Discount vs "tracker" deals

djy20

For all the chat about lack of control over rates with a discount mortgage, I would question the difference between some of the products above and my so-called "tracker" from Birmingham Midshires.

BM have taken almost exactly three months to pass on each rate change over the last two years, in breach of their condition to do so "on the 1st of the month following". The HSBC discount product still looks like the best out there, albeit the rate has risen to 5.19% or 1.31% above SVR. Early redemption costs only 1%.

I notice that HSBC religiously makes the Base Rate change to its SVR, so can we actually expect it to differ from a tracker?

Does anyone have experience of what looks like a distinction that often doesn't exist, despite lower rates for discount rate?

sarkin

I think you ned to check your paperwork on this one, some mortgages are linked direct to BOE rate in which case your rate will drop straight away. If your rate is linked to the lenders base rate, then it is upto the lender if they pass on the rate cut.

djy20

I have done - it is a tracker linked to BOE but they take 3 months to make the change.