BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan, Feb & Mar)
- Knulpuk
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
You know the markets are a bit screwed when you are slightly disappointed with 0.5% - still that'll be a 1.78% mortgage.
Shame no shops will exist to spend the extra cash in.
Shame no shops will exist to spend the extra cash in.
- jacksosi
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Re: BOE cuts 1.5 %
I sent htis letter to N'Rock a few days ago ...well nothing ventured...jacksosi wrote:I am .
I am 6 years into a 7 year capped mortgage at 5.19% which I took out to deal with the chance that rates would fall.
As I am with N/rock , their SVR when rates were 4.5% was 7.35%, so even if they pass the full cut on, their SVR will still be 5.85%, so no reduction for me.
This is almost mis-selling as when I took this mortgage out their SVR would have been much closer to base rates, and so a fall could have produced an upside. If their spread had been this large at the time I would have taken a cheaper fixed rate product. So really I have an almost useless cap. I am gonna sue .
Dear Sir/Madam,
I am writing to complain about the mortgage product that I have with yourselves.
I am 6 years into a 7 year Cap @ 5.19% .
I could have taken your 7 year fixed @ 4.99% at the same time but wanted exposure to any rate falls.
Obviously BOE rates have dived, but you now have a large spread between BOE (2%) and your SVR (5.34)% of 3.34%
When I took the deal the rates were 4% and 5.85%, ie a spread of 1.85%.
It seems you have moved the goalposts, and the 0.2% I have paid as a premium over fixed for 6 years is now not reaping the benefits
that it should.
If the SVR is not ever going to fall below the Capped rate, even with the lowest BOE rates for many years, then I would presume
that I would be within my rights to expect the 0.2% premium back that I paid for the Cap if I am not getting the benefits?
I have paid extra for the capped product but I have actually received the fixed product, which is mis-selling.
This refund would equate to: 7 years x 200,000k x 0.2% = £2,800
I await your response.
- Knulpuk
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
Interesting article on the thousands of Base rate -1.01% mortgages issued by C&G.
There is nothing in the documentation to say that if rates fell to 1% that CG would avoid having to actually pay out 0.01% to the borrowers - instead they are simply looking to rely on the fact that the wording of the agreements only make reference to payments made by the borrowers and not payments by the lenders.
Be interesting if that was challenged!
Imagine being paid to borrow.
There is nothing in the documentation to say that if rates fell to 1% that CG would avoid having to actually pay out 0.01% to the borrowers - instead they are simply looking to rely on the fact that the wording of the agreements only make reference to payments made by the borrowers and not payments by the lenders.
Be interesting if that was challenged!
Imagine being paid to borrow.
- OscarBravo
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
You lucky boy, mine will only go down to 1.85%Knulpuk wrote:You know the markets are a bit screwed when you are slightly disappointed with 0.5% - still that'll be a 1.78% mortgage.
Shame no shops will exist to spend the extra cash in.
-
- FISO Jedi Knight
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Re: BOE cuts 1.5 %
i'M ON A VARIABLE WITH HALIFAX WHO AINT PASSING IT ON AGAIN!! chap!!!jacksosi wrote:I sent htis letter to N'Rock a few days ago ...well nothing ventured...jacksosi wrote:I am .
I am 6 years into a 7 year capped mortgage at 5.19% which I took out to deal with the chance that rates would fall.
As I am with N/rock , their SVR when rates were 4.5% was 7.35%, so even if they pass the full cut on, their SVR will still be 5.85%, so no reduction for me.
This is almost mis-selling as when I took this mortgage out their SVR would have been much closer to base rates, and so a fall could have produced an upside. If their spread had been this large at the time I would have taken a cheaper fixed rate product. So really I have an almost useless cap. I am gonna sue .
Dear Sir/Madam,
I am writing to complain about the mortgage product that I have with yourselves.
I am 6 years into a 7 year Cap @ 5.19% .
