Halifax Standard Variable problem

felixrv

At the end of the day, all it comes down to is which banks/buildings societies are credible and which are not. People don't forget things like this.
Everybody on here is quoting that i don't understand english because of the word 'variable'. I know what variable is, but as you can see there is interpretation in the statement(as they gave an example) and they have covered themselves with the looseness of the statement(and before you start saying variable again, I understand perfectly well.) The banks do have to be careful though as if they start increasing interest rates ( even though the bank of england base rate is at record low )when we are not out of a recession(people aren't earning as much money), they could quite easily cause a depression.

I understand banks have to make money but what I do hope, is the bank will treat me the same in the good times as well as the bad times.

hshen

felixrv wrote: »

At the end of the day, all it comes down to is which banks/buildings societies are credible and which are not. People don't forget things like this.
Everybody on here is quoting that i don't understand english because of the word 'variable'. I know what variable is, but as you can see there is interpretation in the statement(as they gave an example) and they have covered themselves with the looseness of the statement(and before you start saying variable again, I understand perfectly well.) The banks do have to be careful though as if they start increasing interest rates ( even though the bank of england base rate is at record low )when we are not out of a recession(people aren't earning as much money), they could quite easily cause a depression.

I understand banks have to make money but what I do hope, is the bank will treat me the same in the good times as well as the bad times.

Well you obviously don't understand the difference between BoE base rate and long/short term rate banks pay in the capital/deposit market. Plus the fact they need to recoup their money for all the bad loans they writing off.

SVR = cost of borrowing to the lender + profit

Simple.

Any resemblance to BoE base rate is purely to remain competitive with other banks.

In the old days it's always been 3% above saving rate. They called it 3-6-3 system. Borrow from savers at 3%, lend it out at 6% and go home at 3 o'clock!

Now days I believe 3% is pure profiteering and/or rebuilding their lost capital ratio.