HSBC Mortgage - Never 1% above Bank Rate

[babynan]

Hi,

I wonder if any one can help me please, in 2002 I took out a Mortgage with HSBC, it was a standard variable repayment mortgage, but with a inbuilt guarantee that interest charged would never be more than 1% above the Bank base Rate.

I looked into changing my mortage last year and when I spoke to one of the HSBC mortgage advisors he even advised me then that I would not get the same deal as they are not offered anymore, which was all fine and I continued with my same mortgage.

But I have recently realised that on all occasions that the base rate was changed and went lower, I was notified that my mortgage repayments would be reduced but each time it was a couple of months later ( when the base rate increased, I was notified that the increase in my mortgage repayments would take effect straight away.)

I have been considering what I should or could do about this for a while now, and I have realised when reading todays news that they HSBC do not intend to pass on the latest rate cut to any of its customers.......

Does anyone know if I am able to anything about any of this please? Would help to know if I have the right to address this issue with the bank or not.

[gizmo111]

what is the exact wording on the deal?

[PGH7447]

But I have recently realised that on all occasions that the base rate was changed and went lower, I was notified that my mortgage repayments would be reduced but each time it was a couple of months later ( when the base rate increased, I was notified that the increase in my mortgage repayments would take effect straight away.)

 

And your suprised at this I thought everybody knew that Banks work to different timescale to the rest of the world, they have a 7 day week when you owe them money or it is in their interest and a 5 day week when it is in their interest

 

therefore, if rates go down it takes 2 months or more to re-calibrate your rate and if they go up it is automatically done overnight:D

 

how else do you think they earn their bonuses, not by good banking practices but by fleecing Joe Public, and then getting our tax dollars when they screw up.

 

Rant Over

 

Some advice now ask them why it took so long on each occasion and demand that the cuts are backdated to the bank of england date

[babynan]

Hi,

Thanks for quick responses,

 

On the Key Facts Document, in the description part of the Borrowing, it states the following:

 

"We guarantee for the life of the loan that, within 1 calandar month of a Bank of England base rate reduction, we will amend our Home Buyer Mortgage variable rate so that it is not more than 1% above the Bank of England base rate "

 

Hope that this helps...............:-?

[PGH7447]

So

You pay mortgage on 6th of every month

 

10th January BOE cuts rate from 7% to 6%,

 

9 Feb HSBC Cuts Rate from 8% to 7% and informs you that from 6 March you new payments will be etc etc

 

so 9 Feb till 6 March is in their eyes less than 1 month;)

 

however in your eyes 10 Jan till 6 March is 2 months:mad:

 

you get the picture, its all down to when they decide to follow the cut if ever

[babynan]

So

You pay mortgage on 6th of every month

 

10th January BOE cuts rate from 7% to 6%,

 

9 Feb HSBC Cuts Rate from 8% to 7% and informs you that from 6 March you new payments will be etc etc

 

so 9 Feb till 6 March is in their eyes less than 1 month;)

 

however in your eyes 10 Jan till 6 March is 2 months:mad:

 

you get the picture, its all down to when they decide to follow the cut if ever

 

 

Hi,

Thanks for this, now I understand it better, at least I know that its being done the way that it should and that I am not being cheated.

Once again thanks to all for your help.

[jahman]

Hi Babynan,

 

I too have this type of HSBC mortgage and was wondering if and when my rate cut will come through. Fingers crossed it'll be soon;)!

 

I'm expecting a few more rate cuts to be frank and it could turn out that this is one of the best mortgages to have! I hope so at any rate.

 

Cheers,

 

jahman

[Ice8]

Can't complain about the speed of HSBC's response if it's in response to the change on 6-Nov-2008

 

I’ve just (8-Nov) received messages from HSBC, regarding change of mortgage rate as follows:

Following the decision by the Bank of England to decrease its base rate, we have now decreased our mortgage rates.

 

Your interest rate of 6.00% changed on 7November2008.

 

The new interest rate is 5.50%, this is our Home Buyer Mortgage variable rate.

 

Our Home Buyer Mortgage variable rate may vary but we guarantee not to charge more than 1% above the Bank of England base rate.

 

Perhaps the banks are still having problems with their maths as the recent problems have indicated, but if the Bank of England base rate is now 3%, then doesn’t that mean a guaranteed maximum of 4% and not the 5.50% they’re proposing to charge? Maybe it was in response to the change on 8-Oct to 4.5%, or maybe it's the case that a guarantee from a bank is worthless?

[jahman]

Can't complain about the speed of HSBC's response if it's in response to the change on 6-Nov-2008

 

I’ve just (8-Nov) received messages from HSBC, regarding change of mortgage rate as follows:

Following the decision by the Bank of England to decrease its base rate, we have now decreased our mortgage rates.

 

Your interest rate of 6.00% changed on 7November2008.

 

The new interest rate is 5.50%, this is our Home Buyer Mortgage variable rate.

 

Our Home Buyer Mortgage variable rate may vary but we guarantee not to charge more than 1% above the Bank of England base rate.

 

Perhaps the banks are still having problems with their maths as the recent problems have indicated, but if the Bank of England base rate is now 3%, then doesn’t that mean a guaranteed maximum of 4% and not the 5.50% they’re proposing to charge? Maybe it was in response to the change on 8-Oct to 4.5%, or maybe it's the case that a guarantee from a bank is worthless?

 

Yep, that's the response to the 0.5% reduction from October 8th. Hopefully, next month we'll get the 1.5% knocked off too;).

 

Cheers,

 

jahman