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MSE News: Mortgage lenders fail to pass on base rate cuts

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MSE News: Mortgage lenders fail to pass on base rate cuts

edited 30 November -1 at 1:00AM in Mortgages & Endowments
9 replies 1.3K views
Former_MSE_HelenFormer_MSE_Helen
2.4K posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
This is the discussion thread for the following MSE News Story:

"A Which? survey shows that 95% of lenders failed to fully pass on cuts in base rate to consumers ..."

Replies

  • FunkygibbonFunkygibbon Forumite
    376 posts
    Wow! That is a surprise!!!!
  • ultrawombleultrawomble Forumite
    492 posts
    No surprises there - SVR is not a BoE base rate tracker.
  • mrmartmrmart Forumite
    10 posts
    Why would they do something for the good of their customers? Of course they wouldn't.

    I am with Chelsea BS and their SVR is 5.79% so almost the top end. Considering I had a fix with them in 2007 for 5.49 not much has changed since then.

    Hoping to move over to a fix soon just playing with LTV to get best fix with them which again isn't great ca. BR+ 3.29% minimum but for higher LTV 4-5%.
  • Butterfly_BrainButterfly_Brain Forumite
    8.8K posts
    Part of the Furniture 1,000 Posts I've been Money Tipped! Post of the Month
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    Bankers! ..........say no more :mad:
    Blessed are the cracked for they are the ones that let in the light
    C.R.A.P R.O.L.L.Z. Member #35 Butterfly Brain + OH - Foraging Fixers
    Not Buying it 2015!
  • GMSGMS Forumite
    5.4K posts
    Which? have decided to come out with a statement which is factually inaccurate as SVR in general has nothing whatsoever to do with base rates.

    In doing so they have highlighted to thousands of people that they may be better with a fixed rate mortgage. This coincides with the launch to the general public of Which? mortgage advice.

    Coincidence? I think not. Advertising for free more like. Worrying though to think they will be offering advice without a clear understanding of how lending works.
    I am a Mortgage Adviser
    You 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.
  • michaelsmichaels Forumite
    24.9K posts
    Part of the Furniture 10,000 Posts Name Dropper
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    Funnily enough I had mentioned this issue in my signature for 2 years but a few months ago it was deemed unsuitable (by the powers that be at MSE) to remind people that even though HSBC had been marketing themselves as 'having the most competitive SVR of the big banks', when the base rate fell they only passed on half the reduction to borrowers but deducted it all from savers rates, leaving their svr 60% higher than LTSB and Nationwide even though their savings rates were uncompetitive as they took advantage of their perceived financial strength to attract deposits at uncompetitive rates.
    I think....
  • kingstreetkingstreet Forumite
    36.3K posts
    Ninth Anniversary 10,000 Posts Photogenic I've helped Parliament
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    My first thought was welcome to Spring 2009...

    Then I thought the same as GMS.
    I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.
  • handytipshandytips Forumite
    372 posts
    Perhaps MSE Helen Would now like to explain to the General Public, on the ins and outs of Swap Rates. Good Luck with that one Helen
    I am a Mortgage Advisor. You should note that this site does not 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 shouldnt be seen as financial advice.

  • ConsumeristConsumerist Forumite
    5.4K posts
    Part of the Furniture 1,000 Posts Name Dropper
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    "For borrowers anticipating difficulty, however, the message remains unchanged. They should speak to their lender as soon as possible if they are struggling to meet their repayments, and lenders are committed to helping them wherever they can do so."
    . . . and if they can't help, they will be applying for a repossession order as soon as you put the phone down.
    >:)Warning: In the kingdom of the blind, the one-eyed man is king.
This discussion has been closed.

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