BoE 0.1% base rate, why aren't mortgage providers passing this on to eligible customers?

edited 31 March 2020 at 1:44PM in Mortgages & Endowments
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  • WillimS2020WillimS2020 Forumite
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    zagfles said:
    zagfles said:
    So what do the terms of your tracker say? Have you read them? They'll likely say something about passing on changes to the base rate within a certain period of time, it's unlikley to be immediate.
    Now you mention it, I have the previous letter from my mortgage lender when the BoE rate was risen from 0.5% to 0.75% with 'immediate' effect, I now have in my hand a letter dated 27/03, stating the 'new' lower rate  interest rate 0.01% will apply from 01/05, next month a 'full' 4 weeks interest in their favour. 

    On that basis my mortgage provider stipulates the interest rate on the account is 2.0000%, I have worked that out to be on the base rate of 0.5%, so clearly they are still not passing on the 0.1%, they obviously think that Jo Public can,t work out the BoE base rates, and how it is worked out. 

    Once again, what do the terms say? There might be a floor, there might be a delay allowed etc etc.
    Put the boot on the other foot, once my letter of 0.5% rises to 0.75%, how do you think my mortgage company would react if I said ... hang about... let me look at the terms what do they say, there might be a delay that you can't rise them that quickly, I will wait a full 4 weeks and after that you can raise my interest rates.?

    LOL ^^ do you know how the mortgage company would react to that line of logic?   It only works one way, mortgage companies 'believe' they can do that to customers, but they don't believe customers can use the same tact, sorry but contracts work both ways, these mortgage companies get away with it because they believe no one understands the complex mechanisms  of mortgage interest rates. 

    Hard luck, because some of us do. 
  • zagfleszagfles Forumite
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    zagfles said:
    zagfles said:
    So what do the terms of your tracker say? Have you read them? They'll likely say something about passing on changes to the base rate within a certain period of time, it's unlikley to be immediate.
    Now you mention it, I have the previous letter from my mortgage lender when the BoE rate was risen from 0.5% to 0.75% with 'immediate' effect, I now have in my hand a letter dated 27/03, stating the 'new' lower rate  interest rate 0.01% will apply from 01/05, next month a 'full' 4 weeks interest in their favour. 

    On that basis my mortgage provider stipulates the interest rate on the account is 2.0000%, I have worked that out to be on the base rate of 0.5%, so clearly they are still not passing on the 0.1%, they obviously think that Jo Public can,t work out the BoE base rates, and how it is worked out. 

    Once again, what do the terms say? There might be a floor, there might be a delay allowed etc etc.
    Put the boot on the other foot, once my letter of 0.5% rises to 0.75%, how do you think my mortgage company would react if I said ... hang about... let me look at the terms what do they say, there might be a delay that you can't rise them that quickly, I will wait a full 4 weeks and after that you can raise my interest rates.?

    LOL ^^ do you know how the mortgage company would react to that line of logic?   It only works one way, mortgage companies 'believe' they can do that to customers, but they don't believe customers can use the same tact, sorry but contracts work both ways, these mortgage companies get away with it because they believe no one understands the complex mechanisms  of mortgage interest rates. 

    Hard luck, because some of us do. 

    So you've not read the terms yet then? You know, what you'll have agreed to when you signed up for this mortgage?
  • edited 31 March 2020 at 4:19PM
    csgohan4csgohan4 Forumite
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    edited 31 March 2020 at 4:19PM
    All this for £18 for a single month allegedly... As per last poster, what are YOUR Terms and conditions and update us on what the lender says to your complaint. Millions of people have been in your position and nothing has come of it, no front line news for interest rate scandals for what your describing.


    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • edited 31 March 2020 at 4:23PM
    WillimS2020WillimS2020 Forumite
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    edited 31 March 2020 at 4:23PM
    csgohan4 said:
    All this for £18 for a single month allegedly... As per last poster, what are YOUR Terms and conditions and update us on what the lender says to your complaint. Millions of people have been in your position and nothing has come of it, no front line news for interest rate scandals for what your describing.

    OP you either have too much time on your hands or just trolling, my money is on both.
    When posters are oblivious to a subject they  accuse other posters of 'trolling', sorry this is used time and time again when other posters get stuck so they call other posters 'trolls', no trolling about it, if it doesn't effect you don't bother replying, you cant comment on a subject that doesn't directly effect YOU, so to call others 'trolls' because of your own ignorance on the subject is just sheer and utter arrogance, and lack of education. 
  • WillimS2020WillimS2020 Forumite
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    csgohan4 said:
    All this for £18 for a single month allegedly... As per last poster, what are YOUR Terms and conditions and update us on what the lender says to your complaint. Millions of people have been in your position and nothing has come of it, no front line news for interest rate scandals for what your describing.

