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Mortgage interest rate
i_like_you
Posts: 3 Newbie
Can anyone give me some advice?
When the BOE increased their base rate by .25% in Aug, my lender (The Loughborough) increased my rate by .3%. Now that the BOE have increased the base rate again by another .25% I'm worried that my lender will increase my rate by another .3%, having then added .1% extra onto my interest rate and exeeding the BOE increase. I feel this is unfair especially when the big boys such as Halifax and Nationwide have mirrored the .25% increase. Surely interest is a 'charge' and what if anything justifies the extra .1% that my lender feels necessary to charge me for? Mortgages are very expensive and a lot of money is involved so can anyone give me some advice on this?
When the BOE increased their base rate by .25% in Aug, my lender (The Loughborough) increased my rate by .3%. Now that the BOE have increased the base rate again by another .25% I'm worried that my lender will increase my rate by another .3%, having then added .1% extra onto my interest rate and exeeding the BOE increase. I feel this is unfair especially when the big boys such as Halifax and Nationwide have mirrored the .25% increase. Surely interest is a 'charge' and what if anything justifies the extra .1% that my lender feels necessary to charge me for? Mortgages are very expensive and a lot of money is involved so can anyone give me some advice on this?
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Comments
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AM i right in guessing your current deal is not a BoE tracker deal?
If it is not, then the lender can put its rates up to whatever level it wants unfortunatelyI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks for the advice. No I'm not on a tracker rate, just a discounted variable, looks like I'm open to the possible onslaught of rate increases then !!0
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First rule of mortgages - always get a base rate tracker, not a discounted variable.
The lender can raise their SVR whenever and by however much they like.
Still, you live and learn.0
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