Chelsea mortgage rate?

Jasperparrot

They can't be looking that hard as most of their competition have reduced their rates over the past three months. In some cases the competition now have an SVR of less than half of Chelsea's. It will be interesting to see whether they come up with more excusses not to reduce their excessive SVR following the latest BoE cut while at the same time they've always managed to reduce their savings rates following BoE cuts !

sanatogen

Jasper, that's interesting to know.

I'll get my "moan" about chelsea out in Youtube quickly.

Jasperparrot

I take back what I said about Chelsea not looking at what the competition do. They do seem to be reducing their saving rates along with their rivals. Shame the blinkers are on when it comes to the SVR !

Jan 29 2009

http://www.myfinances.co.uk/companies/savings-investments/chelsea-building-society/chelsea-cuts-interest-rates-across-savings-accounts-$1264644.htm

Recent changes to savings rates taken from Chelsea's site

90 Day Notice account (2nd Issue) - REDUCED

Branch Instant - REDUCED

Call Direct Advantage - REDUCED

Chelsea Cash ISA (2nd Issue) - REDUCED

Chelsea Monthly Extra(6) - REDUCED

Chelsea Regular Savings - REDUCED

Classic Account - REDUCED

Exclusive Savings(7) - REDUCED

Portfolio Extra Account (3rd Issue)(1)(2) - REDUCED

At this point I gave up looking any further as they all seem to have been reduced.

However...

SVR - UNCHANGED (to date) regardless of 4 aggressive, and succesive, cuts to the BoE rate.

Says it all really - the only people benefitting from Chelsea rate changes are Chelsea Building Society themselves.

se97dgw

At least it is "under review" now

http://www.thechelsea.co.uk/aboutchelsea/rateinfo.html

Jasperparrot

It gets changed to 'under review' after each BoE reduction so I'm not holding my breath. It also fobs you off with the reason they take so much longer that everyone else to come to a decision. Roughly translated it means 'we're hoping you'll forget'

samsuka

Just sent them an email via the contact page, more to vent my frustration than anything.

They sent back a letter saying they have no plans at present to cut rates. Sounds fairly final to me. As much as i would love them to, i don't think they will cut their SVR soon. The accusations that they are ripping any of us on the SVR off, seem to be water off a ducks back. They may be in serious financial trouble and just trying to recoup the $50 million Iceland loss ASAP

SmileyG_2

se97dgw wrote: »

At least it is "under review" now

http://www.thechelsea.co.uk/aboutchelsea/rateinfo.html

How do you find this information from the Chelsea BS home page?

It seems its a case of "Well, it's on the website" (but you may have to search hard to find it!:rotfl: ).

I still reckon it's time for the Chelsea borrowers to stand up and make a fuss.

Fancy a day out in Cheltenham on Thursday 23rd April 2009?

SmileyG

Jasperparrot

So much for Chelsea adopting the 'Treating Customers Fairly' ethos

Much better rates are available to 'Brand new customers' in the hope they look more at the headline rate rather than the rip off SVR they get after their deal period expires.

No doubt when rates start to turn in the other direction they'll not need so much time to make a decision. As soon as I'm able to to move away from these crooks the better, but I guess that's what they're hoping for too.

MarkyMarkD

They would only not be treating customers fairly if they won't allow existing borrowers - at the same LTV that they are willing to lend to new borrowers at - switch to the cheaper new products.

Is that actually the case?

When you say "as soon as I'm able to move away" what precisely is stopping you moving away now?

If it's that you are on a discounted product then you aren't comparing like with like. It it's that your LTV is too high to get a best-rate deal elsewhere (or from Chelsea) then you aren't comparing like with like.

Jasperparrot

Accept your point re comparing like for like. As it stands my LTV has gone over what most other borrowers would now want to take on based on falling house prices and lenders tightening up the lending criterea. Therefore I'm stuck with them for the time being.

However, my main point is if I was with another lender say C&G for example, my rate would have dropped regardless of the LTV based on the fact they've passed on recent cuts that Chelsea haven't.

As for your comment re TCF and comparing Chelsea's deals for new borrowers and existing borrowers then two examples are below, both up to 65% LTV.

New borrowers

2 Year fixed 3.39%
5 Year Fixed 4.29%

Existing borrowers

2 Year fixed 3.99%
5 Year Fixed 4.69%

SVR regardless of LTV 5.79%