UCB mortgages 0.1% rate cut

runnerwales

Hi All

If you have a mortgage with UCB part of NATIONWIDE, you will find that they are not passing the full 1 rate cut on a variable rate mortgage.

They are dropping the rate by just 0.1% which is a bloody disgrace, i have written to my MP and send a fax to the PM.

Their reply when asked why they have not dropped the rate "we dont have to".:mad:


Regards

Robert

_Andy_

Unfortunately they don't have to.
If you require the certainty that a rate drop will be passed on , you need to look for a product that tracks the BOE base rate.

runnerwales

Hi

I think in this climate whether UCB like it or not, they should be forced to do so, after all they dropped the other rate cuts in full...

Robert

opinions4u

runnerwales wrote: »

Hi

I think in this climate whether UCB like it or not, they should be forced to do so, after all they dropped the other rate cuts in full...

Robert

Forcing lenders to change their rates is a dangerous game.

If it contributed to the downfall of a bank or building society the consequences for all of us could be massive.

Just because bank of England rates have dropped doesn't necessarily mean that UCB are getting their money any cheaper. As the risk profile on their existing mortgage book deteriorates, you can understand them needing to widen the margin between raising funds and lending them on.

Let's face it, the Government's own lending operations in the guise of Northern Rock and Bradford & Bingley have also failed to pass on the full 3% of rate cuts that we've seen in recent months.

runnerwales

opinions4u wrote: »

Just because bank of England rates have dropped doesn't necessarily mean that UCB are getting their money any cheaper. As the risk profile on their existing mortgage book deteriorates, you can understand them needing to widen the margin between raising funds and lending them on.

I find that irrelevant the government wants us the public to be able to spend more, therefore any building society or lender that prevent that from happening, in this case UCB mortgages or home loans should be heavily penalised..:mad:

feisty1

I agree with opiions4u, simply because most of UCB's mortgage book is higher risk, ie self cert, btl

opinions4u

runnerwales wrote: »

I find that irrelevant the government wants us the public to be able to spend more, therefore any building society or lender that prevent that from happening, in this case UCB mortgages or home loans should be heavily penalised..:mad:

You need to understand a few basic facts before saying something is irrelevant.

(1) The government owned banks Northern Rock and Bradford & Bingley (mortgages) have not passed on all the recent rate cuts to their customers.

(2) The Inland Revenue still taxes employee loans against the same rate they did 3 months ago - they have not passed on any of the rate cut.

(3) Lending too much money at too low a rate got us in to this mess. Are you seriously suggesting that organisations should continue to lend in a reckless way by making losses that will require even bigger taxpayer bailouts?

It is certainly not irrelevant if losses at UCB drag down Nationwide and require them to get more in the way of taxpayers money.

The profit (or otherwise) on lending is totally relevant to the security of the banking system and the preservation of taxpayers cash.

If we'd had more sensible lending in the first place, we wouldn't be in the mess we're in now. Cutting rates further to make a loss would be a pretty stupid thing for any lender to do.

Usury_up_and_wear_it_out

UCB are the sub-prime arm of Nationwide, ironically it is the people in sub-prime situations that need the most help, I personally think the term sub-prime should be dropped, the government needs to fix mortgages for all at 2%, that would save the economy and the idiot Gordo would not have had to bail out the greedy banks. Lets get rid of sub-prime, why dont we call it The Greatest Con on Earth Rate? EVERYONE should have their mortgages reduced whatever type of mortgage you are on. We are in big trouble my friend, big trouble.

hearts

Hi, what is the SVR for UCB?

mystic_trev

opinions4u wrote: »

Forcing lenders to change their rates is a dangerous game.

If it contributed to the downfall of a bank or building society the consequences for all of us could be massive.

If it happened (to say the likes of Nationwide) the Members would sue the Government for their losses - resulting in even higher Taxes!

luckyfool

runnerwales wrote: »

Hi

I think in this climate whether UCB like it or not, they should be forced to do so, after all they dropped the other rate cuts in full...

Robert

This doesn't make sense. If UCB were one of the few lenders to pass on the other rate cuts in full, surely that makes it all the more reasonable for them not to pass on all of this cut?