Interest Rate change to be passed on???

Argyle_Stinge

Does anyone know which lenders are going to pass on or change their current mortgage rates in light of the BOE's decision last week? In paticular I am looking for information on A&L as I am due to change my product with them this month!

lisyloo

This is a good link to look at

http://www.thisismoney.co.uk/mortgages/mortgages/article.html?in_article_id=402769&in_page_id=58

I believe that A&L have already done it on new products.

http://www.alliance-leicester.co.uk/mortgages/index.asp?page=switcher-rates&buyertype=eremg&ct=home

So for example the 2 year base rate tracker is 4.34 and was 4.59.

meanmachine_2

That's a useful link lisyoo.

I now see how Northern Rock make their money - they have looser lending criteria, so cast their net wider and hope more people lapse onto their SVR, which seems to be the highest of all the main lenders!

It sounds high risk to me. Wouldn't want NR shares if there is a downturn or recession.

A number of my recent-buyer friends are with Northern Rock - they're indebted up to their eyeballs and are banking on rellies dying to free them from debt. Yikes!

Rikki

I have a tracker mortgage does this automatically drop with interest rate changes?

cattie

Rikki wrote:

I have a tracker mortgage does this automatically drop with interest rate changes?

Yes it should do, mine with the Halifax does.

Rikki

Is there away to check apart from a phone call or do they notify you in writing? This is the first change since I've had this tracker mortgage.

Milarky

Nationwide only shaved 0.1% off all mortgages and 0.25% off their tracking mortgage - Not good considering all they say about the benefit of mutuality [savings to be chopped later]

Interestingly I saw somewhere they justified not making an immediate announcement following the BOE rate cut on the grounds that any change made always takes effect at the 1st of the following month. [Nothing to do with looking over their shoulder and seeing what the crowd had done then?]

lisyloo

Is there away to check apart from a phone call or do they notify you in writing? This is the first change since I've had this tracker mortgage.

If you pay by direct debit then they are legally obliged to tell you about your payment change a few days before.

lush_walrus

Generally it takes a minimum of a month for interest rate changes to take effect on mortgages. Of course each lender is different, but rule of thumb is a month, in effect of rises or falls.