Advice on Interest Rates rises

DustyG1973

Good morning,
I am hoping there is someone out there who can advise.  This morning I received a letter from my mortgage lender Birmingham Midshires to advise that they have changed their interest rates to 1.24%.  I have been with them since 2007 and my product agreement is 0.99% above BBR.  Previously any Bank of England base rate change has been reflected as per my product agreement.  I am unsure if this is something they should be doing? Is there anything I can do. Naturally during the pandemic its impossible to reach them.  So essentially they are able to borrow money at a much reduced rate whilst increasing interest rates for current customers.
Any advice useful.
Yours DustyG1973

TadleyBaggie

Confused, if you were BBR + 0.99% does that mean you were on a 1.49% deal before and but now on 1.34% (1.24% + 0.1%)?

DustyG1973

Hi TadleyBaggie,
my product agreement is a variable rate that is 0.99% above BBR.  The letter means that moving forward they have increased that to 1.24% above BBR. The deal fluctuates each time there is a BBR change but previously always at 0.99% above BBR. 
Hope that makes more sense. 

[Deleted User]

Does it definitely state that 1.24% is the amount above BBR?  More likely is that the letter was produced when base rate went to 0.25% and that the 1.24% figure was the new interest rate. 

Obviously, that figure is now out of date, and you would expect another letter shortly.

DustyG1973

zx81 i think you might be correct.  Doh  Ive never been good with figures.  thanks for your time people.  

csgohan4

bare in mind some products have a floor level which don't go below