Tracker mortgage when Bank of England rate changes

Gogsaver2000

Hi, I have a YBS 2 year tracker mortgage. After the bank of england rate reduced in august i had a letter from them (haven’t kept this unfortunately), but what i wasn’t clear was that I had to phone them
up to get my payment recalculated, and because i didn’t do this until 3 months later, i have lost he amount that i would have saved. I appreciate that i should have studied the product better- leason learned, but i also don’t feel YBS have been as clear as they could have been- the helpline even has a recorded message before you get through to a handler that says rate changes will be amended as soon as possible (i need to phone back to get the exact wording).

anyone else had experience of this with YBS? Do other lenders require this as well? Seems strange to me given they know when rates go down- but could just be me!

any thoughts most welcome (aside from don’t open a policy you don’t fully understand as I have that memo now! TIA

ACG

If your mortgage is linked to the bank of england base rate your mortgage payments will be amended automatically, normally within 30 days. 

If your mortgage is linked to the banks/building society's base rate, then they may not necessairly pass on the bank of england base rate changes. But if they do, again it would be done automatically within 30 days. 

You should not need to do anything in either case. 

Gogsaver2000

ACG said:

If your mortgage is linked to the bank of england base rate your mortgage payments will be amended automatically, normally within 30 days. 

If your mortgage is linked to the banks/building society's base rate, then they may not necessairly pass on the bank of england base rate changes. But if they do, again it would be done automatically within 30 days. 

You should not need to do anything in either case. 

Thanks ACG- it sounds from what you are saying that it is usually automatic for moat lenders- this is what i had thought about YBS but not so it seems. I should have explained better in the post- they say they will recalculate automatically but only on 1st Jan each year- so if i did not contact them i would not get the lower rate from the August BOE reduction until then (and no back pay), and then again would not get any of the changes for 2025 (unless i ask) until 2026 (which is the end if the deal anyway). 

ACG

They might recalculate annually (im not sure, it sounds odd, but I will take your word for it). 
However, they HAVE to do it from the date they say they will do it as per the T&Cs. Its not a case of we will do in January but if you call us we will fo it in September as they would have the PRA coming down on them and opening themselves up to complaints.  

If that is what you have been told I am 99.9999% sure it is wrong. 

Maybe speak to someone else. If you used a broker, give them a call. Although I dont think Ybs are available through brokers only their subsidiary Accord. 

Typhoon2000

I believe the rate change is automatic but your payments are only recalculated anutomatically annually or biannually rather than monthly. So you should not be worse off by not calling them.

jimjames

Gogsaver2000 said:

ACG said:

If your mortgage is linked to the bank of england base rate your mortgage payments will be amended automatically, normally within 30 days. 

If your mortgage is linked to the banks/building society's base rate, then they may not necessairly pass on the bank of england base rate changes. But if they do, again it would be done automatically within 30 days. 

You should not need to do anything in either case. 

Thanks ACG- it sounds from what you are saying that it is usually automatic for moat lenders- this is what i had thought about YBS but not so it seems. I should have explained better in the post- they say they will recalculate automatically but only on 1st Jan each year- so if i did not contact them i would not get the lower rate from the August BOE reduction until then (and no back pay), and then again would not get any of the changes for 2025 (unless i ask) until 2026 (which is the end if the deal anyway). 

It sounds like you're mixing up a recalculation of the amount you pay per month and the application of the rate change onto your account. The two do not have to happen at the same time and it will help reduce your mortgage faster if the rate charged has gone down but your payment hasn't as you'll be overpaying by that amount until the next annual recalculation. Some people might need that money in their bank account each month but financially it's better if you've overpaid as the mortgage will be cleared sooner.

Gogsaver2000

jimjames said:

Gogsaver2000 said:

ACG said:

If your mortgage is linked to the bank of england base rate your mortgage payments will be amended automatically, normally within 30 days. 

If your mortgage is linked to the banks/building society's base rate, then they may not necessairly pass on the bank of england base rate changes. But if they do, again it would be done automatically within 30 days. 

You should not need to do anything in either case. 

Thanks ACG- it sounds from what you are saying that it is usually automatic for moat lenders- this is what i had thought about YBS but not so it seems. I should have explained better in the post- they say they will recalculate automatically but only on 1st Jan each year- so if i did not contact them i would not get the lower rate from the August BOE reduction until then (and no back pay), and then again would not get any of the changes for 2025 (unless i ask) until 2026 (which is the end if the deal anyway). 

It sounds like you're mixing up a recalculation of the amount you pay per month and the application of the rate change onto your account. The two do not have to happen at the same time and it will help reduce your mortgage faster if the rate charged has gone down but your payment hasn't as you'll be overpaying by that amount until the next annual recalculation. Some people might need that money in their bank account each month but financially it's better if you've overpaid as the mortgage will be cleared sooner.

Thanks to all responders, much appreciated- yes it does say recalculated annually. I think i might have been mixing these two things up.

Hoenir

Gogsaver2000 said:

jimjames said:

Gogsaver2000 said:

ACG said:

If your mortgage is linked to the bank of england base rate your mortgage payments will be amended automatically, normally within 30 days. 

If your mortgage is linked to the banks/building society's base rate, then they may not necessairly pass on the bank of england base rate changes. But if they do, again it would be done automatically within 30 days. 

You should not need to do anything in either case. 

Thanks ACG- it sounds from what you are saying that it is usually automatic for moat lenders- this is what i had thought about YBS but not so it seems. I should have explained better in the post- they say they will recalculate automatically but only on 1st Jan each year- so if i did not contact them i would not get the lower rate from the August BOE reduction until then (and no back pay), and then again would not get any of the changes for 2025 (unless i ask) until 2026 (which is the end if the deal anyway). 

It sounds like you're mixing up a recalculation of the amount you pay per month and the application of the rate change onto your account. The two do not have to happen at the same time and it will help reduce your mortgage faster if the rate charged has gone down but your payment hasn't as you'll be overpaying by that amount until the next annual recalculation. Some people might need that money in their bank account each month but financially it's better if you've overpaid as the mortgage will be cleared sooner.

Thanks to all responders, much appreciated- yes it does say recalculated annually. I think i might have been mixing these two things up.

As your payments will be maintained at a higher level for a few months (assuming no further change).  Then you'll be clearing more debt and paying less interest as a result.