Absolutely Disgusted with the Coventry

Sasahara

I had this issue when looking for a mortgage.   The mortgage broker at the estate agent tried to push me into one, but I wanted a BoE tracker.  The non tracking flex gave better rates, and a lower fee.  But I made a choice to go with a slightly more expensive tracker which I got directly from my provider as I didn't want the risk of a higher rate even if it was unlikely. 

I suspect you would have got a worse rate with a BoE tracker, so you really have no complaints.  Your 1.10% above BOE Base rate at the time might have been 1.50% if it was a BoE tracker or higher.

csgohan4

BoutTime said:

csgohan4 said:

dunstonh said:

So it seems those on lower rates subsidise those on higher rates. And my take on this response is that when rates rise they are more likely to pass on the rise to those on lower rates.

Not uncommon when you use an interest rate that is not linked to the Base Rate.

I've complained to them.

...stating that you failed to understand your mortgage and its their fault?

I knew the Flexx For term rate wasn't contractually linked to the BOE Base Rate, but CBS have repeatedly used BOE rate rises to justify a rise in my own rate.

When the net interest margin is higher, you expect changes to somewhat link.  When the net interest margin is lower, you do not.

Only option is to vote with my feet when my endowment matures next year which isn't linked to this mortgage.

...and buy a product that matches what you want.  Don't buy a product that doesn't match what you want and then moan that it is the provider's fault that its not doing what you want.

Ultimately the poster is kicking himself for not going on a tracker now that the rates are so low and finding a way to blame the lender for their own inability of reading their own T+Cs.  Noone could have predicted the interest rate would be this low

Am I annoyed I am not on a tracker rate, no because it was the right product for me at the time. No one has a perfect crystal ball to predict when world changing events will happen

I’m not kicking myself at all. I knew what I was getting. I also asked the broker about this very thing when taking the mortgage. Historically The Coventry have tracked the BOE rate with their Flexx for Term products. Both up and down. Like I was told at the time, if they didn’t then customers would loose confidence and transfer away. Ironically this is what I will likely do next year.

But no where in your T+Cs does it say it has to though, they can raise rates as they see fit, they don't have to reduce your rates either from the BOE.

Again your T+C does not say about the BOE so your points are irrelevant too. However if your on a tracker mortgage, the FCA will be all over them like a rash. 

silvercar

Thanks for the balanced opinion. Much appreciated. To be told by some on here I’m kicking myself for not taking out a tracker, or that my rates are half of what there’s are is irrelevant and inaccurate. I didn’t want a tracker as I didn’t want to have to remortgage every few years. And my rates are low because my LTV is also low. It’s the simple carrot on the stick to get you onboard at an attractive rate. My biggest issue is the likelihood that once the BOE rate goes back up they will push my rate up too just as before. So I’ll be paying more than I ever was. All they are doing is increasing the delta. Thanks again.

Not even true, I have a lifetime tracker with CBS, I haven't had to remortgage since moving house 14 years ago, even then I was porting over the same mortgage deal. If you are going to complain you need to get your facts straight.

BoutTime

silvercar said:

Thanks for the balanced opinion. Much appreciated. To be told by some on here I’m kicking myself for not taking out a tracker, or that my rates are half of what there’s are is irrelevant and inaccurate. I didn’t want a tracker as I didn’t want to have to remortgage every few years. And my rates are low because my LTV is also low. It’s the simple carrot on the stick to get you onboard at an attractive rate. My biggest issue is the likelihood that once the BOE rate goes back up they will push my rate up too just as before. So I’ll be paying more than I ever was. All they are doing is increasing the delta. Thanks again.

Not even true, I have a lifetime tracker with CBS, I haven't had to remortgage since moving house 14 years ago, even then I was porting over the same mortgage deal. If you are going to complain you need to get your facts straight.

What's not true? There were no lifetime trackers available at the time. I've had two lifetime trackers with two different lenders previously. I fully understand the difference. My point is I've been subjected to rate rises and the justification offered by CBS was the BOE rate rise. The rises were passed onto me directly. But the rate cuts were not. The title of the thread is how the OP is disgusted with CBS. And I am too because I believe their practices in this case to be unethical.
I'm not tied in and I have the option to transfer. I'm not bitter. But I am disgusted.

dunstonh

What's not true?

You said " didn’t want a tracker as I didn’t want to have to remortgage every few years." - that is not true.  You don't need to remortgage every few years with a tracker.

My point is I've been subjected to rate rises and the justification offered by CBS was the BOE rate rise. The rises were passed onto me directly. But the rate cuts were not. The title of the thread is how the OP is disgusted with CBS. And I am too because I believe their practices in this case to be unethical.

If you actually read the posts on this thread that explain it then you would see why.     I am not going to repeat it as you will probably ignore that as well.

I'm not bitter. But I am disgusted.

That is just daft.   If you buy an apple, are you disgusted that it doesn't taste like an orange?

BoutTime

dunstonh said:

What's not true?

You said " didn’t want a tracker as I didn’t want to have to remortgage every few years." - that is not true.  You don't need to remortgage every few years with a tracker.

My point is I've been subjected to rate rises and the justification offered by CBS was the BOE rate rise. The rises were passed onto me directly. But the rate cuts were not. The title of the thread is how the OP is disgusted with CBS. And I am too because I believe their practices in this case to be unethical.

If you actually read the posts on this thread that explain it then you would see why.     I am not going to repeat it as you will probably ignore that as well.

I'm not bitter. But I am disgusted.

That is just daft.   If you buy an apple, are you disgusted that it doesn't taste like an orange?

Are you just going to repeat yourself over and over? It was true at the time because at the time there were no lifetime trackers available. Only 2 year and 5 year trackers. What is it you cannot understand about that?

