Accord SVR Rate cuts

shellbell28

Hi

I was wondering if anyone else had a mortgage with accord which is on svr

ny fixed rate of 4.89 expired in oct and my account reverted to there SVR which was 7% , they are now advertising there SVR as 5.34 on the website but i have seen no reduction in my dd or had a letter to tell me my payments will be going down it would save me about £60 a month.

Do i need to contact them to get the rate reduced , didnt want to phone up and look stupid if ive got it wrong but i assumed as i was on svr my payments should of reduced

Thanks

Michelle

Charlton_King

I think you should contact them if you haven't already done so.

If you're on their SVR there's no reason I can think of why it wouldn't have affected your payments by now.

msc1977

My understanding is that they only make amendments annually unless you contact them and ask them to amend it, the good news will be your overpayments should be reducing your mortgage. We have an SVR of 4.73% with them that ends next week, we've opted for a 2 year 5.19% with no fee, it keeps our payments very similar and fixed, we cant afford to drop onto the SVR incase our LTV increases any further and then we find that the SVR increases and we cant get a fixed rate at all but i keep calling them to see if there is any further change on their deals they seem to do their changes late in the month and usually with no notice, they are still to react to the last BOE cut.

HTH

Alan_Cross

msc1977 wrote: »

My understanding is that they only make amendments annually unless you contact them and ask them to amend it, the good news will be your overpayments should be reducing your mortgage. We have an SVR of 4.73% with them that ends next week, we've opted for a 2 year 5.19% with no fee, it keeps our payments very similar and fixed, we cant afford to drop onto the SVR incase our LTV increases any further and then we find that the SVR increases and we cant get a fixed rate at all but i keep calling them to see if there is any further change on their deals they seem to do their changes late in the month and usually with no notice, they are still to react to the last BOE cut.

HTH

I thought they had a 2 year fix below 5%, no...?

msc1977

Alan_Cross wrote: »

I thought they had a 2 year fix below 5%, no...?

Not with 85% LTV and no fees. We could have had 4.89% but the fees by far out weighed the difference in payments over the 2 years.

bashali

I have called accord and asked them when the SVR is coming down frm 5.34. Apparently it is around 15 Feb, a decision will be made how much the rate will be reduced.

I would not expect it to drop too much perhaps around 4-4.75%. which still is quite high compared to other lender even YBS which owns accord mortgage.

I did say to the lady that if rate is not reduced in line with other lenders then I would lodge a complain with chanceller not to throw tax money to YBS or its subsuderies.

I think if they get high number of call asking them to reduce SVR, then it may make difference or to threat them to withhold payment.

It really sucks,when you see some banks trying to make such a huge margin on profit.j

msc1977

bashali wrote: »

I have called accord and asked them when the SVR is coming down frm 5.34. Apparently it is around 15 Feb, a decision will be made how much the rate will be reduced.

I would not expect it to drop too much perhaps around 4-4.75%. which still is quite high compared to other lender even YBS which owns accord mortgage.

I did say to the lady that if rate is not reduced in line with other lenders then I would lodge a complain with chanceller not to throw tax money to YBS or its subsuderies.

I think if they get high number of call asking them to reduce SVR, then it may make difference or to threat them to withhold payment.

It really sucks,when you see some banks trying to make such a huge margin on profit.j

Bummer - we go onto our new fixed rate as of sunday and i wa really hoping they would make an amendment to their rates this week so that we could hopefully benefit. I'm tempted to cancel our FR and drop onto SVR for a couple of weeks but then i'm concerned about our LTV.....Accord are currently valuing our house at about 15k more than we think its worth which puts us in a slightly lower LTV bracket.......if i jump ship off the FR we've agreed i could end up worse off if they revalue before mid Feb.....ooh decisions decisions - any advice anyone?

msc1977

Just another thought, i'll actually be surprised if the SVR drops below 5%. On previous BOE drops Accord have only passed on a fraction of the drop, i think last time it dropped by 0.5% Accord passed on only 0.15%. I would expect (purely in my experience with Accord) it to drop to 4.99% at a push but most likely 5.19%.......

patchman

my guess is Accord will reduce their SVR to 5.09%, they seem to be following Northern Rock's SVR with their last few rate reductions. I am very disappointed that we haven't seen a reduction this week, as previously mentioned they tend to leave it until the last week of the month in which a BOE change is announced.

Mithos

bashali wrote: »

I think if they get high number of call asking them to reduce SVR, then it may make difference or to threat them to withhold payment.

All you'd achieve is to attack the person you speak to. Call centers are in place to reflect the views and choices made by the people at the top of the company, the people you talk to just act as a shield to them.

1) You write in directly to the man (or women) at the top
2) You leave. Rates are in place for a reason, banks and BS need to attract and oust customers at different times depending on their needs.

bashali

what are the chances of accord mortgage going bankcrrupt. It may be a wishfull thinking but leaving rate at such profit margins (400%-500% above) is likely to cause wide spread resentment for yorkshir building society. Also i do not believe accord mortgages offer direct savings account anyway.