Interest rate cuts - was your passed on?

[kt.]

I have a mortgage with Standard Life Bank on a variable rate.  From the total 2.5% cut in interest rates this past two months, they have said they will only be passing on 0.75%.  The total cut in my mortgage payments should of been a reduction of £122 but I am only getting a reduction of £33. >:( >:(

I am fortunate that I am able to switch lenders.  When I get back home next week I am switching lender and they can go and whistle dixie >:( >:(

Anybody else been stiffed by their current lender?

[kt.]

[OllieC]

Yes, I'm fine, but I would expect to be on a tracker mortgage... Pay rate of 2% for me, ooh yeah!

I would say, at the risk of sounding like I'm defending the banks, that they do not borrow money at the Bank of England rate. On the surface it looks very unfair not to have the rate passed on, but it is a lot more messy than it appears... and making them pass on cuts will actually make the mortgage market worse for a longer time. It will also push house prices down further.

The problem now is supply/demand... there is much more demand than supply & the banks have us over a barrel, none of them really want to increase their loan book, and none of them want to be the cheapest.

Of the last 20 or so people I've tried to help with their mortgage (me being a mortgage broker), I've been able to help 2... A year ago it would have been between 15 & 20. Partly this is because there are some okay direct only deals which brokers can't access, and partly it's because banks are being so fussy.

[saddad]

I'm with Birmingham Midshires (part of the Halifax etc group). I'm on a tracker started on 5.8 and will be down to 3.3 but not until 1st March will the lowest payments catch up.... why it takes three months is beyond me but it will be a nice present. Bet it doesn't take them 3 months to catch up when rates start to rise again!  ::)

[Froglegs]

Bet it doesn't take them 3 months to catch up when rates start to rise again!  ::)

Funny i was thinking just the same >:(

[rosebud]

Our fixed rate runs out in FEB, any ideas Ollie, we are with the Halifax.

[flowerofshona2007]

We are with Alliance and leic and in all the cuts we have had a reducion of a whopping 1/4 % !!!!! they where fast enough to put it up  >:(

[OllieC]

HSBC have (or had) a tracker deal that is (or was) 1.5% less than any broker can get, worth seeing if you're eligible if tracking's what you want... If you want fixed then Halifax's own retention products are okay, otherwise Abbey are pretty hot for remortgage deals... C&G might well improve next week & Nationwide are usually there or thereabouts anyway.

At the risk of touting for business, if anyone wants to pm me I'd be happy to see if I can help (I'm fully independent & wouldn't charge a fee for anyone here). I'd be happy to donate something to A4A for any business I do. And naturally everything is entirely confidential.

[rosebud]

Thanks Ollie, i shall be in touch in the New Year.

[caroline7758]

We have a fixed deal with Nationwide at 4.79% until 2011. I emailed them about 2 weeks ago asking what the redempttion charges would be, to see if it's worth switching,and surprise, surprise, they haven't replied. We also have a btl mortgage with HSBC which is a tracker, but we haven't heard anything from them about any cut. >:(

London & Country have a calculator on their site where if you know what your redemption charges would be it will work out at what interets rate it would be worth switching. Trouble is there are so few trackers now that you may not be able to anyway.

[Maidenheadtaff]

Don't know oif this has been said already but i heard on radio 5 yesterday that

The govt loaned to the banks at 12% and expect the banks to loan at 2%

When you realise that you kinda understand why the banks are relunctant to laoan at a low rate

[SamLouise]

Yeah, passed on alright - to our savings!  >:(

[Borlotti]

We paid off our mortgage in June this year.  Should I be pleased or not.  Didn't get the pay off promised by the endowment, but who cares.  Should be better off but what with the heating bills etc. but at least we won't get repossesed or whatever.