And what is it you cannot understand about me and others being disgusted that the CBS will tell us they have to increase our rate because of the BOE have increased there's, but then not apply the same reasoning when the BOE drop their rate?

csgohan4

BoutTime said:

dunstonh said:

What's not true?

You said " didn’t want a tracker as I didn’t want to have to remortgage every few years." - that is not true.  You don't need to remortgage every few years with a tracker.

My point is I've been subjected to rate rises and the justification offered by CBS was the BOE rate rise. The rises were passed onto me directly. But the rate cuts were not. The title of the thread is how the OP is disgusted with CBS. And I am too because I believe their practices in this case to be unethical.

If you actually read the posts on this thread that explain it then you would see why.     I am not going to repeat it as you will probably ignore that as well.

I'm not bitter. But I am disgusted.

That is just daft.   If you buy an apple, are you disgusted that it doesn't taste like an orange?

Are you just going to repeat yourself over and over? It was true at the time because at the time there were no lifetime trackers available. Only 2 year and 5 year trackers. What is it you cannot understand about that? 
 Your not a tracker, it's a Flexx non tracker mortgage

And what is it you cannot understand about me and others being disgusted that the CBS will tell us they have to increase our rate because of the BOE have increased there's, but then not apply the same reasoning when the BOE drop their rate?
Nothing written in your contract reductions will be in line with BOE, ergo it is not a tracker mortgage as you yourself pointed out and they are not obligated to pass on reductions in BOE to you

On what basis do you think you should have a tracker like mortgage on a flexx non tracker product? 

Your complaining because the interest rates are low and the bank are quite rightly not reducing your rates. If you wanted that product, get a tracker product, I have just switched to a tracker mortgage for that reason.

I'm afraid you only have yourself to blame for choosing a flexx non tracker mortgage if you wanted a mortgage to follow the BOE on reductions

Ultimately it isn't what strangers on a forum to decide what the outcome of your complaint is, please come back and let us know what the outcome, if you are successful and £5 to a charity of your choice

BoutTime

csgohan4 said:

BoutTime said:

dunstonh said:

What's not true?

You said " didn’t want a tracker as I didn’t want to have to remortgage every few years." - that is not true.  You don't need to remortgage every few years with a tracker.

My point is I've been subjected to rate rises and the justification offered by CBS was the BOE rate rise. The rises were passed onto me directly. But the rate cuts were not. The title of the thread is how the OP is disgusted with CBS. And I am too because I believe their practices in this case to be unethical.

If you actually read the posts on this thread that explain it then you would see why.     I am not going to repeat it as you will probably ignore that as well.

I'm not bitter. But I am disgusted.

That is just daft.   If you buy an apple, are you disgusted that it doesn't taste like an orange?

Are you just going to repeat yourself over and over? It was true at the time because at the time there were no lifetime trackers available. Only 2 year and 5 year trackers. What is it you cannot understand about that? 
 Your not a tracker, it's a Flexx non tracker mortgage

And what is it you cannot understand about me and others being disgusted that the CBS will tell us they have to increase our rate because of the BOE have increased there's, but then not apply the same reasoning when the BOE drop their rate?
Nothing written in your contract reductions will be in line with BOE, ergo it is not a tracker mortgage as you yourself pointed out and they are not obligated to pass on reductions in BOE to you

On what basis do you think you should have a tracker like mortgage on a flexx non tracker product? 

Your complaining because the interest rates are low and the bank are quite rightly not reducing your rates. If you wanted that product, get a tracker product, I have just switched to a tracker mortgage for that reason.

I'm afraid you only have yourself to blame for choosing a flexx non tracker mortgage if you wanted a mortgage to follow the BOE on reductions

Ultimately it isn't what strangers on a forum to decide what the outcome of your complaint is, please come back and let us know what the outcome, if you are successful and £5 to a charity of your choice

On the basis that it tracks when it goes up but not when it comes down. On the basis that even when it came back down to what it was when I signed up, I wasn't given the same original rate. On the basis that the CBS are increasing the delta each time the rate changes. On the basis that the BOE lowered the rates to help borrowers but this wasn't passed on to all borrowers.

Thrugelmir

BoutTime said:

dunstonh said:

What's not true?

You said " didn’t want a tracker as I didn’t want to have to remortgage every few years." - that is not true.  You don't need to remortgage every few years with a tracker.

My point is I've been subjected to rate rises and the justification offered by CBS was the BOE rate rise. The rises were passed onto me directly. But the rate cuts were not. The title of the thread is how the OP is disgusted with CBS. And I am too because I believe their practices in this case to be unethical.

If you actually read the posts on this thread that explain it then you would see why.     I am not going to repeat it as you will probably ignore that as well.

I'm not bitter. But I am disgusted.

That is just daft.   If you buy an apple, are you disgusted that it doesn't taste like an orange?

And what is it you cannot understand about me and others being disgusted that the CBS will tell us they have to increase our rate because of the BOE have increased there's, but then not apply the same reasoning when the BOE drop their rate?

As a member of the society attend the AGM and debate the issue with the Board of Directors. A more informed knowledge of the finances may help explain policy decisions. 

dunstonh

Are you just going to repeat yourself over and over? It was true at the time because at the time there were no lifetime trackers available. Only 2 year and 5 year trackers. What is it you cannot understand about that?

You didn't say that in your post.  

And what is it you cannot understand about me and others being disgusted that the CBS will tell us they have to increase our rate because of the BOE have increased there's, but then not apply the same reasoning when the BOE drop their rate?

Because you do not have a base rate tracker.   I will say it again, when the net interest margin falls below a certain point it becomes difficult for SVRs to fall below that point.  When the net interest margin is at or above the typical then the rate will typically move in line with increases/decreases in the base rate.