Birmingham Midshires

GFunk_4

I have2 BTL tracker mortgages with BM.

On the back of their letter advising of the interest rate changes there is a Question which asks "Why doesnt my payment change on the date the Bank of England Base Rate changes"

The answer given is along the lines of "When the rate changes we want make sure you have enough time to change your payment. If your payment is due between the first and the eighth of any month then we will change it 2 months after the date the interest rate changed. If its due after the 8th day of any month then we will change your payment1 month after the interest rate changed".

This doesnt seem to work in practice. One of my mortages is due on the 7th of the month - the october rate change does not kick in until 7 January ie 3 months later.

The other is due on the 13th of the month and the October rate change kicks in in December ie 2 months later.

On checking all the the rate change letters over the last year they all say the same thing.

What this means especially following Novembers big rate cut is that I dont get the benefit of the drop in payments until a month later than I should. Novembers cut in rates means a big drop in interest payments which i wont receive the benefit of until a Jan or Feb depending on which mortgage its for.

Can anyone explain if BM are correct in doing what they do or am I correct and entitled to a payment for all the previous rate cuts which have been passed on to me a month later than they should have?

thanks

Airwolf1

Probably better asking on http://forums.moneysavingexpert.com/forumdisplay.html?f=15&order=desc&pp=40

Premier_2

Airwolf1 wrote: »

Probably better asking on http://forums.moneysavingexpert.com/forumdisplay.html?f=15&order=desc&pp=40

Already has done it seems

http://forums.moneysavingexpert.com/showthread.html?t=1345519

chucknorris

GFunk wrote: »

I have2 BTL tracker mortgages with BM.

On the back of their letter advising of the interest rate changes there is a Question which asks "Why doesnt my payment change on the date the Bank of England Base Rate changes"

The answer given is along the lines of "When the rate changes we want make sure you have enough time to change your payment. If your payment is due between the first and the eighth of any month then we will change it 2 months after the date the interest rate changed. If its due after the 8th day of any month then we will change your payment1 month after the interest rate changed".

This doesnt seem to work in practice. One of my mortages is due on the 7th of the month - the october rate change does not kick in until 7 January ie 3 months later.

The other is due on the 13th of the month and the October rate change kicks in in December ie 2 months later.

On checking all the the rate change letters over the last year they all say the same thing.

What this means especially following Novembers big rate cut is that I dont get the benefit of the drop in payments until a month later than I should. Novembers cut in rates means a big drop in interest payments which i wont receive the benefit of until a Jan or Feb depending on which mortgage its for.

Can anyone explain if BM are correct in doing what they do or am I correct and entitled to a payment for all the previous rate cuts which have been passed on to me a month later than they should have?

thanks

What on earth are you on about, don't you realise that the same time lags will kick in when rates eventually go back up, at which point you will be paying a lower rate for those extra months

GFunk_4

Chuck norris, yes im perfectly aware that i will get the benefit at the end when rates go back up but would rather have the money in my pocket now. Much better in my pocket than theirs. Hope that answers your question