Who is passing on the new rate reduction?

michaels

Something wrong with this table. Take for example HSBC.

Start of October SVR was 1.25% above base rate (6.25%, 5%) after Jan rate cut difference was 2.44% (3.94%, 1.5%) so of 3.5% cut in base rate HSBC have only passed on 2.31% or 65% of the reduction not the 77% quoted.

Especially annoying as prior to this HSBC always made a point about how they were much more competitive with their SVR than the likes of Lloyds TSB and Nationwide but prove that customer loyalty conts for nothing when there is a chance to increase margins.

Mike1999 wrote: »

The BBC have quite a good table showing changes (and a column for Total SVR cut since Oct 08):

http://news.bbc.co.uk/1/hi/business/7872344.stm

That is a really good table on the BBC. I also saw a table on a mortgage blog which has taken the BBC information and listed lenders according to their standard variable rate and base rate and the percentage benefit passed on to customers since Oct 08 - I hope no one has their mortgage with Chelsea as they are literally taking the p1ss!!




http://www.mortgagesforbusiness.co.uk/content/News/Blog/BuytoLetBlog.aspx

samsuka

Mike1999 wrote: »

The BBC have quite a good table showing
That is a really good table on the BBC. I also saw a table on a mortgage blog which has taken the BBC information and listed lenders according to their standard variable rate and base rate and the percentage benefit passed on to customers since Oct 08 - I hope no one has their mortgage with Chelsea as they are literally taking the p1ss!!

Unfortunately i am with Chelsea, and am beyond furious that they are not passing on any rate cuts. I have complained to them a number of times, as from what i hear have lots of other customers, but get the same old weak excuses. They were trying to say that they have good savings rates, but i haven't been able to find an example of them with a decent savings rates anywhere.

Surely there must be something dodgy about this. They aren't offering high savings rates, and they aren't passing on the rate cuts, so does this just mean they are pocketing the large discrepancy as profit?

Thanks

S

RiaMac_2

Hi All

Having a bit of a problem deciding what to do. Hope you can help

Have 13 years left on our mortgage and was thinking of taking a 5 year fixed. Haven't looked at rates yet 'cos thought it a bit soon for the latest cut to have filtered through. House has been valued at upwards of £130k and need remortgage of £55k. Problem is I have been told if I took a 5 year fixed, when this ended I would find it difficult to get another one for 8 years. Is this true? Also, would really like the mortgage to be paid off sooner, so my next problem is save the difference between what I am paying now and what I would be paying with the new deal or make regular overpayments?

Would appreciate your help. Thanks.
:beer:

Riog

Yet another month where yorkshire building society does not pass on the rate cut.
Thankfully will be able to transfer away in a few months.

Mike1999

Seeing as this went down quite well last time I thought I would post up the updated graph regarding those lenders who have passed on the base rate cut. It seems that more lenders are doing it now and this time the mortgage blog peeps have highlighted those who have already passed thigns on in Green.



http://www.mortgagesforbusiness.co.uk/blogs/detail/Lender_SVR_cuts_are_getting_better_after_March_BBR_reduction_11032009/3986/187.aspx

Looking good if you're Lloydstsb customer and pretty dire if you're GE Money and Chelsea!

dannykos

alliance & leicester's SVR is 4.99 not 5.09

michaels

Strange table - it excludes the 0.5% reduction in base rates at the start of October but includes the lenders reductions in response to this (hence the 4.5% drop at LTSB). Start of October the base rate was 5% and now it is 0.5% - I make that a 4.5% cut with only LTSB pasing this on in full.

Mike1999 wrote: »

Seeing as this went down quite well last time I thought I would post up the updated graph regarding those lenders who have passed on the base rate cut. It seems that more lenders are doing it now and this time the mortgage blog peeps have highlighted those who have already passed things on in Green.



http://www.mortgagesforbusiness.co.uk/blogs/detail/Lender_SVR_cuts_are_getting_better_after_March_BBR_reduction_11032009/3986/187.aspx

Looking good if you're Lloydstsb customer and pretty dire if you're GE Money and Chelsea!

iwblue

Yet another BOE cut and no response form Market Harborough building society. I'm still having to pay 5.49%. Only response I had to my complaint letter was they have to balance the interest of savers against borrowers!! However non of their savings rates are in the best buy tables??

Tinka21

iwblue wrote: »

Yet another BOE cut and no response form Market Harborough building society. I'm still having to pay 5.49%. Only response I had to my complaint letter was they have to balance the interest of savers against borrowers!! However non of their savings rates are in the best buy tables??

Balancing the rates does not mean they have to be in the best buy tables. If building societies get the balance wrong then they will go under no questions. Remember they do not have to make profit as they have no shareholders only members.

It would be nice if everybody could cut their interest rates by the full amount each time and it's annoying when some do and some don't, but I would like to see the few remaining societies actually make it through this awful financial time and not disappear like so many already have.

iwblue

Tinka21 wrote: »

Balancing the rates does not mean they have to be in the best buy tables. If building societies get the balance wrong then they will go under no questions. Remember they do not have to make profit as they have no shareholders only members.

It would be nice if everybody could cut their interest rates by the full amount each time and it's annoying when some do and some don't, but I would like to see the few remaining societies actually make it through this awful financial time and not disappear like so many already have.

I take your point, however Market Harborough building society savings rates can at best, only be described as derisory.