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Lloyds TSB Cheltenham & Glos mortgage promise

edited 30 November -1 at 1:00AM in Mortgages & Endowments
6 replies 3.4K views
AlixdayAlixday Forumite
11 Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
I haven't been able to find anything on the site about this disgraceful climbdown by this lender. They offered a guarantee that their variable rate would be 2% above base and thats why I chose them. They are now saying when you remortgage (including going on to a different deal when your current deal ends) this will no longer apply. So even long-standing customers will have their mortgage shoot up!

Come on Moneysavers, can we do something about this???:(:eek:

Replies

  • ThrugelmirThrugelmir Forumite
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    Alixday wrote: »
    They offered a guarantee that their variable rate would be 2% above base and thats why I chose them.

    So they haven't broken their promise.

    As the taxpayers of the UK have a major stake in LloydsHBOS financially, You'll find it hard to drum up support.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • opinions4uopinions4u
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    The "long-standing customer" has the opportunity to remain on the 2.5% SVR.
    can we do something about this?
    Stay on the SVR instead of choosing another deal.
  • dunstonhdunstonh Forumite
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    I haven't been able to find anything on the site about this disgraceful climbdown by this lender. They offered a guarantee that their variable rate would be 2% above base and thats why I chose them.

    I'm with C&G and no promise has been broken.
    They are now saying when you remortgage (including going on to a different deal when your current deal ends) this will no longer apply.

    Thats fair enough. If you choose to leave your current mortgage deal to buy another then you have to accept the terms of that new deal. It's nothing new and quite acceptable and fair in my opinion.
    So even long-standing customers will have their mortgage shoot up!

    No they are not. Its only those joining C&G or changing their existing deal with C&G. Those remaining on their existing deal terms and conditions keep the promise.
    Come on Moneysavers, can we do something about this??

    If you dont like the terms of the new deals then stay on the old deal. No-one is forcing to change.

    it sounds like you want to have your cake and eat it.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • AlixdayAlixday Forumite
    11 Posts
    The article I read gave the impression this change would apply to existing customers but I have since read, as others have stated here, this is not the case so I was misinformed.

    I don't wish to have my cake and eat it, but simply receive what I was promised.

    As for taxpayers (of which I am one) having a major stake in the bank, this has no bearing on them sticking to their promises.

    This is just another case of the banks now making us pay for their mistakes.
  • ThrugelmirThrugelmir Forumite
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    Alixday wrote: »
    The article I read gave the impression this change would apply to existing customers but I have since read, as others have stated here, this is not the case so I was misinformed.

    I don't wish to have my cake and eat it, but simply receive what I was promised.

    As for taxpayers (of which I am one) having a major stake in the bank, this has no bearing on them sticking to their promises.

    This is just another case of the banks now making us pay for their mistakes.

    Thats very true. However if you could obtain a better rate with another lender. You would vote with your feet. So you could still have your cake and eat it sometime into the future. I suspect you wouldn't promise Lloyds your business for 25 years.
    It's not whether you're right or wrong that's important, but how much money you make when you're right and how much you lose when you're wrong." — George Soros
  • luckyfoolluckyfool Forumite
    1.7K Posts
    Alixday wrote: »
    The article I read gave the impression this change would apply to existing customers but I have since read, as others have stated here, this is not the case so I was misinformed.

    I don't wish to have my cake and eat it, but simply receive what I was promised.

    As for taxpayers (of which I am one) having a major stake in the bank, this has no bearing on them sticking to their promises.

    This is just another case of the banks now making us pay for their mistakes.

    Ok, so you've admitted that you were wrong, that they will actually keep their promise to you, but you still think that "this is just another case of the banks now making us pay for their mistakes."?

    They are keeping their promises to existing customers, what exactly is it you have a problem with them doing? Wanting to lend money on mortgages at a profit rather than retaining a loss-making SVR on new mortgages that they sell (despite any number of other lenders such as Nationwide, Halifax etc also bumping up their SVR's and ditching previous commitments)? As a tax-payer and hence indirect shareholder in the business I'm glad they have made this move.
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