I could have taken your 7 year fixed @ 4.99% at the same time but wanted exposure to any rate falls.
Obviously BOE rates have dived, but you now have a large spread between BOE (2%) and your SVR (5.34)% of 3.34%
When I took the deal the rates were 4% and 5.85%, ie a spread of 1.85%.
It seems you have moved the goalposts, and the 0.2% I have paid as a premium over fixed for 6 years is now not reaping the benefits
that it should.
If the SVR is not ever going to fall below the Capped rate, even with the lowest BOE rates for many years, then I would presume
that I would be within my rights to expect the 0.2% premium back that I paid for the Cap if I am not getting the benefits?
I have paid extra for the capped product but I have actually received the fixed product, which is mis-selling.
This refund would equate to: 7 years x 200,000k x 0.2% = £2,800
I await your response.
mind you only got about 30 bags to go but it's the principle.
I think you have a good case check Martin Lewis page out on the net moneysaving.com or whatever it is- i cant beleive they are still in abeyance on the ruling as regards bank charges and thousands getting their money back.
seems banks caved in and were sploshing it back to customers then it was like hold your eff hnborses, went to court and it keeps being delayed the final outcome.
i think you might have a case i aint sure but chek out Martin Lewis page as i said.
- benwootton
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
MEC was +26.98% up today
As i said there is potential to make money at the moment. I expect this to rise further 2mw on news of the sale which is good for me as i am holding this stock at the moment.
(Reuters) - European publisher Mecom Group is close to reaching a deal to sell its German newspaper business to Cologne-based publisher M. DuMont Schauberg (MDS) for 165 million euros ($224.7 million), a source familiar with the matter said on Wednesday.
As i said there is potential to make money at the moment. I expect this to rise further 2mw on news of the sale which is good for me as i am holding this stock at the moment.
(Reuters) - European publisher Mecom Group is close to reaching a deal to sell its German newspaper business to Cologne-based publisher M. DuMont Schauberg (MDS) for 165 million euros ($224.7 million), a source familiar with the matter said on Wednesday.
- benwootton
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
MEC up another 11% today
Banks all well up, made another 1k on RBS stock today.
Banks all well up, made another 1k on RBS stock today.
- benwootton
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
Another +12.99% on MEC today
Big day 2mw expect with deal apparantly sorted. Then i can jump on out of the penny share
Oh and HBOS and lloyds have flown since last week. RBS doing ok too, wish i had held on but a profit is a profit
Big day 2mw expect with deal apparantly sorted. Then i can jump on out of the penny share
Oh and HBOS and lloyds have flown since last week. RBS doing ok too, wish i had held on but a profit is a profit
-
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
You should set up your own thread Ben - I'd be interested to read it. The penny share gag was only that. Fair play to you - you have the financial capacity and the time to trade regularly, and sound like you do a decent level of homework. But I wouldn't recommend your strategy to everyone.
At a market level I think we are likely to test the lows- the current rally has petered out with low volumes and no leadership in either direction. Going into reporting season, which is known to be grim, the omens are not good.
At a market level I think we are likely to test the lows- the current rally has petered out with low volumes and no leadership in either direction. Going into reporting season, which is known to be grim, the omens are not good.
- djnuttie
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
Million Dollar traders on BBC2 now. Ordinary people sent on a trading crash course then given some dough to trade with.
Could be a disaster, depending on when exactly they were let loose on the markets
Could be a disaster, depending on when exactly they were let loose on the markets
- sted
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
'when' being the operative word.
- sted
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
BTW..I'd sack the old git and give him a kick in the arse on his way out the door.
- djnuttie
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
The bird that couldn't commit to a trade would be right behind him toosted wrote:BTW..I'd sack the old git and give him a kick in the arse on his way out the door.
- benwootton
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
Enjoyed traders last night, looking at it they got involved at the worst time
The old boy was a mare, i am sure sid told him to buy the Bgas shares. Reckon i could have had a good time doing that.