    OP you either have too much time on your hands or just trolling, my money is on both.
    When posters are oblivious to a subject they  accuse other posters of 'trolling', sorry this is used time and time again when other posters get stuck so they call other posters 'trolls', no trolling about it, if it doesn't effect you don't bother replying, you cant comment on a subject that doesn't directly effect YOU, so to call others 'trolls' because of your own ignorance on the subject is just sheer and utter arrogance, and lack of education. 
    I know cs has edited their post, but going back to the unedited bit, how can I 'troll' my own thread?
  • edited 31 March 2020 at 4:32PM
    csgohan4csgohan4 Forumite
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    edited 31 March 2020 at 4:32PM
    csgohan4 said:
    All this for £18 for a single month allegedly... As per last poster, what are YOUR Terms and conditions and update us on what the lender says to your complaint. Millions of people have been in your position and nothing has come of it, no front line news for interest rate scandals for what your describing.

    OP you either have too much time on your hands or just trolling, my money is on both.
    When posters are oblivious to a subject they  accuse other posters of 'trolling', sorry this is used time and time again when other posters get stuck so they call other posters 'trolls', no trolling about it, if it doesn't effect you don't bother replying, you cant comment on a subject that doesn't directly effect YOU, so to call others 'trolls' because of your own ignorance on the subject is just sheer and utter arrogance, and lack of education. 
    Just tried to be nice, since you put up my unedited post, I have nothing else to add, than good luck in your endeavors with the lender and if you don't like what you don't want to hear, there are other forums as well.  May I suggest one that begins with Mum and ends in net

    One more thing to add:


    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • WillimS2020WillimS2020 Forumite
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    csgohan4 said:
    csgohan4 said:
    All this for £18 for a single month allegedly... As per last poster, what are YOUR Terms and conditions and update us on what the lender says to your complaint. Millions of people have been in your position and nothing has come of it, no front line news for interest rate scandals for what your describing.

    OP you either have too much time on your hands or just trolling, my money is on both.
    When posters are oblivious to a subject they  accuse other posters of 'trolling', sorry this is used time and time again when other posters get stuck so they call other posters 'trolls', no trolling about it, if it doesn't effect you don't bother replying, you cant comment on a subject that doesn't directly effect YOU, so to call others 'trolls' because of your own ignorance on the subject is just sheer and utter arrogance, and lack of education. 
    Just tried to be nice, since you put up my unedited post, I have nothing else to add, than good luck in your endeavors with the lender and if you don't like what you don't want to hear, there are other forums as well.  May I suggest one that begins with Mum and ends in net

    One more thing to add:


    cheers I have more to pop than corn, but thanks for your goodwill gesture, 'goodwill gesture', now I wonder if that will form part of my complaints response? ... here's how it goes 

    Dear Mr Blah Blah

    I am sure you will be disappointed, but as a 'goodwill gesture' .... blah blah 

    ^^ lol I am sure you all know how it pans out :D
  • SplatfootSplatfoot Forumite
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    You just need to check whether yours has a minimum floor. Most do. It will be a weight off your mind to know this. 
  • WillimS2020WillimS2020 Forumite
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    Splatfoot said:
    You just need to check whether yours has a minimum floor. Most do. It will be a weight off your mind to know this. 
    A 'tracker mortgage' is not to be confused with a 'variable mortgage' some use similar methods of calculation, a tracker mortgage years ago was not a good mortgage option, as they were mainly used for SCM (Self Certificate Mortgages), which we now know caused a lot of the financial crash in 2008.   They were sold as 'high risk' at the time because they tracked the BoE interest rates, which were generally not good.

    However, the tide has turned and tracker mortgages are now 'good', as the BoE base rate is historically so low, so these mortgage providers who tried to 'dupe' and 'con' people with these 'high risk'  tracker mortgages now want out of them, as they are proving to be more beneficial  to the borrower than the lender.    These BoE tracker mortgages will be like gold dust now, so the mortgage lenders want out of them, LOL well sorry it don't work that way.


  • edited 31 March 2020 at 11:11PM
    fewcloudyfewcloudy Forumite
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    edited 31 March 2020 at 11:11PM
    Define "years ago" please, as I took one out in 2008?  It certainly wasn't  "not a good option"  then; it was an alternative to buying a fixed rate mortgage.
    As it happens, it has turned out to be the best financial product I ever bought, by a country mile.
    And I was employed not self-employed, so no SCM for me.
    When the rates dropped almost month by month over 2009/10, the cut was passed onto me the 1st of the following month, without fail.  It is in the terms of the mortgage, which unlike you, I seem to have to hand.
    When the rates went up a tiny little bit in recent years, the increase was applied in just the same way, on the 1st of the following month.
    Feb 2008, 20year lifetime tracker with "Sproggit and Sylvester"... 0.14% + base for 2 years, then 0.99% + base for life of mortgage...base was 5.5% in 2008...but not for long, and credit to my mortgage broker
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