Who is passing on the new rate reduction?

Mike1999

michaels wrote: »

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.

Hi michaels, I just took a look at the blog and they seemed to have answered your question (assuming that was you of course!)

For everyone else, here's the updated table:


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

Good spot! :rotfl:

sandspider2000

Thanks Mike.

Does the * mean HSBC will reduce their rates even further, or that they will confirm the SVR is 3.94 in a few days? (I have an application in progress with them, and the SVR is apparently 3.94, but I wonder if it (and their fixed rates) will drop any further...)

Thanks for any clarification.

Giles

dannykos

alliance & leicester SVR still wrong...

popculturegirl

bristol and west's rate is 3.49 since the feb rate cut...no news on march but my guess is no

michaels

Was 3.94 before the March cut, hopefully this implies they will go to 3.44 but they did noyt pass on any of the Feb cut so I suspect they won't again if they think they can get away with it. I would be careful going with them for a mortgage as I never will again after having been treated so poorly over the rate cuts not being passed on I no longer trust them.

sandspider2000 wrote: »

Thanks Mike.

Does the * mean HSBC will reduce their rates even further, or that they will confirm the SVR is 3.94 in a few days? (I have an application in progress with them, and the SVR is apparently 3.94, but I wonder if it (and their fixed rates) will drop any further...)

Thanks for any clarification.

Giles

RobertoMoir

samsuka wrote: »

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

Imagine that. A business that tries to make a profit. Vauxhall aside, that's actually quite normal.

If they're not obliged under the terms of their contract with you to pass a reduction on then it isn't "dodgy" of them to fail to do so.

Just because the UK govt. is apparently intent on jumping over a cliff, it doesn't mean that businesses in the UK have to follow them. You might think it's a poor choice for generating new mortgage business and retaining the business of people who are eligible to move, but it is up to them.

michaels

Margin_Walker wrote: »

I work for HSBC so make of that what you will kids... Would just like to make clear that any posts I make on this forum in no way represent the views or position of HSBC bank ect...

I don't suppose the size of any bonus you get paid depends on HSBCs profitability?

I have posted elsewhere a rough estimate of how much more HSBC are making out of their svr borrowers as a result of the increased margin between their svr and libor or if they fund internally it is worth noting that on their best paying savings accounts they have passed on all the cuts. The reason for the Govt to cut rates is to try to boost spending in the economy to try to keep as many people in jobs as possible, not for HSBC to pad their profits and pay for their losses or their disasterous US adventure.

ToMoCo

popculturegirl wrote: »

bristol and west's rate is 3.49 since the feb rate cut...no news on march but my guess is no

I have a mortgage with Bristol & West. It states the the SVR will be no more than 2.5% above BoE Base Rate.

nickmax1

Hmm, i have a B&W mortgage as well but cant find any proof that they say they will be no more than 2.5% above base. I just hope they (sooner rather than later) make up their mind about passing on the cut. They are normally quick, so this isnt a good sign.

Peelerfart

RobertoMoir wrote: »

Imagine that. A business that tries to make a profit. Vauxhall aside, that's actually quite normal.

I think you've forgotten about Corus !