A&L mortgage terminology- what is the 'basic rate'?

davecon1

My 5 year fixed rate mortgage (4.99%) with the A&L is due to expire at the end of May. There is no redemption penalty or extended tie in when the mortgage expires but my mortgage offer states that I will go onto the 'basic rate' for the remaining term.

I checked through the mortgage offer but could not see any definition of the basic rate and consequently called the A&L up for an explanation. No surprises but they said that the basic rate related to the standard variable rate even though the SVR is not referred to at all on my mortgage offer. I checked out some of their new fixed rate deals and it's pretty clear what happens when the mortgage expires:

"Then reverts to our standard variable rate, currently 5.34% (variable) for the remaining term"

To me the term basic rate is very ambiguous and up until my conversation I had assumed it meant the base rate (which would be great right now). It seems to me that the A&L are changing the definition retrospectively to suit their own needs and then fob me off with a poor explanation. I have now formally complained about the wording but expect their reply to be the same as per the phone conversation. I'm quite happy to take the matter to the financial ombudmens as this is not the first piece of misinformation I've had from the A&L

Is anyone else in a similar position or recently had their fixed rate mortgage come to an end? Did you end up on the SVR?

Any advice would be greatly appreciated.

Fliss_M

Sorry to be the bearer of bad news but am afraid to me 'basic rate' does seem to imply SVR. As my A&L terms read 'expiry of the fixed rate period the premium rate, a variable rate, will be 0.990% above the bank of England rate ' As I go onto a tracker for the term
So if A&L had meant you go onto Bank of England rate, I think they would have said it.

davecon1

Thanks for your reply- that's good news for you going on to a tracker!

I see where you're coming from as your terms are very clear but mine are still not clear. Nothing should be left to chance or interpretation on a mortgage offer.

Chances are I will leave the A&L anyway as their customer service is appalling and their SVR is terrible.

feisty1

Each bank had their own base rate which is the svr you are referring to, so writing on behalf of A&L one would refer to it as the bank's base rate. BBR

If referring to the Bank of England base rate, it would read BoEBR

Quote: "I had assumed it" .......you know what the acronym ASSUME means!