Comments on: Use interest rate cuts to reduce mortgages http://dofonline.co.uk/blogs/the-edge/interest-rates/use-interest-rate-cuts-to-reduce-mortgages-1144414/ Richard Northedge takes on corporate finance Tue, 22 May 2012 06:40:57 +0000 http://wordpress.org/?v=2.5.1 By: AL http://dofonline.co.uk/blogs/the-edge/interest-rates/use-interest-rate-cuts-to-reduce-mortgages-1144414/#comment-5918 AL Wed, 15 Apr 2009 14:49:29 +0000 http://dofonline.co.uk/blogs/the-edge/?p=267#comment-5918 I agree with your logic however on a practiacal note.. 1. As your LTV ratio comes down banks are not very forthcoming in moving or even notifying you that you could be on a better rate. 2. Even if we wanted to keep the payments level with all the rate decreases, the banks have not made it easy for you to do so.. my bank has not even asked even though I want to keep paying more to reduce the debt and I don't know haw it would work (and sometimes it seems too much hassle for people as banks are not providing information in an easily accessible form). 3. Lender are not passing on cuts even to current customers that are coming off fixed rates. Example is that I know someone that came off a fixed rate of 4.89% in October 2008 and now they are paying 4.99% on Alliance and Leicester SVR even though the base rate is 0.5%... It seeems the banks are still out to rip us off.. when will someone step in and make sure the consumer gets a fair deal. They are not against banks making profits but it seems this is down right racketeering as some people do not have a choice but stay to with the current lender. I agree with your logic however on a practiacal note..

1. As your LTV ratio comes down banks are not very forthcoming in moving or even notifying you that you could be on a better rate.

2. Even if we wanted to keep the payments level with all the rate decreases, the banks have not made it easy for you to do so.. my bank has not even asked even though I want to keep paying more to reduce the debt and I don’t know haw it would work (and sometimes it seems too much hassle for people as banks are not providing information in an easily accessible form).

3. Lender are not passing on cuts even to current customers that are coming off fixed rates. Example is that I know someone that came off a fixed rate of 4.89% in October 2008 and now they are paying 4.99% on Alliance and Leicester SVR even though the base rate is 0.5%…

It seeems the banks are still out to rip us off.. when will someone step in and make sure the consumer gets a fair deal. They are not against banks making profits but it seems this is down right racketeering as some people do not have a choice but stay to with the current lender.

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