Coventry Building Society NOT cutting rates!

rainmac97

Has anyone else got a Flexx for term mortgage with Coventry Building Society? Today our payment came out, which we expected to be less following the Bank of England rate reductions, but it was the same. I gave them a call and the gentleman said they had not applied the rate cut to the flexx for term. I am fuming. They were quick enough to increase our payments when the interest rates went up! I have put in a complaint as they have let me down big time! The rates have been cut to help the economy but Coventry obviously have other ideas for their flexx for term customers. They are saying they have cut their rates but not al it seems! What a disgrace. 😡

Thrugelmir

Lenders do not fund their mortgages by borrowing at BOE base rate. A common misconception. 

silvercar

I've had a letter reducing my payments from next month.

Thrugelmir

@silvercar What's your mortgage product? 

Glover1862

 

Hi, I have this product and as you say, recent reduction was not passed to Flexx for the term, historically, this product has always tracked the base rate and the last two increases were passed on quite rapidly, I know it is not contractually committed to move with BoE rates, just that it has always done so. On the plus side , it has no early repayment charges so I’m thinking of ditching it if I’m only going to see the downsides ie increases but none of the benefits, also when the base rate next increases it will be from a higher starting point.

 

Maybe, CBS don’t want the customers on their loan book as this is a good way of getting them to move, however I would think most have healthy LTV and decent low risk customers you would want to support, who know but I’d start looking around elsewhere, the no ERC is our best get out card.

 

 

minimike2

rainmac97 said:

 I have put in a complaint as they have let me down big time! The rates have been cut to help the economy but Coventry obviously have other ideas for their flexx for term customers. . 😡

Why have you complained about something which hasn't happened, which isn't part of your product terms?
If you wanted a tracker product, you should have taken a tracker product.

Your claim will not be upheld (should not be upheld) as you have no basis to complain as CBS have not done anything which they should or should not have done as part of the terms of your mortgage.

Glover1862

Just an update on this, it looks like that CBS have made a decision to not pass on the rate cuts for Flexx of term customers, time to ditch them I think, no point if we are only going to get the downside, no doubt when rates rise we’ll get the increases so could get expensive very quickly. 

I understand that they don’t peg the boe rate but have always done, plus they have reduced SRV and privilege customers both not pegged to boe. I think they’ll lose a fair few customers as flexx has no erc

Edi81

Its probably a commercial decision and a way to manage the book to get rid of the product. 
Unless its a contractual condition lenders can choose to increase or decrease rates as they see appropriate. 

Glover1862

Edi81 said:

Its probably a commercial decision and a way to manage the book to get rid of the product. 
Unless its a contractual condition lenders can choose to increase or decrease rates as they see appropriate. 

I’m sure that’s true as they have dropped all variable rates from their current range.

Jason12345678

I'm in the same position with my offset OneAccount mortgage (RBS)
They are always quick enough to pass on increases in base rate but not decreases.
They used to pass on decreases early on with the product but not lately.
I know in my case it is a retired product, they really don't want to to anything to make people want to stay, at least that's what I suspect.

rainmac97

minimike2 said:

rainmac97 said:

 I have put in a complaint as they have let me down big time! The rates have been cut to help the economy but Coventry obviously have other ideas for their flexx for term customers. . 😡

Why have you complained about something which hasn't happened, which isn't part of your product terms?
If you wanted a tracker product, you should have taken a tracker product.

Your claim will not be upheld (should not be upheld) as you have no basis to complain as CBS have not done anything which they should or should not have done as part of the terms of your mortgage.

I have complained because they put the rates up in line with BoE but haven’t reduced. Poor service to loyal customers.  To be fair, I didn’t realise it wasn’t tracking until now as it always has before. That is my misunderstanding, but a reasonable view to have taken. Shame on CBS.