how quick do building societys act when...

skint69

the BOE rate is due to change, on the news they kinda predict a 0.5% drop or rise but are sometimes wrong and its 1.5%.

i ask this as my nationwide 5 year fix ends 1st apr-i will probs go on there 3.5% bmr
and i will use there switcher online facility to swap once things start to rise.
i can switch with the click of a mouse but will they have thought ahead and have already put rates up before the boe rate is annouced?

robnye

the nationwide website has already stated that thye will drop their base rate from 1st march..... this was released within hours of the BOE decision

skint69

so they take a month to drop there base rate but i wonder how quick they are to raise there rates!

opinions4u

skint69 wrote: »

so they take a month to drop there base rate but i wonder how quick they are to raise there rates!

The majority of mainstream lenders apply changes from the 1st of the following month, whether upwards or downwards.

There may be exceptions to this, but your paranoia about the big bad lenders is unneccessary.

They like to drop their customers a line before increasing their direct debits.

dimbo61

If your mortgage payment is going to drop on the 1st april 2009 why not ask your lender to keep your payment static and therefore overpay each month.
Then when you want to fix you wont see a big jump in your payments and you will have a slightly smaller mortgage balance.

skint69

yup good point you make there dimbo, currently im paying 360 a month, it will go down to 279 once the bmr is 3% so i wont notice the £80 in my pocket really,may as well overpay and once rates show a sign of changing i will fix.