Abbey - why haven't they reduced their SVR?

juniper1

I don't know whether anyone has posted about this before but I have a mortgage with the Abbey whose SVR (standard variable rate) is sitting at 4.94%. I am considering writing to the Abbey and asking why when Bank Base was at 5% their SVR was at 6.94% (1.94% above base) and now that Bank Base is at 0.5% the SVR is at 4.44% above base! Other lenders, i.e Nationwide, Halifax etc,. have reduced their SVR to a more reasonable level, i.e 3.5% and 3.00 respectively.
I came off a fixed rate with the Abbey in January and am waiting for a good deal to come out from either them or someone else but are we benefiting from the Bank Base rate drop - NO! And we are losing money because of savings so whilst others are benefiting from their lenders amending their SVR's I and many many other people are losing out big time.
Is it because they are owned by Santander? i.e. a foreign company.
Does anyone know? Is it because their savings rates are higher than other institutions?
I feel quite strongly about this. I used to be a mortgage underwriter so have always been keen to follow rates obviously but I think I and all the other people in the same position as myself are being penalised here.
I'd be interested to know what other people think and what you think I should do.

beecher

I don't think you can do anything - if you want a rate which tracks the base rate then you need a tracker.

According to this http://news.bbc.co.uk/1/hi/business/7711689.stm#TABLE the SVR is at 4.24% if that helps

davidla

From April 2 (I think) Abbey's SVR will be 4.24%. At present it is 4.69%.
Feel better now?