MSE News: Some tracker mortgage rate rises to hit TODAY

Former_MSE_Callum

Some banks will begin raising mortgage rates immediately, in the wake of the Bank of England's decision to increase the base rate to 0.5%...

Read the full story:
'Some tracker mortgage rate rises to hit TODAY'

Click reply below to discuss. If you haven’t already, join the forum to reply.

liviboy

I think that's fair enough...the clue is in the name - the rate is meant to "track" the base rate...

kingstreet

Normally, such increases/reductions take place from 1st of the following month.

obay

kingstreet wrote: »

Normally, such increases/reductions take place from 1st of the following month.

Just remember, when they took the 0.25% off it was weeks before they reduced it, now it's gone up, it's a matter of seconds..

kingstreet

obay wrote: »

Just remember, when they took the 0.25% off it was weeks before they reduced it, now it's gone up, it's a matter of seconds..

On an SVR maybe, not usually on a tracker.

All the trackers I know change on the 1st of the month following the base rate change, whether up or down...

"Those customers who are currently on a NatWest tracker deal will see the rate on their mortgage increase by 0.25% from Friday 1 December 2017"

is an example.

KTF

There is something very wrong if people haven't factored in a 0.25% increase in payments each month.

kingstreet

Now Barclays;-

"and for existing Barclays tracker mortgage customers the new rate will come into effect from 1st December 2017"

so no news here either...

ACG

Virgin Money
Existing customers

Customers whose mortgage rate is directly linked to the Bank of England Base Rate will be contacted to advise that their monthly payment will change on 1 January 2018 in line with their mortgage terms and conditions.

JuicyJesus

KTF wrote: »

There is something very wrong if people haven't factored in a 0.25% increase in payments each month.

The FCA put in place new mortgage requirements for lenders to assess affordability based on the prospect of interest rates rising several percent. MSE (the main site) lost its mind and started screaming about how unfair it was.

Now look at it.

Gorgeous_George

Tracker mortgages track something.

Mine tracks the BofE base rate + 0.89%. I think I'll survive this one.

GG

Amst

If a 0.25% rise seriously impacts your monthly outgoings (irrespective of the size of the mortgage) then you shouldn't own a home and should rent instead for the security of fixed payments each month.