Ignoring the chancellor ....

wymondham

As Northern Rock is still ignoring it's boss and not reduced rates, and I've just been told via letter that One Account are also keeping rates on hold how many other lenders will be passing on the reduction I wonder??

thecasementkid

wymondham wrote: »

As Northern Rock is still ignoring it's boss and not reduced rates, and I've just been told via letter that One Account are also keeping rates on hold how many other lenders will be passing on the reduction I wonder??

I received the same letter from One Account today. I thought the idea of a this mortgage was that it was compelled to follow the BOE rate. That's why I took it out???

wymondham

thecasementkid wrote: »

I received the same letter from One Account today. I thought the idea of a this mortgage was that it was compelled to follow the BOE rate. That's why I took it out???

They don't have to if you read the small print, but this is the first time I can recall when they have not ... will this spread do you think??!! Looks like the banks take as much notice of the Government as the public do!!

dunstonh

Many mortgages track LIBOR rather than the BoE rate and the SVR doesnt have to track anything.

BACKFRMTHEEDGE

I read in the Sunday Times (7th April I think) that building socities & banks were going to target offsets with higher interest rates. The journalist never named his/her source I'm afraid.:o but this seems to suggest that they were well informed.

subjecttocontract

BACKFRMTHEEDGE wrote: »

I read in the Sunday Times (7th April I think) that building socities & banks were going to target offsets with higher interest rates. The journalist never named his/her source I'm afraid.:o but this seems to suggest that they were well informed.

I guess it depends on the size of your loan as to wether its good or bad. If offset interest rises so does the tax free interest you get on paying your savings into the account.

silvercar

BACKFRMTHEEDGE wrote: »

I read in the Sunday Times (7th April I think) that building socities & banks were going to target offsets with higher interest rates. The journalist never named his/her source I'm afraid.:o but this seems to suggest that they were well informed.

Just like all other types of mortgages, offsets can be fixed, trackers, BoE base rate trackers, variables, SVR.....

Dan_Collins_2

SVR's are not normally linked with the BOE rates but more the LIBOR. Banks dont trust each other, stories of banks in trouble are flying around and they need to bank cash fast. Keeping the SVR up will make some money for them.

Regarding the one account, check your T&C, you may find it does not track anything!

Anne3333

Many lenders are not reducing their rates, that is because they are not using the Base Rate but LIBOR (The London Interbank Offered rate) the rate at which they lend between themselves. Confidence is low and banks are stockpiling to ensure they don't face the same difficulties as Northern Rock. Dont count on any base rate drops reducing your mortgage!

poppy10_2

LIBOR is almost 1% higher than the BoE base rate at the moment - the banks have no real scope to cut rates.