Absolutely Disgusted with the Coventry

Mycull

I have a Flex for Term BTL mortgage with the coventry building society.  I was expecting the monthly payments to drop for the April payment but they didnt (even though the BOE has dropped the base rate twice), I have emailed the coventry and they say that although the product is Flexible they arent obliged to drop the rate.  Which is annoying as when the rates last went up they adjusted the rate for the very next month.  Now its going in my favour for once they aren't playing ball.  I have checked again for the May payment but still the same old rate.  Surely this cant be correct ?

cymruchris

It depends on the detail of the mortgage you signed up for. It would have been stated in the terms and conditions as to how the interest rate would be applied in relation to BOE movements. It may be that it won't drop beyond a certain point - you probably need to dig out and take a look as to what you signed up to. 

Mycull

the reply from them was they werent obliged to although the product was labelled Flex for Term and it went up with the last rate increase. It was previously lower so there is no floor at play here

dunstonh

 I was expecting the monthly payments to drop for the April payment 

Why were you expecting that?  It isn't a tracker.

cymruchris

Mycull said:

the reply from them was they werent obliged to although the product was labelled Flex for Term and it went up with the last rate increase. It was previously lower so there is no floor at play here

As I say - you'll have to look at the small print of the deal you signed up for. There are many mortgages where they have the right to put up/down the rate as they please, and not within specified time-frames in relation to BOE movements. And yes, they are usually quick to put up, and slow to bring down, unless it's specified in their T&C's. It's a bit like the price of petrol - goes up like a shot, takes ages to come down. 

Mycull

dunstonh said:

 I was expecting the monthly payments to drop for the April payment 

Why were you expecting that?  It isn't a tracker.

As its a flexible mortgage (ie moves with the base rate) / not a fixed mortgage

Mycull

Either way its discraceful.  Knowing what I now know I would have just as well to opt for a fixed term instead. at least it wouldnt go up

cymruchris

Mycull said:

Either way its discraceful.  Knowing what I now know I would have just as well to opt for a fixed term instead. at least it wouldnt go up

It would have been in  your original mortgage offer - but many people don't read the small print (and don't worry not having a go at you - you're one of thousands!) - maybe when the time is right you can move over to a fixed rate or a tracker with another provider? For now, you're stuck with what you have, and are at the mercy of rates dropping when they decide to do so (if at all) along the lines of whatever was printed in your T&C's. 

ACG

Most lenders now revert to their SVR which is linked to their own base rate (rather than the Bank of England). 
You need to check what your paperwork says, if it is linked to the BoE base rate, then they are obliged I would have thought to lower the rate/repayments. If it is linked to anything else then they are probably not. 

csgohan4

OP please copy and paste what is in the relevant T+Cs here, I can't see it from here, if you feel you have a case, put in a complaint into the lender. 

Does your rate have a floor limit under which it will not go? a comment of 'It was previously lower so there is no floor at play here' is of no use as that is not what is said in your contract so stop speculating and paraphrase what it is in your contract

Thrugelmir

Coventry BS funds their BTL mortgage book by using commercial money sources not retail deposits. This funding stream has no correlation to BOE base rate. The demand for securtised BTL mortgage debt isn't high at the moment for obvious reasons.