Just found out that HSBC aren't cutting their mortgage rate as they promised. EDIT - They are if you've got a guarentee!! - HotUKDeals
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Just found out that HSBC aren't cutting their mortgage rate as they promised. EDIT - They are if you've got a guarentee!!

Benjimoron Avatar
8y, 1m agoPosted 8 years, 1 month ago
HSBC have dropped their policy of not having their rate more than 1% above the base rate so therefore aren't going to be passing on any savings of the base rate cut as they promised they would do.

Really gutted, only took the mortgage on the basis that I knew it would always be around the base rate and they couldn't just stick me on whatever rate they felt like, now they've changed it and I'm stuck paying £80 a month more than I should be as are probably millions of other customers. Meaning an extra few hundred million pounds income for them every month which they are not entitled to!!!

I doubt there's any way of getting them to stick to their agreement but really annoyed that someone doesn't step in and force them to.


EDIT - Ignore me, I have pressed them on the matter after their initial answer of "we won't be passing the savings on to our customers" and it turns out that they will if you have the base rate guarentee on your mortgage.
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Benjimoron Avatar
8y, 1m agoPosted 8 years, 1 month ago
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#1
I feel for you mate... luckily i plumped for the Woolwich lifetime tracker at base rate plus 0.18% just before it all went to pot.. that deal is now base rate plus 1.29% .. they are bleeding everyone dry because of their greedy ways in the past. hopefully some sort of legislation will be there to help you.. good luck
#2
KERMITZBITZ
I feel for you mate... luckily i plumped for the Woolwich lifetime tracker at base rate plus 0.18% just before it all went to pot.. that deal is now base rate plus 1.29% .. they are bleeding everyone dry because of their greedy ways in the past. hopefully some sort of legislation will be there to help you.. good luck


Good luck, as mine was effectively base rate + 1%, now it's base rate + 1.75%. Suprised they can change it without even telling people.

I hope they don't decide to change yours.
#3
i would have thought it was a contract between them and you.. I'm sure there must be some legal implications.
#4
HSBC have however lowered their savings rates, no surprise there...:roll:
#5
HSBC should've been the one to give most of the interest rate drop, they have more money than they lend so they are on solid footing...
#6
KERMITZBITZ
i would have thought it was a contract between them and you.. I'm sure there must be some legal implications.


Same here, I'm sure they could drop it for new customers but not drop it for old ones. They'd probably say I could leave if I want but I don't think I'd be better off elsewhere, just annoyed that I should be £80 a month better off with HSBC.

Can't believe there's not more publicity to their dishonourable actions but I guess seeing as they haven't told anyone then not alot of people know!
#7
Hi their Mortgage Special – Remortgage Life Time Tracker (Maximum Loan Balance N/A & Maximum LTV 75%) is still being advertised as base rate + 0.79 for term.
#8
Hey, whenever did a bank become your friend...they are a business designed simply to get the most money they can from the public. Bad news that but a good lesson for people to stay well within their means and expect the unexpected. My first mortgage was in the early 90's and rates were 14-15%. it could go there again one day...
banned#9
It's wrong that they are doing this and changing the rules - though I'm sure there will be something within your contract that says they can do so.

However - if you were specifically told the rate would always be bank of England Rate + a fixed percentage, that suggests to me you have been missold. If you feel strongly enough, write to the FSA and complain (after you have complained to HSBC and been told "tough". It wouldnt be the first time a bank hopes they can get away with things that legally they can't!
#10
guv
It's wrong that they are doing this and changing the rules - though I'm sure there will be something within your contract that says they can do so.

However - if you were specifically told the rate would always be bank of England Rate + a fixed percentage, that suggests to me you have been missold. If you feel strongly enough, write to the FSA and complain (after you have complained to HSBC and been told "tough". It wouldnt be the first time a bank hopes they can get away with things that legally they can't!


Thanks guv, no hard feelings eh?!?

We were told face to face that it would never go above base rate + 1%. Obviously I have no proof of this so I doubt I would get anywhere. They're not going to make a judgement for a single customer though. If millions of people were bothered then something may be done, but I doubt that people have the spare time to fight it. Too much other stuff to do at the moment!!

It also comes down to whether the polict they had was deemed to be part of the reason that people took the mortgage. I think for most people it would have but HSBC would probably argue that the policy wasn't linked to the contract and therefore they can change it whenever they want.

IMO it's just a dishonest thing to do.
#11
I imagine this capping was a time limited feature on their Standard variable rate mortgage which has now expired. I don't think this would have happened if you had taken a Tracker/Fixed rate mortgage.
banned#12
Benjimoron
Thanks guv, no hard feelings eh?!?


Whatever is said in another thread wouldn't affect my judgement.... besides, it was hardly heated! Though this is not the first time you've asked similar.... I dont hold grudges, period (Unless you are a troll - then thats different!)

We were told face to face that it would never go above base rate + 1%. Obviously I have no proof of this so I doubt I would get anywhere. They're not going to make a judgement for a single customer though. If millions of people were bothered then something may be done, but I doubt that people have the spare time to fight it. Too much other stuff to do at the moment!!

It also comes down to whether the polict they had was deemed to be part of the reason that people took the mortgage. I think for most people it would have but HSBC would probably argue that the policy wasn't linked to the contract and therefore they can change it whenever they want.

IMO it's just a dishonest thing to do.


I think the FSA would take on board what you have said. I'm in a similar boat as far as my 1/2% above BoE rate is concerned (Though I dont think an outstanding debt of £800 - to which I pay no interest - has any real substance for a complaint!)
#13
col
I imagine this capping was a time limited feature on their Standard variable rate mortgage which has now expired. I don't think this would have happened if you had taken a Tracker/Fixed rate mortgage.


It was their policy, no one ever mentioned that it was time limited. The word they used was "never" which means to me forever if you know what I mean!
#14
guv
Whatever is said in another thread wouldn't affect my judgement.... besides, it was hardly heated! Though this is not the first time you've asked similar.... I dont hold grudges, period (Unless you are a troll - then thats different!)



I think the FSA would take on board what you have said. I'm in a similar boat as far as my 1/2% above BoE rate is concerned (Though I dont think an outstanding debt of £800 - to which I pay no interest - has any real substance for a complaint!)


You may be right but who has the time to fight something you might not win anyway? Not me!!

There's a little troll inside everyone btw!
#15
Benjimoron
It was their policy, no one ever mentioned that it was time limited. The word they used was "never" which means to me forever if you know what I mean!


From experience these always have guarantee expiry dates on standard products and not normally longer than 2 years where they look at it again. Im sure they told you "never" but the T&C's probably won't have :)
#16
Apologies for a bit of mis-information here. I decided to press HSBC on the matter after the initial "we're not passing the saving onto our customers" answer. Turns out that they will be passing it on to people with the guarentee.
#17
Cool- remember they do have one calender month of the base rate changing to stay within the 1% :)
#18
col
Cool- remember they do have one calender month of the base rate changing to stay within the 1% :)


Yep, that's how I always understood it. My dad told me they weren't passing on the cut so I checked on the net and it all looks like they're not passing on the cut. Phoned them and they said they're not passing on the cut. Posted here and MSE and someone from MSE gave me a few more details and the name of my tariff so I phoned them again and had to push them for a definate answer whether they will or won't but the answer was they will!

Happy again now!!

Thanks for all help and support.
#19
Great news, a nice happy ending...:thumbsup:

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