Chelsea mortgage rate?

petcorner

Hi,
I have just received my annual mortgage statement from the Chelsea and it seems they are ignoring the last 2 rate decreases. SVR is 5.79%

Do any of mse's helpful posters in the finance world know if they are planning to reduce them further?

I know that it wont actually reduce my payments for the next year but it would mean a small overpayment which has to be good!

draker

Chelsea still haven't announed a SVR rate cut from both the December 2008 and January 2009 Bank of England Base Rate cuts announced. For now, the Chelsea SVR rate remains at 5.79%.

Correct as of 09th Jan 2009.

sanatogen

It sounds like they've decided to pocket the difference.

Understandable, but annoying.

I'm able to leave without penalty, so if therer are good deals out there I'll move.

A youtube video asking why Chelsea havent dropped their rates wont go amiss either.

petcorner

Yes I would love to move to my bank which is first direct who have always been great but as we all know LTV and income rule the game now so think I'm stuck.
As you say, perhaps they will be shamed into it! I think part of the problem is they don't really want to lend money at the moment so they don't care if their rates are competative.

sanatogen

I've typed a message into chelsea website feedback section and sent it saying I'm unhappy with their lack of reduction and will leave them at the earliest opportunity. Name and address provided so they can look me up.

If I do a youtube video, it'll be in a weeks time. Might be worth it, might be not, but at least it'll stop me moaning.

petcorner

good idea on the feedback link, think i will do the same, as you say it will make me feel a bit better!

sanatogen

Feedback link here:

http://www.thechelsea.co.uk/aboutchelsea/feedback.asp

Ryan23

Hi there - I too am "stuck" with this 5.79 rate for the year. I will save £70 per year. I am locked into this mortgage until October of this year. Can I ask the Chelsea to allow me to "come off" this "lock-in" and go for the monthly reductions that will certainly come? Will they let me do this?

sanatogen

I'd say that was unlikely, considering my conversations with them in the past.

I'd also speak to an IFA. I did, and despite the cost of their services, it has saved me bundles.

Jasperparrot

I've been in touch with CBS a few times recently and each time I'm told their products are being reviewed. Only last week they sent this email out to mortgage brokers:

Product update from Chelsea

With effect from close of business on Friday 23 January 2009, Chelsea Building Society is withdrawing its SVR mortgage.
All applications must be received by 5pm on Friday 23 January.
We are currently in the process of reviewing our product range.

Now I thought this may mean that as they were no longer looking to allow new borrowers to go straight onto their SVR (why anyone would want to do this is beyond me) that an announcement re a reduction to their SVR was about to be made. However, still nothing...

Three weeks ago I was sent this response to an email that I sent:

'There have been no announcements as yet with regards to the latest 2 Bank of England base rate cuts. We are expecting an announcement regarding our SVR within the coming couple of weeks'.

Still nothing.....

Throughout December their website stated that their products were under review following the base rate reductions, yet this message has now been removed without any reductions to their SVR being announced.

I, as a CBS mortgage account holder, am more than happy for them to be shamed into reacting to the recent base rate reductions as almost every other lender has done.

paulsin

They may be using these rate cuts as a recapitalisation technique. It may be rubbish now, but it may just be that they are offering the better mortgages later, when all the banks have huge debts with Mr Darling.