Northern Rock - Not passing on full cut

lisyloo

I'm just saying the government should lead by example

I agree with your points Toby.
The only one I'd make is that you seem to be talking about NR as if the government run it. They don't. It's run as a commercial organisation by other employees/directors. The government do not dictate can only try to influence. Otherwise I agree.

Because it is do as I say and not as I do time. Hypocritical politicians are not my favourite people.

As above NR are not run by the governement.
Sure there is a link but it's run as a commercial bank who make decisions of their own.

I was merely drawing attention to our hypocritical politicians who are no better than tabloid headline writers in their understanding of why a strong banking system is actually good for the nation.

It's a fair point but as I said above, they don't actually run the bank.

I really don't think I merited that sort of response, but hey, I'll cope.

Great - it's just a discussion :beer:
Glad you got some good rates.

curs82

I've got a NR mortgage and I'm just happy some of the cut got passed on to us. It's not like anyone is obliged to pass the cut on. The amount of my tax which has gone to them will be far exceeded by the amount my monthly repayments drop by so I'm more than happy.

The full 1% would of been great, but we got the full 1.5% from the previous BOE cut, so a 2% cut in SVR over 2 months isn't so bad. If they don't remain profitable we'll only end up in a similar situation.

Nonshy

pinkflipflops wrote: »

It's on there website.

http://companyinfo.northernrock.co.uk/corporateCommunications/news/article.asp?newsID=220

It says on there that the tracker rate will be passed on as per our T&C's. I cannot find anywhere in my T&C's about how long NR have to pass on this cut. It seems to take them 2 months, whereas when the rate was going up they passed it on straight away.

Has anyone else found this in there own T&C's??

it is in your offer of loan, if you have that it is pretty hard to miss

Nonshy

curs82 wrote: »

I've got a NR mortgage and I'm just happy some of the cut got passed on to us. It's not like anyone is obliged to pass the cut on. The amount of my tax which has gone to them will be far exceeded by the amount my monthly repayments drop by so I'm more than happy.

The full 1% would of been great, but we got the full 1.5% from the previous BOE cut, so a 2% cut in SVR over 2 months isn't so bad. If they don't remain profitable we'll only end up in a similar situation.

good to see some NR customers understand and appreciate the situation!!

NR are not expecting to come anywhere near breaking even until 2010... so continuing to pass on full rate cuts would only exacerbate the problem.

RobertoMoir

TobyPro4 wrote: »

Sorry but I have to ask. Does that mean if you had your mortgage with Northern Rock you'd be ringing them up and asking them not to apply any more rate cuts to your mortgage so they can pay their government debt off quicker?

No of course not. I'm as human and self-serving as anyone else.

I was just saying that there are two sides to every coin. NR can get crucified for not passing on the full rate cut to their customers or they can get crucified for not repaying their debt to the govt. as quickly as possible. Either way, someone's gonna get nailed.

As I've said in other posts on other banks, banks are not obliged to play follow-the-leader with the government's own suggestions if they think those suggestions are financially irresponsible ones.