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Intelligent Finance
stressedoutmumof1
Posts: 1,483 Forumite
Has anyone received a letter from IF regarding the 1.5% cut on their SVR mortgage? I've only had one cut 0.5% effective 2nd November (which effected my 1st December payment).
Squares knitted for my throw ~ 90 (yes!!! I have finally finished it :rotfl: )
Squares made for my patchwork quilt ~ 80 (only the "actual" quilting to do now :rotfl:)
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They havent told savers about their rate cut, either in Nov, or Dec!!0
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I only just received the letter regarding the 1.5% cut to my tracker on Friday so if they have changed the SVR then you may get something next week.
Chris0 -
Thanks - I'll keep my fngers crossed
Is that effective for your 1st January payment? Squares knitted for my throw ~ 90 (yes!!! I have finally finished it :rotfl: )Squares made for my patchwork quilt ~ 80 (only the "actual" quilting to do now :rotfl:)0 -
Yep effective as of 2nd Dec so the reduction is seen in the 1st Jan payment.
Chris0 -
I got my letter on Friday also with effect from Januarys payment.0
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Yes - received mine too, but it's just a formality.
The T&C's on IF's mortgage state that the SVR cannot be more than BOE base rate + 2%. They are at that spread now (having incrementally raised the spread over the last year or so) and therefore are bound to pass on the rate cuts.
In effect, the IF SVR is now a tracker.0 -
So Willowcat, in your view does that mean they are bound to pass on this last 1% drop as well, despite saying that Halifax will just pass on 0.25 % ?0
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That's correct.
I've checked the terms and conditions going back to 2005 (when I took my mortgage out) and each edition says that the rate can be no more than BOE +2% - though they only change the interest on the 1st of the following month so there is a short period when the rate can be higher (i.e. the latest cut won't get passed on until 1st Jan).
If you have a mortgage dating back earlier than this you'll need to check your T&C booklet. By the way, they can't vary the T&C for the mortgage once you've taken it out
Halifax obviously don't have the same clause in their T&C, despite both IF and Halifax being part of the same group.
It was something I checked on before I took out my mortgage, as I got stung once before with Standard Life when their spread went to stupid levels.
If their SVR is not 4% on 1st Jan I'll eat my hat - or apologise - or something!0 -
WillowCat,
Well spotted !! I have finally found that bit on my T+C, (page 49 of the 2001 book) and it states exactly the same as the newer ones.
I wait with bated breath now to see what is announced.
I had the letter summarizing the 1.5% reduction today so they are slowly filtering out to us.
Many thanks.0 -
I got my letter yesterday :jSquares knitted for my throw ~ 90 (yes!!! I have finally finished it :rotfl: )Squares made for my patchwork quilt ~ 80 (only the "actual" quilting to do now :rotfl:)0
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