I have a variable rate mortgage with HSBC (Home Buyer Mortgage).
Imagine my surprise today when I received an email from them saying that my variable rate would be cut from 6.0% to 5.5%. I thought major lenders were going to pass all of the recent drop in the Bank of England rate i.e. 1.5% as a result of 'pressure' from Mr Darling or does HSBC think they are not included in this crisis.
What are the other major high street banks cutting their variable rates by on average. I know Nationwide is a building society but it is passing on the full reduction to its borrowers.
Interestingly the email from HSBC contains the phrase that they guarantee that they will not charge more than 1% more than Bank of England rate for their Home Buyer variable rate, that would mean a rate of 4.0%!. A point that I will be taking up with them tomorrow.
I would appreciate comments on this
Regards MattM