Absolutely Disgusted with the Coventry

BoutTime

dunstonh said:

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.

The same mortgage at two different dates in the past 3 and a bit years:

Base Rate 0.25%, Mortgage Rate 1.35% (1.10% above BOE Base rate)

BOE Base Rate 0.25%, Mortgage Rate 1.85% (1.60% above BOE Base Rate)

csgohan4

BoutTime said:

dunstonh said:

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.

The same mortgage at two different dates in the past 3 and a bit years:

Base Rate 0.25%, Mortgage Rate 1.35% (1.10% above BOE Base rate)

BOE Base Rate 0.25%, Mortgage Rate 1.85% (1.60% above BOE Base Rate)

And yet irrelevant as you do not have a tracker mortgage. OP it's evident despite several people giving you  the same message your not able or perhaps willing to see the points, that it is very much product specific and written in your T+Cs. 

As we have said, if you feel you have a case, make a complaint and then take it to the FCA, the same goes for the OP. I highly doubt you will have a case, but prove us wrong, £5 to a charity of your choice if FCA rules in your favor

Glover1862

dunstonh said:

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.

Their rates have been lower so I don’t buy your argument that they’ve reached a point where they can’t go any lower, if that was the case then they wouldn’t have reduced other managed rates. Also, they’ve had shed lots of cheap government funds, surely that should increase their margin. As has been mentioned, to justify the increase they blame the BOE, when they are reduced, it’s nothing to do with that Gov. 

Im not questioning the T&C, just for a supposedly ethical lender, was their decision fair and in the spirit of the BOE cut, considering the cheap funding all the lenders had and will continue to take, with the BOE being  their lender of last resort and not letting them fail.

when I took this, no BOE trackers for life where available.

silvercar

"when I took this, no BOE trackers for life where available."
You say no BoE trackers were available, so you knew you weren't choosing a BoE tracker. Yet now you are complaining that your mortgage isn't tracking the BoE rate.

BoutTime

silvercar said:

"when I took this, no BOE trackers for life where available."
You say no BoE trackers were available, so you knew you weren't choosing a BoE tracker. Yet now you are complaining that your mortgage isn't tracking the BoE rate.

We are going round in circles here so this will be my last post. Yes I knew it wasn’t a tracker. In fact I’ve looked over my emails from when we moved house and I specifically raised the issue with my mortgage advisor. I pointed out that there would be nothing to stop the CBS from raising the rate whenever they liked. He told me whilst this was true, historically they had never done this and they have always followed the BOE.
Yes I agree there is nothing in the T&Cs that requires them to track the BOE. My point is I have been subjected to a number of rises and each time I was told by the CBS it was because the BOE raised their rate. Yet now the BOE lower their rate it’s not deemed as necessary to lower their own. The pattern is the CBS like to pass on increases but not reductions and for me this is unethical. Their own SVR was reduced yet there is no legal requirement for them to do that either.
My view is that having attracted customers that qualify with a very competitive rate, they now seek to use BOE rate changes to alter the product in their favour. It seems there are those on this forum that are a little bitter about the fact my rate is half of their own. It’s irrelevant and apples vs oranges. I qualified for this product. Maybe they didn’t.
The rate I pay is still favourable compared to the market and I will not bite my nose off to spite my face. But next year things may be different as my LTV will be around 30%.
I might also add that this is the money saving expert forum designed to help people save money and stay on the right side of financial products. All because my rate is low doesn’t mean I don’t want it lower. And when the BOE raise there rate again is suspect the CBS will send me a letter explaining that they are passing the increase on to me.
And for the record as possibly you haven’t even read my posts.....I am not complainIn my mortgage doesn’t  track the BOE rate. I am complaining that it tracks the BOE when there is an increase, but not when there is a decrease. This is unethical in my opinion.

dunstonh

Their rates have been lower so I don’t buy your argument that they’ve reached a point where they can’t go any lower

Yet the base rate has never been lower.    So, if what you are saying is true, it confirms that they are sourcing funds by means that are not linked to the BBR.  However, we knew that anyway as their public data conforms that they get around 72% of their funding from members with the rest from wholesale funding and reserves.  Their costs to mean assets ratio runs at around 0.46% p.a   And many of their savers are on fixed term deposits that do not reduce in interest until the expiry date

And for BTL mortgages, the risks of default have risen.  So, there will be some risk margin there as well.

Also, they’ve had shed lots of cheap government funds

When?

Glover1862

dunstonh said:

Their rates have been lower so I don’t buy your argument that they’ve reached a point where they can’t go any lower

Yet the base rate has never been lower.    So, if what you are saying is true, it confirms that they are sourcing funds by means that are not linked to the BBR.  However, we knew that anyway as their public data conforms that they get around 72% of their funding from members with the rest from wholesale funding and reserves.  Their costs to mean assets ratio runs at around 0.46% p.a   And many of their savers are on fixed term deposits that do not reduce in interest until the expiry date

And for BTL mortgages, the risks of default have risen.  So, there will be some risk margin there as well.

Also, they’ve had shed lots of cheap government funds

When?

https://www.coventrybuildingsociety.co.uk/content/dam/cbs/consumer/pdf/our-performance/treasury-services/covered-bonds/investor_presentations/investor_presentations_2018/Covered_Bond_Investors_Presentation_November_2018.pdf
"The Society has drawn down from the TFS scheme £4.25bn as at February 2018, using the funds to continuing to offer competitive member mortgages"
46% of the wholesale funding came from TFS £4.25 billion, as said all I'm asking for an ethical lender have they acted in the spirit of the BOE cut considering they have drawn funds from them (and will no doubt continue to feed off BOE with TFS MK2) BOE also their to save them. 

No is saying we didn't read the T&C's, it just the product tracks the BOE when rates increase and fails to do so when they reduce, just a question of fairness.   

Not sure what this has to do with anything "savers are on fixed term deposits that do not reduce in interest until the expiry date"

That is directly balanced by Mortgage holders on fixed rates 

Glover1862

silvercar said:

"when I took this, no BOE trackers for life where available."
You say no BoE trackers were available, so you knew you weren't choosing a BoE tracker. Yet now you are complaining that your mortgage isn't tracking the BoE rate.

Keep up, we've never said we didn't know, this is just going around in circles!! 

Glover1862

Glover1862 said:

I have this product, it’s a residential offset flexx for the term. I knew it wasn’t linked to the boe rate, but historically it always tracked it and like the OP said they did pass on the rises rapidly. The SVR and privilege rate are also not officially tied  to boe either but they had the reduction, a little unfair for a “ethical” lender as they portray  themselves.

im thinking of doing a product transfer or remortgage as there is no ERC, the main reason being I’m not hanging around only to see the increases. I was told a lot of CBS book was on this product and other flexx products with no erc so they could lose a lot of customers, perhaps they want that.

As above

Thrugelmir

BTL is commercial unregulated lending. Not the same as regulated consumer lending.  No amount of complaining is going to have any impact.