Rate cuts and the local banks

leskerr

thriftyminx13 wrote: »

I don't think the banks can afford to pass on the cuts. anymore cuts to their own mortgage base rate tracker rates and they'd have to pay us! i didn't get anything else taken off my northern bank base rate tracker mortgage since jan/feb so maybe it's capped?

The Northern's tracker rates were changed on 1 March to reflect the BOE base rate change in Jan.

The BOE rate change last Thursday will be reflected in NB trackers on 1 April - see Northern Bank home page:
http://www.northernbank.co.uk/en-gb/Pages/default.aspx

snowmen wrote: »

if it bothers you that the main local banks aren't passing on the interest rates decreases then just move provider and look outside the "big" four.

I don't think moving a mortgage is just as simple as that!
Also, just because a bank is in the "big four" does not mean it's rates won't be as good the smaller (locally) banks - check out the FSA comparison tables.

Les

kudos

36square wrote: »

Kudos
You confuse me. If your mortgage is on Progressive's SVR, why do you have a redemption penalty? Unless it's a tracker linked to the SVR which is nearly always a bad deal since you're at the mercy of the lender.

Kiwicoop
Much as a I despise the local banks and pity those who use them, it is normal practice for lenders to alter rates from the beginning of the following month. The only mortgage rate that might change immediately is one linked to Base Rate.

36square - I never mentioned I was on their SVR. I've a discounted deal and quite clearly states redemption is payable if I move during discount period.

36square

kudos wrote: »

36square - I never mentioned I was on their SVR. I've a discounted deal and quite clearly states redemption is payable if I move during discount period.

Presumably a discount from Progressive's SVR which it is proving reluctant to cut. As a pointed out before, discounted from SVRs are nto good deals as you are finding out.
I hope you manage to find a deal that compensates you for the redemption penalty.

tamsine_2

Is anyone else confused by the massive rate cuts and how much their mortgage has come down as I had expected mine to come down more than it has? My mortgage tracks at 0.59% above the base rate and with a £110,000 repayment mortgage, my rate has come down from around £750 to £550. Obviously I'm very happy with this but at the same time I can't help thinking that it should be more as it's gone from 5.59% to 1.59% and will be coming down again. Some people's mortgages seem to have come down a lot more. Does this add up? I havent got a cap. Any light shed would be much appreciated

36square

Tamsine
It looks as if you're repaying more of your mortgage, maybe more of it than you want to as it's only costing you 1.59%. If your mortgage was interest only, I reckon you'd be paying less than £150 per month now and looking forward to less than £100 month. Repayment mortgages aren't always a good idea.

Golden_Anemone

36square wrote: »

Tamsine
It looks as if you're repaying more of your mortgage, maybe more of it than you want to as it's only costing you 1.59%. If your mortgage was interest only, I reckon you'd be paying less than £150 per month now and looking forward to less than £100 month. Repayment mortgages aren't always a good idea.

Surely with an interest only mortgage you need another way to pay back the capital at the end of the term and endowments just aren't reliable.

36square

Golden_Anemone wrote: »

Surely with an interest only mortgage you need another way to pay back the capital at the end of the term and endowments just aren't reliable.

You can still pay back capital on an interest only mortgage, the difference is that you rather than the lender decides when and how much to pay back. Do lenders still ask for endowments? I haven't got one and I've got an interest-only mortgage.

thriftyminx13

leskerr wrote: »

The Northern's tracker rates were changed on 1 March to reflect the BOE base rate change in Jan.

The BOE rate change last Thursday will be reflected in NB trackers on 1 April - see Northern Bank home page:
http://www.northernbank.co.uk/en-gb/Pages/default.aspx


Les

Got my letter through reducing my mortgage again!!!! It's crazily low now. :T

Golden_Anemone

Right - yesterday I got the letter telling me that the Northern Base rate was 1% from 1st March, my tracker interest rate was 1.25% and the new payment would apply from 15 April. Why not 15th March? And as the Base rate reduced to 0.5% from 1st April are they going to leave the next reduction until May? I don't mind if the additional payment is coming off my capital but I really wish they'd communicate better with customers.