Passing on of interest rate savings on tracker mortgages

deanet

Dear all,

Have a tracker mortgage with IF and i have just been going through my mortgage payment history of last couple of years and have noticed that every time the Bank Of Eng base rate went up my mortgage went up from the 1st of the next month as i expected it would. But on the last 2 occasions the base rate went down it has taken them to the 2nd month to pass on the saving(ie Dec 6th 2007 cut of .25% was'nt passed on til Feb 08 rather than jan). Has anyone else experienced this or is it as i suspect the norm & is in your terms & cons & you have to lump it.

Many Thanks

barrymoney

my halifax tracker says something like 'the rate will be adjusted within 30 days of a change in the BOE base rate', which I think gives them the chance to do exactly what you suggested, unfortunately, e.g. to effectively be a month behind a rate cut (I recall being told this when arranging the tracker). It didn't occur to me they'd move quicker if the rates go up - thinking about it now it wouldn't surprise me... (!) but I don't know for sure.

maninthestreet

I have Halifax tracker, and the the last 2 base rate cuts were actioned such that my mortgage payment was reduced as of the 1st of the month immediately following the base rate cut.

Trying_to_be_good

My Woolwich tracker is also changed on the first of the month following a rate change.

barrymoney

hmm, thats curious, I was definitely told it would be the month after that. maybe I totally misunderstood it! We'll see what happens in reality (if the BoE actually make a cut soon...).

stoke_bishop

deanet wrote: »

Dear all,

Have a tracker mortgage with IF and i have just been going through my mortgage payment history of last couple of years and have noticed that every time the Bank Of Eng base rate went up my mortgage went up from the 1st of the next month as i expected it would. But on the last 2 occasions the base rate went down it has taken them to the 2nd month to pass on the saving(ie Dec 6th 2007 cut of .25% was'nt passed on til Feb 08 rather than jan). Has anyone else experienced this or is it as i suspect the norm & is in your terms & cons & you have to lump it.

Many Thanks

I'm on IF currently. Yes the same thing. They have a "window". Of course they're gonna push any decreases to the back of that window,

marybishop

I'm with Bank of Scotland and had exactly this question with conflicting answers from their staff. I said I was going to write a letter of complaint because I felt one member of staff's attitude was very rude when he said that I was wrong to state that in recent times the rate had changed within a week of the BofE putting their rate up but when it went down they weren't so quick to change it. He said the rate change either way was effective in the month following the BofE rate change but I had correspondence to prove otherwise. He still insisted I was wrong! Two further calls said the opposite and funnily enough within a couple of days I had a letter to say the rate would go down from the next mortgage payment!

owitemisermusa

HSBC seem to change their rates immediately.

deanet

Thanks for all the replys, will ring them tomorrow to see what different story i will probally get from them.

minimike2

Im seeing a few people recently who are with IF reporting the same thing...