TSB rates pre-BOE rise

Paton147

Throughout June and July I phoned the TSB about remortgaging to a fixed deal and was told I had to wait till their IT issue was sorted, but “don’t worry, you won’t be out of pocket”.

When the BoE rate rose 0.25% and I phoned again and was told, don’t worry, we will back date your deal. But it was only at this point however I learned there were no rates for remortgaging rates to benchmark! I though the rates were their, they just couldn’t apply them.

At the moment they are offering a 2 year fix to existing customers with an LTV 60-75% at 1.48%, this is the same rate as they offer new customers, just less the £995 product fee.

So my question is, what offers were their to new customers prior to the BoE rise? News articles suggest these rates increased by 0.1%.

Is it fair to argue therefore that the equivalent remortgage rate in June/July would have been 1.38%, the same as that for new customers.... which is lower than the 1.48% as it stands now.

I can’t find any archived rates to put to TSB to benchmark where or not I am out of pocket having had to wait on their IT being fixed... which only came days after the BoE increased!!!

middleclassbutpoor

How much is your mortgage and what difference is the monthly payment over the 2 years?

Would this really make much difference if they are waiving the application fee?

Bearing in mind you will now have the fixed rate - until you know what the interest rates are following when you would have come off the 2 years rate had you taken it at the time you wanted, will you know if you have truly been out of pocket. For example - if BOE rate is 2% in 2 years time, you have benefited now with the BOE being where it is at the moment.

Paton147

The mortgage is going to be £480 if we fix with them at 1.48% for 2 years. It just angers me that they finally got their system up and running after the BoE increase... had it not been a complete shambles and they had been ready in July, wouldn’t the rate have been 1.38% or even lower? 1.28%?

What makes it worse is they didn’t even generate a competitive interim rate to then honour when the system did go live.

Hence why I wondered if anyone moved to the tsb earlier this year as a new customer on a 2 year fix. The remortgage and new customer rate appear to be the same.

Thrugelmir

Paton147 wrote: »

which only came days after the BoE increased!!!

Fixed rates aren't determined by the rate at which the BOE lends to the banks to provide overnight liquidity. Instead they are determined by market swap rates, the cost of interest paid on fixed term deposits, availability of funds through other BOE schemes, such as the now closed Funding for Lending scheme.

middleclassbutpoor

Here you go - look at the illustrative rates on this page taken in July 18.

https://trussle.com/lenders/tsb

Lowest 2 yr fixed rate then 1.49% - Will you be asking them to increase your rate now?