Dont let Mortgage Express Con You Out Of The Full 1% Base Rate Fall

RomansProperties

We have 1 Buytolet mortgage with mortgage express and I have had a letter with every reduction.
Its now 2.39% and hopefully it will go down another 0.5%

Redfish_2

mangrego wrote: »

i am on a variable rate at the time march 07, 6.34% with a discount of 0.91% for the term of the mortgage, it dont tell me if ts a svr rate or a pvr rate, the last rate change tey only gave me 0.16% does that mean they have to give me the full rate cut last month and the full rate cut this month? I am realy confused now as i have noticed they have changed there website from stating that all Variables are tracked by about 1.5% above the base rate?

Hi Mangrego, We too have the similar wording on our deal "a variable rate" discount of 1.21%, and we were passed on all the rate cuts in full until the rate cut announced in December when, like you, we were only given a 0.16% cut instead of 1%, and then no cut at all on any of the subsequent Bank of England base rate cuts (January, February and now March). We looked on their website where they have a glossary it states the following:

Bank Of England Base Rate: “…All Mortgage Express variable rates are linked directly to the Bank of England Base Rate.”

Discounted Rate: “A type of variable interest rate, with a percentage off a variable rate for an agreed period. Mortgage Express’ discounted variable rates are offered as a discount off the Product Variable Rate for a specific period.”

Product Variable Rate: “This is the default or go-to-rate for your Mortgage Express mortgage deal. When your fixed or discounted rate period ends the account will revert to the Product Variable Rate. Mortgage Express' PVR is linked to the Bank of England Base Rate.”

And there is no entry in the glossary for the term Standard Variable Rate.

According to the glossary which is their only published information on this then we would have to assume we are on the PVR with discount rate and that is linked to the Bank of England Base rate. We complained to Mortgage Express and their reply was: “As the Deed of Variation you signed clearly states in section 4 that it is a variable rate, this confirms it does not track the BoEBR as a PVR does”. The response to our complaint suggests that somehow we signed an agreement specifically for a Standard Variable Rate but does not substantiate this. The response explains that the SVR is a managed interest rate which means that it is set by the lender themselves and that there is no requirement for a SVR to track the Bank of England base rate in any way. But there is no disclosure of this particular nature of the Standard Variable Rate at all, either on their website glossary, or in our contract. As they are regulated by the FSA their information has to be clear and concise - in other words there must be full disclosure. Our argument is that they can't therefore try and obscure a rate which may not track the base rate with the words 'a variable rate'. What is clear and concise if you read their published glossary next to our contract is that we would be on a PVR which would mean we should get the full rate cut. We have made a complaint to the Financial Ombudsman to this effect.

In addition, they are now wholly owned by the government (the government is their only shareholder). And yet their actions in not passing on the interest rate cut undermines the goverment's aim with these Bank of England base rate cuts to put more money in the pockets of consumers. So we have written to our MP as well.

Anyone else in this position should also complain, it's about time we didn't let them get away with it.

Redfish

Mamamo_2

I have been really disappointed that Mrtge. Express have not passed on the last few interest rate cuts and decided to have a look at the website. I noticed that they state:
Mortgage Express website 13 March 2009
If a STANDARD VARIABLE RATE (SVR)applies to your mortgage this rate is not directly linked to the Bank of England base rate and is changed by Bradford & Bingley. We are currently reviewing the SVR in response to the Bank of England base rate change. If we decide to change the SVR we will inform you of this change in the normal manner
However when I checked out the BB website they state that
Bradford & Bingley website 13 March 2009
Interest rate changes
Following the reduction in the Bank of England Base Rate by 0.5% on 5th February 2009, the Bradford & Bingley Standard Variable Rate (SVR) will reduce from 4.84% to 4.59% on 1st March 2009. Details of changes in our SVR can always be found in the Interest Rate section of our website
I then contacted Mrtge. Express and was informed that I would have to put my query in writing and not e-mail as the Admin team do not have e-mail!
The address is: 1 Providence Place, Skipton, North Yorkshire, BD23 2HL
I would urge that you all do this.

deucebru

I'm taking ME to the small claims court over this subject.

I'm attempting to claim back the difference between their current SVR to me and what it would have been if they had reduced it in line with the BoE base rate.

They are trying to get it thrown out by saying that there is no case to answer in law.

My objective is to get the CEO in court i.e a public forum, to answer specific questions on intersst rate matters mentioned in this forum.

I am not a lawyer or public speaker so any help,advice or suggestions (polite ones!) would be most welcome in fighting this case.