, I think you will find that banks haven’t lent to each other for months – so this rate is more or less fictitious! Banks are just using it being slightly higher to keep rates high to subsidise their poor mortgage book.

Unfortunately, I too am a disappointed customer having been told many times how “SL always have the lowest SVR” ad how they pride themselves on it.

It is clear from their website and the deals available that they are trying to wind up their mortgage book and trying to make as much money from us as possible.

womble23

Most people with SL will have signed a contract, read a KFI etc, more than likely they'd been guided to SL by a Financial Advisor, and at a time when their rates were quite favourable. And equally when looking at a mortgage based on a variable rate, they'd have been lead to believe/assumed that all mortgage providers would move up and down by similar (if not the same amount) with any base rate change.

And while the rate reduction is a commercial decision, Gordon Brown and Alistair Darling were being quoted as asking for banks/building societies to treat customers fairly and reduce their rates. Unfortunately leaving for most people is not a simple matter, given that they'd tend to have significant costs associated with any early redemption fee.

I've not reviewed my contract yet, but has anyone reviewed their contracts to see what formal link it has to LIBOR?

Also, has SL's KFI had any of the 'weaknesses' that some of the other banks have had?

dunstonh

I am particularly amused as to how SL seem to hide behind the LIBOR rate being higher than the BR as an excuse to keep the rates higher, knowing that the majority will be unaware of the actual rates.

They have never hidden from it. Remember that SL, like many of these direct and lesser known lenders, dont have the deposits on their books to offset the lending. So, borrowing the money to lend to consumers was their main source of funds.

Unfortunately, I too am a disappointed customer having been told many times how “SL always have the lowest SVR” ad how they pride themselves on it.

Yes, they had lower rates when LIBOR was good.

They also did subsidise the rate somewhat when it was high so it is only fair they recover some of that. Its one of the main expectations when smoothing a rate.

sarahs999

dunstonh wrote: »

Always a risk being the only one on the thread to post this way...

Standard Life mortgages are not based on BoE base rate but LIBOR. That is why they were cheaper when LIBOR was lower and why they are not reducing the full rate at the moment.

If you want track BoE base rate then you are on the wrong mortgage with SL.

But but but.... Libor is the rate that affects all inter-bank lending, no? So how come other financial lenders are passing on the cut properly? Can't have it both ways.

I too have come to the end of a fixed five year with SL, and rang them up the other day to ask what fix they could offer me for a remortgage. their answer? Nothing. When I asked why they said they just weren't offering any remortgages. So I said, er, what about all the ones advertised on your website?And they jsut said no, we can't offer you anything. This is a customer who has been with them five years, never missed or been late, and even overpaid once. What planet are they on? So of course I am remortgaging. But I too have been outraged at their lack of movement.

Of course, they are a business and can do what they want. Personally I hope they sink like a stone.

dunstonh

So how come other financial lenders are passing on the cut properly?

Deposit takers are using deposits. Larger ones are taking the financial hit. Std Life dont have deposit takers (at least nowhere near the amount needed) and cannot take the hit.

What planet are they on?

One that says lenders do not need to be charities. They cant afford it.

Isleman

dunstonh wrote: »

One that says lenders do not need to be charities. They cant afford it.

I can fully understand that and we know there must be profit especially when we talk about banks.
However a mortgage can change or mess up a whole family life .This why I think the mortgage lenders have a higher responsibility than the unsecured loan lenders. The mortgage lenders can't play with peoples life.
Nobody expects charity from them but to be fair and follow the mainstream.
If Sub-Standard Life can’t pass the rates to the customers there are only two reasons :
1. They are greedy b*****s.
2. They are in big s**t
Either one is not good for us . I hope you agree.