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

sarahs999

I'm leaving them. I've just been accepted for a fixed rate for seven years that's a full percentage lower than what I'm paying now. Bye bye SL, and good riddance....

moneyexpertiwish

As some earlier posters have pointed out, each mortgage company has the right to set their rate at whatever level they choose.

The Bank division is not a big part within the SL group and makes a modest profit. In the tens of millions, not hundreds or billions like the other banks were.

People are accusing them of profiteering. If they were they'd be making a hell of a lot more.

Would you rather they went bust and left people on the dole queue compounding the economic problems? Every business has to aim to at least make something or what's the point?

moneyexpertiwish

gray64 wrote: »

Yes, I too am fuming about this - now they have announced a miserly .8% reduction, SL's svr mortgage at 5.79% is now one of the highest if not the highest in the market. But what can we do - switching to another lender I suspect would be very difficult in the current climate and those lenders who have cut their rates by the full 2.5% (eg Nationwide, LloydsTSB etc with a SVR of 4%) are no longer offering normal SVR mortgages - just fixed rate deals starting off at similar rates as SL.

Looks as if we may be stuck with it - could write to Gordon Brown I suppose, after all he has saved the world maybe he'll save us as well. In my case the saving would be about £200 a month!!

You can't be fuming that much or you would have checked. Run a simple search through moneysupermarket.com and look through ML's mortgage tips.

You might even suprise yourself and end up with a cracking deal. Alternatively you can !!!!! and moan about something you can't change.

Baggieboy_2

Just received a letter from SL to inform me that my mortgage payments will be reducing by absolutely nothing. Despite the fact that the futureperfect mortgage is "the average variable rate of C&G, Abbey, Halifax and SL", there is no reduction in my monthly payments. I will a) be emailing them immediately and b) moving mu mortgage (which is only 33% of value of property so shouldn't have any problems

Heyman_2

Maybe I don't know enough about it, but from a common sense point of view, I would have thought SL and the other smaller Business Societies who have not passed on the full rate cuts would have a strategy to keep hold of the 'safer' part of their mortgage book.

By introducing a minimal across the board cut, they are generating bad publicity and anyone on their SVR with a low LTV who can move, will certainly be moving or at least considering moving to another lender to take advantage of the better rates available.

That will leave them with people who can't move, i.e. those with the biggest debt and therefore those at the highest risk of defaulting.

I guess it depends what their motives are but I'm surprised they haven't been contacting their customers with lower LTVs to offer them better deals.

treliac

Heyman wrote: »

Maybe I don't know enough about it, but from a common sense point of view, I would have thought SL and the other smaller Business Societies who have not passed on the full rate cuts would have a strategy to keep hold of the 'safer' part of their mortgage book.

By introducing a minimal across the board cut, they are generating bad publicity and anyone on their SVR with a low LTV who can move, will certainly be moving or at least considering moving to another lender to take advantage of the better rates available.

That will leave them with people who can't move, i.e. those with the biggest debt and therefore those at the highest risk of defaulting.

I guess it depends what their motives are but I'm surprised they haven't been contacting their customers with lower LTVs to offer them better deals.

Hear Hear. People who've given them good business over several years don't need this. SL are clearly discouraging their good customers.

Baggieboy_2

Just for info, according to my info the SVRs of the 4 involved are:

C&G 4%
Abbey 5.44%
Halifax 4.75%
SL 5.79%

The average comes out a tad under 5%.

A quick calculation suggests my payments on £32.5k should be around £240.

They are still charging £264.

Small amount maybe, but if the rules of the Futureperfect mortgage are there they should be applied.

Have tried to ring but not there on Saturdays, and can't email them as they will "send a password through the post".

Terrific.

wary

Baggieboy wrote: »

Just for info, according to my info the SVRs of the 4 involved are:

C&G 4%
Abbey 5.44%
Halifax 4.75%
SL 5.79%

The average comes out a tad under 5%.

A quick calculation suggests my payments on £32.5k should be around £240.

They are still charging £264.

Someone has already mentioned on this thread that the rates are reviewed on the 15th of every month, so I'm expecting a reduction soon after.

treliac

wary wrote: »

Someone has already mentioned on this thread that the rates are reviewed on the 15th of every month, so I'm expecting a reduction soon after.

From Standard Life (laughs), I think you and the rest of us will have a long wait. But I look forward to eating my hat :rolleyes:

neverdespairgirl

swimgirl wrote: »

There is already a petition to "force mortgage lenders to pass on 100% of interest rate cuts to borrowers, instead of profiting from those burdened by debt"
it is here - so come on you lot get signing!

why should the banks be "forced" to do any such thing?