Hsbc

michaels

abwsco wrote: »

Thanks.

michaels, is your problem the fact that HSBC haven't reduced your mortgage rate as much as you'd like or that you're on a higher fixed rate and stuck with that. Sorry if I'm being really dense.

If I had chosen a fixed for security I wouldn't be able to complain.

Before the rate cuts started the HSBC svr was 1.25% above base rate (and had been that or closer for more than 10 years). Now it is 3.44% above. This means they have passed on much less of the cuts than banks like Nationwide and LTSB. I know they are not the only offenders but given their strong financial position the amount they have to pay for funds over the base rate has only gone up by 0.7% but the spread (ie their profit margin) has gone up by nearly 2.25% - this equates to an increased profit of £1,500 per 100k of mortgage lending per year.

abwsco

michaels wrote: »

If I had chosen a fixed for security I wouldn't be able to complain.

Before the rate cuts started the HSBC svr was 1.25% above base rate (and had been that or closer for more than 10 years). Now it is 3.44% above. This means they have passed on much less of the cuts than banks like Nationwide and LTSB. I know they are not the only offenders but given their strong financial position the amount they have to pay for funds over the base rate has only gone up by 0.7% but the spread (ie their profit margin) has gone up by nearly 2.25% - this equates to an increased profit of £1,500 per 100k of mortgage lending per year.

Thanks for explaining it for me. Can see what you mean now. Like us with our BS not passing on the rate cuts:( but at least they're not at the rates of 15% which we've had before.