Rip off bank interest rates TSB

ssvectra

I had a morgage with TSB with a fixed interest rate of 6.5% over 10 years which finished the fixed rate in Aug 2011 which then reverted to a variable rate. I also like many others took out equity realease loan in 2006 at the variable rate at the time was 4.89%.

I checked the interest rates on my loans this week only to find that both my loans original loan from fixed to variable this week has an interest rate of 6.05% and my equity realease loan has a different interest rate of 5.89%. bearing in mind that both are now variable ?.

Puzzeled i phoned TSB line to enquire why I was paying two different interest rates on variable rate loans.

I was informed by a member of staff at the TSB that I took out the loans at different times, and that was the reason for the different rates, still very puzzeled at this reply from the TSB I have requested written clarification on this.

Guess what I am still waiting, so beware and check your interest rate carefully.

gerrycollins

that would be true. When you take out a loan you sign an agreement to a particuclar intrest rate. If the bank increase or decrease their rates at say 1% then all your intrest rates at variable will adjust by that figure.

When you took out your original mortage you would have signed for your fixed rate for a period of time with the T&C's basically saying that when the fixed period is up your mortage is subject to the intrest rate at the due date.

if you restructured your equity release at the same time your mortage loan went from fixed to variable then both loans would be at the same intrest rates.

maxer68

depending on how much your equity release was and current mortgage balance v value fo house, you may find it easy to switch to another lender.

If you bought in 2001, then it will be well before prices spiked, you'll have 10 years paid off and unless it was a very substantial equity release, you'll probably find you are at 60% loan to value.

Even if you are at 75% loan to value, you should find it easy enough to switch at a far better rate at circa 4% - 4.5%

And rates will not be rising again for some time to come.

ssvectra

Just received this reply from TSB on Friday and quote the following


"I confirm we no longer offer the standard variable rate on morgage accounts when you came off the fixed rate (6.50%) on 5th Aug 2011 the only available variable rate product available was our LTV variable rate which is currently 6.05%"


Can anyone tell if all banks have done away with their standard variable rates or is just another way for TSB to screw over hard pressed morgage holders for more money just to boost their profit margins :eek:

i am up €5.00 per month or 16c per day having just come off a very expensive 10 yr fixed rate @ 6.50%

I just cant work out what i can splash this 16c a day extra cash on.

dudara

Moved to Banking & Insurance & Pensions

dudara