MSE News: Just five big mortgage lenders commit to cutting their SVRs after base...

MSE_Luke

Mortgage providers appear reluctant to commit to reducing their standard variable rates following the base rate cut...

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'Just five big mortgage lenders commit to cutting their SVRs after base rate drop'

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Thrugelmir

Mortgage providers appear reluctant to commit to reducing their standard variable rates following the base rate cut...

Why do you think that they should? I'd be interested to know.

D_M_E

And so the cycle continues - bases rates cut, Bank of England printing banknotes they cannot afford to redeem - I mean another tranche of Quantative Easing, at least that's what they call it but it's just more banknotes out on the streets - savings rates cut to nothing - we will all be paying banks and the like to hold our savings soon - and the Government urging us all to do as they do and spend money we don't have and keep on borrowing to spend, spend, spend, Just like the Government, really.

What needs to happen is for people to stop borrowing and hopefully this latest cut in interest rates will encourage more to pay more off their mortgage and/or pay off their debts and not go on a neverending spending spree which they cannot afford.

Shame the Government cannot do the same.

bobbly

One of the features touted by Nationwide is that they calculate your interest daily.

If you are on their BMR product, then your interest rate is guaranteed to be no more than 2 percentage points above the BoE base rate. In effect, this means it has been 2.5% for the past several years.

The base rate has just fallen to 0.25%, but Nationwide say they are not going to be changing their BMR interest rate until 1 September.

This means that every daily interest calculation for the rest of this month will actually use a rate that is 2.25 percentage points above the base rate. That doesn't seem to fit in with their guarantee - are they allowed to delay it like this?

Dolly67

I have a similar tracker mortgage and have received a letter saying the rate will go down on 1st September. Why so long after the bank base rate reduced? No doubt if it had been an increase it would have been applied 1st August!

Thrugelmir

Dolly67 wrote: »

I have a similar tracker mortgage and have received a letter saying the rate will go down on 1st September. Why so long after the bank base rate reduced? No doubt if it had been an increase it would have been applied 1st August!

The requirement for the lender to give notice of a change in interest rate works both ways. Lenders cannot backdate changes.

MotheroftheKid

I'm on a 2% above base with IF and waiting to see if they reduce it accordingly. Shall dig out my paperwork later.