Comments on: Northern Rock Lowered Thier Standard Variable Rate (SVR), Which Saved Me A Small Fortune

By: The Landlord

The Landlord — Sun, 01 Feb 2009 21:43:40 +0000

Hey Phil, The Northern Rock SVR is now 5.09- you should get a letter through shortly, informing you. I already have got my letter- I discuss it here: Northern Rock 0.25% cut. Legally, lenders can pick and choose when they want to increase/decrease their variable rates. There's nothing anyone can do about it. However, lenders have to lower rates for those on tracker mortgages.

By: Phil

Phil — Sun, 01 Feb 2009 15:36:21 +0000

Hi, can anyone tell me whether on Northern Rock’s ‘standard variable rate’ they can legally go on charging (in my case) 5.34% when the base rate is so low and set to go even lower?

Is there any info on whether anyone has legally challenged them to drastically reduce the monthly payments accordingly – or at least, more reasonably?

Thanks

Phil (Brighton)

By: Steve

Steve — Thu, 08 Jan 2009 12:32:58 +0000

I was in the exact same position as you except that mine was a BTL mortgage and my broker was unable to find any lenders willing to lend to me as the LTV of the flat had increased to 90% due to the recent drop in house prices.
I was shocked by Northern Rock’s decision not to offer me any fixed rate but instead advising me to search with other lenders even though I’ve been a good customer and never missed a mortgage payment over the years.
The drop in SVR has been a Godsend and I hope it stays low and even drops further!

By: Leanne

Leanne — Tue, 30 Dec 2008 14:18:38 +0000

mine only got cut by 0.5% saving me £16 a month!!!!!!

By: stevo

stevo — Sat, 20 Dec 2008 20:59:37 +0000

last half day of work on friday, I was ready for a good go with the Rock about my rates but finally received the letter when I got in, result £60 a month better off.

By: JM

JM — Fri, 19 Dec 2008 09:56:23 +0000

Hi Stevo,

Is you mortgage a together mortgage? If so, that will be why you have not had information about the rate cut. They have certainly been dragging their heels as far as implementing the base rate cuts. The new SVR as of 01.01.09 will be 5.34% but for together products NR are reducing their together SVR to 5.38% as of 01.01.09. Thereafter we should be informed of the benefit of latest 1% drop which should apply in Feb. Hope this helps

By: The Landlord

The Landlord — Fri, 19 Dec 2008 00:40:51 +0000

Hey Stevo,
I agree with Ian. You should have heard something buy now. You should call them up and find out what is going on.

Are you on a variable or tracker mortgage for sure? If so, how long have you been on a variable/tracker rate?

Kind regards

By: Ian McCallum

Ian McCallum — Fri, 19 Dec 2008 00:37:54 +0000

stevo,. you have to give these people a call and tell them that you expect the cut to be coming your way , assuming you are about to be on the variable rate ?

By: stevo

stevo — Thu, 18 Dec 2008 19:19:35 +0000

I have read with interest your comments regarding the rate cuts, but have yet to feel the benefits of these, I noticed some of you got your reductions on the December payment, we’re not far off the January payment and I have still not had a letter telling me my rate is coming down….. I’m still on 7.48

By: Celena

Celena — Fri, 05 Dec 2008 15:02:28 +0000

I had the same problem, my fixed rate is at 4.99% and it ends in February and we were expecting to have to pay about £280 a month more. Due to November’s cut, we will only be paying £90 more a month, which is great. I just hope they pass on this months cut as that will take the SVR lower than our current rate! I didn’t know Northern Rock sent letters trying to get people to remortgage elsewhere, I knew we couldn’t remortgage with them though. No point the wasting the paper on us, as due to the drop in house prices, we own less than 5% of the house now anyway and nowhere will give us a mortgage!!!