Standard Life changing SVR but not due to BOE

MisterC_2

Thanks for all the replies,

Those who say I knew what I was signing up for (I note most of you are advisers so it's obvious to you)yes, in my perhaps tiny mind I signed up for a variable discounted rate.

The variable portion I thought was variable in that it can change subject to banks changing rates, the only thing I have historically seen or known of through all my different mortgages I have had in my life - I was very surprised to see them shift their rates not based on a BOE change. Granted it's a small change this time but what happens next time and the time after etc etc

For me I shall put it down to education and when I remortgage next time I shall check just exactly what and why the rate can change (If go for variable).

As a side issue to Mr helpful who asked if a dictionary should be issued by the broker, could I suggest you asking how many of your clients are aware that their bank could increase their variable/discounted rates with out a linked BOE rate increase. I would wager that not many of them are aware of it and as I did simply believe the only thing that would increase ones mortgage interest rate was a BOE rate increae.

sarkin

yeah its a shame that this is happening as its another black mark against mortgage lenders.

dunstonh

oops meant to quote not thanks...

Why is it a black mark? You should never assume anything and when lending increasingly become more dependent on external borrowing/money markets rather than savings, then this was inevitable.

Dan_Collins_2

1.Yes
2.Nothing
3.No chance!

I am sorry to sound harsh but you cannot have your cake and eat it! They offer you a discount from the SVR the SVR has no tie to the BBR so can go up or down when the bank feels like it. However Standard life are not an unfair lender and I think you are being a little hard on them.

Money markets are changing all the time and its not always the BBR that predicts rates.

You should have taken a BBR tracker rather than an SVR discount. Maybe even a fixed if increases are not helping you now!

jonewer

1. Can they legally do this ?

Yes

1. What's to stop them doing this whenever they like ?

Offer them your daughter?

1. I am upset by this...

Boo hoo. Read the small print next time.