My punt of the mo MEC was up another 25% today, 4th day of double digit rises, 45% up it was on open.
Personally i dont intend to sell yet, i may set a stop loss, but if more assets ( ideally the polish ) go then price has potential.
Hopefully they will unload a couple more and keep the better scandanvain stuff.
I might well set up a share thread, i bought back into banks today RBS at 49.5p, drop was dramatic and it could go to 40p but i think sub 50p is a good price. Its moved back to 51p at close and with the bank of china deal possible this could rise 2mw. banks arent for the nervy but if i bail at 53p then i make 500 notes. So happy to look to make small profits cos i am not greedy and it all adds up.
I might set up a share thread el_pappje , and was only having a banter re stocks.
Personally i think you are right re market, but the volatile nature means day trading is very good if you can get in and out. I dont mind hold medium long if they dont work.
I have done ok this year, banks mainstay and miners are on my radar in particular RIO TINTO if it goes back to 1200. Long term they are a good buy even if i miss a small trade.
I have picked a few stocks where companies have money in the bank as they are likely to get through this mess. Good thing is most shares are so low the only way is bust or up.
The old boy was a mare, i am sure sid told him to buy the Bgas shares. Reckon i could have had a good time doing that.
My punt of the mo MEC was up another 25% today, 4th day of double digit rises, 45% up it was on open.
Personally i dont intend to sell yet, i may set a stop loss, but if more assets ( ideally the polish ) go then price has potential.
Hopefully they will unload a couple more and keep the better scandanvain stuff.
I might well set up a share thread, i bought back into banks today RBS at 49.5p, drop was dramatic and it could go to 40p but i think sub 50p is a good price. Its moved back to 51p at close and with the bank of china deal possible this could rise 2mw. banks arent for the nervy but if i bail at 53p then i make 500 notes. So happy to look to make small profits cos i am not greedy and it all adds up.
I might set up a share thread el_pappje , and was only having a banter re stocks.
Personally i think you are right re market, but the volatile nature means day trading is very good if you can get in and out. I dont mind hold medium long if they dont work.
I have done ok this year, banks mainstay and miners are on my radar in particular RIO TINTO if it goes back to 1200. Long term they are a good buy even if i miss a small trade.
I have picked a few stocks where companies have money in the bank as they are likely to get through this mess. Good thing is most shares are so low the only way is bust or up.
- Surprised
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
I'd be interested in seeing your stuff in a new thread Ben as it can get a bit lost where it is now
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- FISO Jedi Knight
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
several thousand jobs go at Barclays and Merrills.
Rbs Cull is in March.
Rbs Cull is in March.
- jacksosi
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Re: BOE cuts 1.5 %
So...I get a letter back stating that they are cutting their SVR to 5.09% as of 1st Feb so my complaint that the rate did not get below 5.19% has now no grounds. Technically that is now true, but that is not the spirit of the deal that I entered into.jacksosi wrote:I sent htis letter to N'Rock a few days ago ...well nothing ventured...jacksosi wrote:I am .
I am 6 years into a 7 year capped mortgage at 5.19% which I took out to deal with the chance that rates would fall.
As I am with N/rock , their SVR when rates were 4.5% was 7.35%, so even if they pass the full cut on, their SVR will still be 5.85%, so no reduction for me.
This is almost mis-selling as when I took this mortgage out their SVR would have been much closer to base rates, and so a fall could have produced an upside. If their spread had been this large at the time I would have taken a cheaper fixed rate product. So really I have an almost useless cap. I am gonna sue .
Dear Sir/Madam,
I am writing to complain about the mortgage product that I have with yourselves.
I am 6 years into a 7 year Cap @ 5.19% .
I could have taken your 7 year fixed @ 4.99% at the same time but wanted exposure to any rate falls.
Obviously BOE rates have dived, but you now have a large spread between BOE (2%) and your SVR (5.34)% of 3.34%
When I took the deal the rates were 4% and 5.85%, ie a spread of 1.85%.
