How many lenders are passing on the Bank of England rate reduction?

Destiny_S

I got a letter yesterday from my Bank, saying that it wasn't going to be passing it on. (Royal Bank of Scotland).

Are they out on their own with this, or are other lenders the same?

lisyloo

Are they out on their own with this, or are other lenders the same?

There is a global banking crisis going on.
In general bank lending rates have been going up whilst the Bank of England rate has been going down.

A lot of economists are predicting base rates to come down (some as low as 3.5%) so keep your fingers crossed that they will be passed on in future.

If you don't want to rely on finger crossing then you should consider a fixed rate or one directly lnked to the Bank of England base rate and not one linked to a bank rate.

Dan_Collins_2

Most are and will not. They are filling the reserves up and until they have anough cash in the bank so to speak, they will not lend anymore than they have to nor decrease rates by any large margin.

I see BOE going up soon, inflation is going up up up! Just look at your cost of living, I wrote mine down as I am weathering the storm being a broker, I cant believe how much it costs before you start adding good stuff like food ;-)

michaels

Seems one account is not and hsbc have made no announcement. However when the cut was announced several lenders did say they will pass on the reduction: http://news.bbc.co.uk/1/hi/business/7340142.stm

minimike2

Dan_Collins wrote: »

I wrote mine down as I am weathering the storm being a broker, I cant believe how much it costs before you start adding good stuff like food ;-)

What is this "food" you speak of?

space_rider

I`m with Abbey on a base rate tracker and it hasn`t gone down.

herbiesjp

Your Abbey deal should go down from this month I believe

Dithering_Dad

My Standard Life mortgage hasn't followed any of the rate drops, in fact it's gone up by something like 0.1%.

I've reduced my mortage by 34k though this year and so gave myself a rate drop. That's two fingers to Standard Life and all of the nay-sayers who say it's a waste of money to reduce mortgage debt.

Graeme7777

Hi,

I probably misunderstand the issue but why do people expect their mortgage rates to move with the BoE rate (unless explicitly a tracker product)? I thought that the lending banks tend to price their loan products using rates prevailing in wholesale money markets (e.g. interbank market)

Hope someone can clear this up for me!

Cheers

dunstonh

Dithering_Dad wrote: »

My Standard Life mortgage hasn't followed any of the rate drops, in fact it's gone up by something like 0.1%.

I've reduced my mortage by 34k though this year and so gave myself a rate drop. That's two fingers to Standard Life and all of the nay-sayers who say it's a waste of money to reduce mortgage debt.

Standard Life, like many mortgages, doesnt track the BoE interest rate but tracks LIBOR.

michaels

HSBC have now cut their svr - must have been shamed into it by the 'contact us' email I sent them on Wednesday