Today's interest rate drop news

[Guest rockpool crab]

Hi there,

 

I've just recently contacted my mortgage provider and moved over to an interest only mortgage at an interest rate of 5.99% on a tracker, base rate variable. I did this two days ago over the phone and the paperwork came through today. The guy who sold us the package has been on the phone to us saying ...don't bother with this paperwork as the "rate of interest has been withdrawn"..therefore we need the paperwork back. My hubbie has since phoned the guy who said..if you get it back to us by next Wednesday then it'll go through as you got in early enough.

 

Now..I have no idea what's happening but my gut instinct is that with the drop in interest rate that has just been announced that they may well be halting all variable rates and now only going to issue fixed rates as the rate might drop waaaaay low and that's not in their best interests.

 

BUT..I don't know this for a fact..and I'm sitting here with an envelope, ready to post back and now I'm a little scared. But surely they don't want the paperwork back to be "nice" and give us more money. I can't foresee the future..but reckon I should post it...eeeeeeeeeeeeeeee...lol...hate all this mortgage millarky!

 

Does anyone know what's goin on?

 

I reckon I'll phone the Barclay's mortgage guy up in the morning...but I have such a mistrust of all this stuff that I don't know if I can accept what he says really. Sob.

 

Hope someone can shed some light on it ...

 

Carol Ann

[HEAPS GOOD !!!]

The B of E dropped it 1.5% yesterday didnt they?

[Andrew from Vista Financial]

Huge rate cut eh.

 

Found this Carol Ann, might shed some light.

 

Sadly, several lenders have already announced that they've withdrawn their tracker mortgages for new borrowers. These lenders include:

• Skipton Building Society
  
• Woolwich
  
• Cheltenham & Gloucester
  
• Lloyds TSB
  
• The Mortgage Works (a subsidiary of Nationwide)
  
• Alliance & Leicester
  
• Nationwide
  
• Abbey
  

No doubt at least some of these lenders will return with new tracker deals next week. But it wouldn't surprise me if, on new trackers, the margin above the base rate increased from around 1.25% to 2.5% or more. This will effectively wipe out much of the base rate cut.

And there is even more bad news. Nationwide and Abbey have announced they are pulling all their tracker deals and do not plan to replace their tracker ranges at all. Other lenders may follow suit, meaning that, not only will trackers be more expensive, there will be fewer trackers available to choose from.

On the plus side, Lloyds TSB and Cheltenham & Gloucester have announced they will pass on the full 1.5% cut to borrowers on their Standard Variable Rate (SVR). Their SVR will be just 5% from December 1st.

We don't know whether other lenders will follow Lloyds TSB's lead. Don't assume that they'll all cut by the full 1.5%. In the current climate, Libor (the rate at which banks lend to each other) still has a big impact on mortgage rates and Libor rates haven't fallen by anything like 1.5% so far.

Rates for Fixed Rate Mortgages should fall in the next few weeks (and months), so it's probably best to hold off on taking up a fixed-rate deal unless you absolutely have to.

 

 

p.s, these are not my comments!

 

Andy

[Guest rockpool crab]

Huge rate cut eh.

 

Found this Carol Ann, might shed some light.

 

 

Sadly, several lenders have already announced that they've withdrawn their tracker mortgages for new borrowers. These lenders include:

• Skipton Building Society
  
• Woolwich
  
• Cheltenham & Gloucester
  
• Lloyds TSB
  
• The Mortgage Works (a subsidiary of Nationwide)
  
• Alliance & Leicester
  
• Nationwide
  
• Abbey
  

No doubt at least some of these lenders will return with new tracker deals next week. But it wouldn't surprise me if, on new trackers, the margin above the base rate increased from around 1.25% to 2.5% or more. This will effectively wipe out much of the base rate cut.

And there is even more bad news. Nationwide and Abbey have announced they are pulling all their tracker deals and do not plan to replace their tracker ranges at all. Other lenders may follow suit, meaning that, not only will trackers be more expensive, there will be fewer trackers available to choose from.

On the plus side, Lloyds TSB and Cheltenham & Gloucester have announced they will pass on the full 1.5% cut to borrowers on their Standard Variable Rate (SVR). Their SVR will be just 5% from December 1st.

We don't know whether other lenders will follow Lloyds TSB's lead. Don't assume that they'll all cut by the full 1.5%. In the current climate, Libor (the rate at which banks lend to each other) still has a big impact on mortgage rates and Libor rates haven't fallen by anything like 1.5% so far.

Rates for Fixed Rate Mortgages should fall in the next few weeks (and months), so it's probably best to hold off on taking up a fixed-rate deal unless you absolutely have to.

 

 

p.s, these are not my comments!

 

Andy

 

Hiya...thanks for the info Andy.

 

I ended up on a tracker though Barclay's (Woolwich)...but they still haven't dropped the rate :-( They did withdraw the trackers though and I snuck in just in time, but still haven't seen the benefits yet. Hopefully they'll be pressured into dropping the rate.

 

Cheers

 

Carol Ann

[Guest graandjac]

:)With the banks getting closer to losing the bank charges case, after the latest roung went to the consumer, which is going to cost them millions (£3,500 to me )i cant see them giving away or passing on to much help to quick.

[Guest rockpool crab]

:)With the banks getting closer to losing the bank charges case, after the latest roung went to the consumer, which is going to cost them millions (£3,500 to me )i cant see them giving away or passing on to much help to quick.

 

 

Nice one..for you I mean.

 

Ach..well see what happens....what will be will be and all that jazz. As long as the rate doesn't go up to something stupid then I can live with what it's at for now.

 

I'd really prefer the house sold mind you.

 

I'm thinking of going into the bank here (UK) and asking for a letter saying I was a good customer with regards to credit rating. Anyone else done this? I also thought getting an "equifax" report..I think you can pay for those, but couldn't banks in Australia check equifax too? Ach....what the heck..I'll just get it and it's something else to show them to hopefully sweet talk them into a mortgage at some point...that and having jobs!

 

Cheers.

 

Carol Ann