It seems you have moved the goalposts, and the 0.2% I have paid as a premium over fixed for 6 years is now not reaping the benefits
that it should.
If the SVR is not ever going to fall below the Capped rate, even with the lowest BOE rates for many years, then I would presume
that I would be within my rights to expect the 0.2% premium back that I paid for the Cap if I am not getting the benefits?
I have paid extra for the capped product but I have actually received the fixed product, which is mis-selling.
This refund would equate to: 7 years x 200,000k x 0.2% = £2,800
I await your response.
If there was any info on their side that the spread could over double from 1.85% to 4.09% I would never have taken the cap over the fixed, full stop. Therefore my complaint that their product was mis-sold holds true.
However, just as I am about to get letter number 2 underway, I get a 'Your loan rate is changing letter'. Thinking it was the change from 5.19% to 5.09% I opened it with no expectations...but the rate has changed to 3.49% .
It states this is due to my 'Base Rate Guarantee', which I don't think I have and cannot find anything on their website or my docs about it.
So does this mean
1 - they have given me a special rate due to my letter?
2 - they have made an error and will change it back to 5.09% when they realise?
3 - I have a BRG that I was not aware of, but then presumably they owe me back payments?
Now I don't know what to do as if I contact them to find out about options 1 or 3 above, then option 2 might occur!
I guess I will just keep quiet and see what they bill me this month and if it is the lower amount just take it and stay quiet.
£250 p/m saved if so
- murf
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
As predicted, down yet another 0.5% to 1.0%
http://news.bbc.co.uk/1/hi/business/7871932.stm" onclick="window.open(this.href);return false;
Stuff the savers grumbling about not getting high interest, they should think themselves lucky comared to those of us with 'savings' tied up in bricks and mortar, shares and pensions We want our lower mortagage payments!
http://news.bbc.co.uk/1/hi/business/7871932.stm" onclick="window.open(this.href);return false;
Stuff the savers grumbling about not getting high interest, they should think themselves lucky comared to those of us with 'savings' tied up in bricks and mortar, shares and pensions We want our lower mortagage payments!
- blahblah
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
murf wrote:As predicted, down yet another 0.5% to 1.0%
http://news.bbc.co.uk/1/hi/business/7871932.stm" onclick="window.open(this.href);return false;
Stuff the savers grumbling about not getting high interest, they should think themselves lucky comared to those of us with 'savings' tied up in bricks and mortar, shares and pensions We want our lower mortagage payments!
Does this have any relevence to High St lending rates etc? I think they are just overstretching the elastic between the Inter Bank lending Rate and the BoE one.
- murf
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
It does a bit though obviously not everything will come down by the full 0.5% or anything like it.blahblah wrote:Does this have any relevence to High St lending rates etc? I think they are just overstretching the elastic between the Inter Bank lending Rate and the BoE one.murf wrote:As predicted, down yet another 0.5% to 1.0%
http://news.bbc.co.uk/1/hi/business/7871932.stm" onclick="window.open(this.href);return false;
Stuff the savers grumbling about not getting high interest, they should think themselves lucky comared to those of us with 'savings' tied up in bricks and mortar, shares and pensions We want our lower mortagage payments!
Those of us with a BOE base based tracker are happy though. I'm alright Jack on that but like millions of others I have lost out far more in other less day-to-day areas.
-
- FISO Jedi Knight
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan and Feb)
i'm with Halifax variable . They have passed on about .5 to me since they have cut several percent saving about £15 eff quid a month in total
big eff deal.
IF IT WENT UP 1% THEN THEY WOULD CHARGE ME /OTHERS THE FULL 1%
IT AINT eff CRICKET
chap/
big eff deal.
