Mortgage Interest rates

Legacy_user

When the Bank of England change interest rates my mortgage payments do not change. It is not a fixed mortgage and is repayment.
I asked my mortgage provider why my payments do not change and I was told that they do not use the Bank of England rates but they will not tell me whose rates they do use. Does anynone know where I can get this information so that I can find out if my payments should have changed.

Thanks in anticipation


Mister Q

MacMickster

Your mortgage provider uses your mortgage provider's interest rates.

_Andy_

Mister_Q wrote: »

When the Bank of England change interest rates my mortgage payments do not change. It is not a fixed mortgage and is repayment.
I asked my mortgage provider why my payments do not change and I was told that they do not use the Bank of England rates but they will not tell me whose rates they do use. Does anynone know where I can get this information so that I can find out if my payments should have changed.

Thanks in anticipation


Mister Q

If you're on a standard variable rate they can change them as they wish. They are not obliged to tell you their reasons.
If you want a rate where it goes up and down in line with the BOE base rate then you will need to find a BOE tracker rate product instead.

kingstreet

If you took out the mortgage after 1 November 2004 you should have received a key facts illustration, followed later by a mortgage offer. Section 4 of the KFI will clearly show the rate at the outset and any follow-on rate which applies. It will also be contained in your mortgage offer.

Typically, the follow-on rate will be the lender's standard variable rate, over which it has complete control and discretion. Alternatively, as you suggest it could track the Bank of England base rate, or again it could track LIBOR, the three-month London Interbank Rate.

jimjames

Bank of England base rates have not changed now for well over 2 years so when were you expecting a rate change on your mortgage?

If the rate has changed but your payment has not then you may be paying your mortgage faster. It is possible that your mortgage is one where the payment only changes yearly even if the base rate changes during the year.

TC1

Sorry to hijack your thread but it's a similar query

Could the BBBR (Barclays Bank Base rate) change at any given time apart from when the BOE rate changes and has this ever happened ?

TC1

opinions4u

TC1 wrote: »

Sorry to hijack your thread but it's a similar query

Could the BBBR (Barclays Bank Base rate) change at any given time apart from when the BOE rate changes and has this ever happened ?

TC1

It could, but for as long as I can remember it never has done.

Jsaon_Drakes

I think bank of England has not changed its mortgage rate. But I think you are paying your mortgage more quickly than it is required. Thats why you are not effected by mortgage rate.