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guest
Guest
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 Posted: Thu Mar 05, 2009 1:39 pm Post subject: interest rates |
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My mortgage interest rate is a tracker and is at 0.44% .With the latest drop in the BBR it would go to -0.06% in theory they would owe me money.they have said they will charge me 0.01% and refund me two weeks later.
Firstly this is not the full 0.5% reduction(breech of contract?)im sure there would be no maximum rate?
Secoundly why charge me and wait two weeks for a refund?
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 smithsussane
Joined: 18 Sep 2008
Posts: 3738
Location: Alaska
561.45 Dollars($)
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| Posted: Thu Mar 05, 2009 7:36 pm Post subject: |
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Hi guest!
Welcome to forums!
If there is a contract between you and the lender, then they cannot deny it. They will have to give you the money you owe to them. Well, I do not find anything wrong in charging you and then giving you the refund as you will get back the amount within two weeks. However, what I would suggest you is that you should ask the lender to give you a written document regarding this which will help you if you face any issues later on.
Sussane |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7448
Location: bloomfield, ct
70.12 Dollars($)
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| Posted: Fri Mar 06, 2009 12:17 pm Post subject: |
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wow
this is obviously not a loan situation that exists within the confines of the united states. sussane, please explain precisely what you mean by saying "they will have to give you the money you owe to them."
i do agree that you need to discuss this situation with your lender and request something in writing so you'll have a record.
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Jessica
Community Mentor
Joined: 08 Jun 2004
Posts: 814
Location: OHIO
195.97 Dollars($)
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| Posted: Sun Mar 08, 2009 10:39 am Post subject: |
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Certainly George, this is a situation outside the US. In fact, the poster seems to be from the UK as he's talking about tracker mortgages and the BBR or Bank of England Base Rate.
Now, I'd like to know if the poster has signed any contract stating that there'll be a reduction of 0.5% with a drop down in the BBR.
| Quote: | | Secondly why charge me and wait two weeks for a refund? |
This is something only your lender can answer best. Different companies follow different policies. Usually one benefits from any drop down in BBR. You need to check out your loan document regarding any such benefit.
Regards,
Jessica
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7448
Location: bloomfield, ct
70.12 Dollars($)
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| Posted: Mon Mar 09, 2009 7:38 am Post subject: |
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thank you jessica, for some sanity to lend to the discussion.
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George M. Akerley
Loan Consultant
860-221-5044 |
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smithsussane
Joined: 18 Sep 2008
Posts: 3738
Location: Alaska
561.45 Dollars($)
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| Posted: Mon Mar 09, 2009 7:21 pm Post subject: |
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Hi George,
I said "they will have to give you the money you owe to them." in response to the original poster's statement:
| Quote: | | in theory they would owe me money |
What I actually wanted to say was that the lender has assured that he will refund the excess amount that he is charging from the borrower and I guess the borrower should take it in writing from the lender.
Sussane |
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