IF IT WENT UP 1% THEN THEY WOULD CHARGE ME /OTHERS THE FULL 1%
IT AINT eff CRICKET
chap/
- Jonathan
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
Well I say stuff those that are saving money on their mortgages, and say that it is about time the BoE actually considered those who, along with mortgages, have also shown a bit of responsibility in their lives by putting money aside in the shape of savings for a rainy day.murf wrote:As predicted, down yet another 0.5% to 1.0%
http://news.bbc.co.uk/1/hi/business/7871932.stm" onclick="window.open(this.href);return false;
Stuff the savers grumbling about not getting high interest, they should think themselves lucky comared to those of us with 'savings' tied up in bricks and mortar, shares and pensions We want our lower mortagage payments!
I haven't seen any positive effect of these bank rates cuts at all yet... what is another one going to achieve? I hope they are just as quick to put them up when/if things turn around.
- jacksosi
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Re: BOE cuts 1.5 %
I got the new ratejacksosi wrote:So...I get a letter back stating that they are cutting their SVR to 5.09% as of 1st Feb so my complaint that the rate did not get below 5.19% has now no grounds. Technically that is now true, but that is not the spirit of the deal that I entered into.jacksosi wrote:I sent htis letter to N'Rock a few days ago ...well nothing ventured...jacksosi wrote:I am .
I am 6 years into a 7 year capped mortgage at 5.19% which I took out to deal with the chance that rates would fall.
As I am with N/rock , their SVR when rates were 4.5% was 7.35%, so even if they pass the full cut on, their SVR will still be 5.85%, so no reduction for me.
This is almost mis-selling as when I took this mortgage out their SVR would have been much closer to base rates, and so a fall could have produced an upside. If their spread had been this large at the time I would have taken a cheaper fixed rate product. So really I have an almost useless cap. I am gonna sue .
Dear Sir/Madam,
I am writing to complain about the mortgage product that I have with yourselves.
I am 6 years into a 7 year Cap @ 5.19% .
I could have taken your 7 year fixed @ 4.99% at the same time but wanted exposure to any rate falls.
Obviously BOE rates have dived, but you now have a large spread between BOE (2%) and your SVR (5.34)% of 3.34%
When I took the deal the rates were 4% and 5.85%, ie a spread of 1.85%.
It seems you have moved the goalposts, and the 0.2% I have paid as a premium over fixed for 6 years is now not reaping the benefits
that it should.
If the SVR is not ever going to fall below the Capped rate, even with the lowest BOE rates for many years, then I would presume
that I would be within my rights to expect the 0.2% premium back that I paid for the Cap if I am not getting the benefits?
I have paid extra for the capped product but I have actually received the fixed product, which is mis-selling.
This refund would equate to: 7 years x 200,000k x 0.2% = £2,800
I await your response.
If there was any info on their side that the spread could over double from 1.85% to 4.09% I would never have taken the cap over the fixed, full stop. Therefore my complaint that their product was mis-sold holds true.
However, just as I am about to get letter number 2 underway, I get a 'Your loan rate is changing letter'. Thinking it was the change from 5.19% to 5.09% I opened it with no expectations...but the rate has changed to 3.49% .
It states this is due to my 'Base Rate Guarantee', which I don't think I have and cannot find anything on their website or my docs about it.
So does this mean
1 - they have given me a special rate due to my letter?
2 - they have made an error and will change it back to 5.09% when they realise?
3 - I have a BRG that I was not aware of, but then presumably they owe me back payments?
Now I don't know what to do as if I contact them to find out about options 1 or 3 above, then option 2 might occur!
I guess I will just keep quiet and see what they bill me this month and if it is the lower amount just take it and stay quiet.
£250 p/m saved if so
My mortgage advisor checked and I had a BRG of base + 1.99% once it went under the cap, very odd but who am I to argue ...and another cut today is nice too.
Glad my capped product has actually ended up doing what I paid for finally...I was feeling really cheated.
Now I am going to stick the gains into a monthly ISA where I can lose it all
- sted
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Re: BOE cuts 1.5 %
Why do that? My mortgage has gone down from 1200/month to 700. I still pay the 1200 with no penalty, and knock the rest off my capital.jacksosi wrote:I got the new ratejacksosi wrote:So...I get a letter back stating that they are cutting their SVR to 5.09% as of 1st Feb so my complaint that the rate did not get below 5.19% has now no grounds. Technically that is now true, but that is not the spirit of the deal that I entered into.jacksosi wrote:I sent htis letter to N'Rock a few days ago ...well nothing ventured...jacksosi wrote:I am .
I am 6 years into a 7 year capped mortgage at 5.19% which I took out to deal with the chance that rates would fall.
As I am with N/rock , their SVR when rates were 4.5% was 7.35%, so even if they pass the full cut on, their SVR will still be 5.85%, so no reduction for me.
This is almost mis-selling as when I took this mortgage out their SVR would have been much closer to base rates, and so a fall could have produced an upside. If their spread had been this large at the time I would have taken a cheaper fixed rate product. So really I have an almost useless cap. I am gonna sue .
Dear Sir/Madam,
I am writing to complain about the mortgage product that I have with yourselves.
I am 6 years into a 7 year Cap @ 5.19% .
I could have taken your 7 year fixed @ 4.99% at the same time but wanted exposure to any rate falls.
Obviously BOE rates have dived, but you now have a large spread between BOE (2%) and your SVR (5.34)% of 3.34%
When I took the deal the rates were 4% and 5.85%, ie a spread of 1.85%.
It seems you have moved the goalposts, and the 0.2% I have paid as a premium over fixed for 6 years is now not reaping the benefits
that it should.
If the SVR is not ever going to fall below the Capped rate, even with the lowest BOE rates for many years, then I would presume
that I would be within my rights to expect the 0.2% premium back that I paid for the Cap if I am not getting the benefits?
I have paid extra for the capped product but I have actually received the fixed product, which is mis-selling.
This refund would equate to: 7 years x 200,000k x 0.2% = £2,800
I await your response.
If there was any info on their side that the spread could over double from 1.85% to 4.09% I would never have taken the cap over the fixed, full stop. Therefore my complaint that their product was mis-sold holds true.
However, just as I am about to get letter number 2 underway, I get a 'Your loan rate is changing letter'. Thinking it was the change from 5.19% to 5.09% I opened it with no expectations...but the rate has changed to 3.49% .
It states this is due to my 'Base Rate Guarantee', which I don't think I have and cannot find anything on their website or my docs about it.
So does this mean
1 - they have given me a special rate due to my letter?
2 - they have made an error and will change it back to 5.09% when they realise?
3 - I have a BRG that I was not aware of, but then presumably they owe me back payments?
Now I don't know what to do as if I contact them to find out about options 1 or 3 above, then option 2 might occur!
I guess I will just keep quiet and see what they bill me this month and if it is the lower amount just take it and stay quiet.
£250 p/m saved if so
My mortgage advisor checked and I had a BRG of base + 1.99% once it went under the cap, very odd but who am I to argue ...and another cut today is nice too.
Glad my capped product has actually ended up doing what I paid for finally...I was feeling really cheated.
Now I am going to stick the gains into a monthly ISA where I can lose it all
Much better than trying to save it with no decent interest rates available.
- jacksosi
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- FPL:
Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan and Feb)
That is effectively what I am doing, but instead of saving a few % by paying off the capital I am hoping that if I buy investment funds now while they are cheap, then they will outperform the overpayment option over the mid to long term. Obviously there is the risk that they could go down, but longer term I am confident that they will make money. I can then pay these amounts off the mortgage at a later date. Your option is safer, mine hopefully will be more profitable. Cue Madoff style fund losses
- jacksosi
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- FPL:
Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan and Feb)
ISA thread...viewtopic.php?f=45&t=56805jacksosi wrote:That is effectively what I am doing, but instead of saving a few % by paying off the capital I am hoping that if I buy investment funds now while they are cheap, then they will outperform the overpayment option over the mid to long term. Obviously there is the risk that they could go down, but longer term I am confident that they will make money. I can then pay these amounts off the mortgage at a later date. Your option is safer, mine hopefully will be more profitable. Cue Madoff style fund losses
- scarletjim
- Dumbledore
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- FPL:
Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan)
For me, continually reducing interest rates is the stupid and most irresponsible economic decision I have ever seen in my lifetime. Why is the world economy in this mess? Well, one of the major causes is people buying things that they can't afford, and paying too much for them (mainly property). So what does reducing interest rates achieve? It persuades people who can't really afford things to start buying them again. THAT'S WHAT CAUSED THE F****** PROBLEM IN THE FIRST PLACE YOU MORONS!Jonathan wrote:Well I say stuff those that are saving money on their mortgages, and say that it is about time the BoE actually considered those who, along with mortgages, have also shown a bit of responsibility in their lives by putting money aside in the shape of savings for a rainy day.
I haven't seen any positive effect of these bank rates cuts at all yet... what is another one going to achieve? I hope they are just as quick to put them up when/if things turn around.
For me, the answer is simple - if you want to live like kings for 10 years, buy everything you want, irrespective of the price, then you have to accept that such a period will be followed by several years of rubbish while things inevitably go back to 'normal'. So I say leave interest rates around 5%, anyone who can't pay their mortgage becuase they stretched themselves too far, TOUGH, take their house away and let them start again, lesson learned. The banks would then sell the repossessed properties and also probably end up losing out slightly - again, TOUGH, lend more responsibly in future, lesson learned.
Instead, as usual, savers and people who are 'financially responsible' have to lose out and effectively bail out all the idiots so that the world governments can 'save face' in the short term. Oh for a politician who would just say 'well we've all acted stupidly for the last 10 years, this was inevitable, now we just have to suffer for 5 years'...
- forestfan
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan and Feb)
While I think the banking sector had to be saved in some form, otherwise we would have been heading for Zimbabwe-style total economic collapse, I agree that trying to re-inflate the credit/housing bubble is not the answer.
Perhaps Government money could in some cases have been better used in directly supporting responsibly run businesses, and letting house prices come down to their natural level but writing off negative equity for some of the individuals who were pushed into buying at the peak of the market by media pressure (remember "Average house to cost £500,000 by 2012", anyone?)
Perhaps Government money could in some cases have been better used in directly supporting responsibly run businesses, and letting house prices come down to their natural level but writing off negative equity for some of the individuals who were pushed into buying at the peak of the market by media pressure (remember "Average house to cost £500,000 by 2012", anyone?)
- scarletjim
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan and Feb)
No no no, this is the opposite of what we should be doing! This just sends out the message to the general public that it's ok to f*ck up your finances, coz someone else will bail you out! Those same people will then just do the same again! People have to be made to take responsibility for their own actions, otherwise they will never learn.forestfan wrote:...but writing off negative equity for some of the individuals who were pushed into buying at the peak of the market by media pressure (remember "Average house to cost £500,000 by 2012", anyone?)
- forestfan
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Re: BOE cuts 1.5% (Nov), 1% (Dec) and 0.5% (Jan and Feb)
Well I've no sympathy for those who have over-extended themselves on credit cards, store cards and personal loans. They deserve to be the casualties of this crisis. I've got a fair bit of sympathy however for those who were bullied into going into the housing market by scare stories such as that though, their only crime was believing what the press told them, i.e. they will never afford a house unless they get in now ("now" being in 2006 or 2007).scarletjim wrote:No no no, this is the opposite of what we should be doing! This just sends out the message to the general public that it's ok to f*ck up your finances, coz someone else will bail you out! Those same people will then just do the same again! People have to be made to take responsibility for their own actions, otherwise they will never learn.forestfan wrote:...but writing off negative equity for some of the individuals who were pushed into buying at the peak of the market by media pressure (remember "Average house to cost £500,000 by 2012", anyone?)
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