Silvio Dante
Registered User
- Messages
- 127
I have for a number of months being communicating with KBC on why the decrease they announced last October was not passed on to us despite us being on a standard variable rate mortgage with them.
I have suspected their answer but had it confirmed in writing in recent days.
Quote:
"The announcement in the media of the rate change effective 1st December 2015 was a reduction in the Banks standard variable rate from 4.5% to 4.25%."
Because my mortgage was originally taken out at a slightly more favourable SVR at the time (I assume because of a low LTV) I was not on 4.5% last October.
Therefore KBC exclude me.
This in my opinion has monstrous implications for all new customers of KBC currently signing up to SVR mortgages substantially lower than the 4.25% KBC apparently use as their de facto benchmark.
If for instance KBC tomorrow announce they are reducing their SVR from 4.25 to 4.0% anyone who took out a new mortgage recently at a lower SVR 4% (ie everyone!) are likely to be excluded.
In essence new customers are signing up to something that isn't in fact KBC's SVR.
This to me is a practise that needs to be stopped, it is at best sneaky, at worst......
Based on my experience (all five increases in KBC's SVR were passed on to me since 2010) new customers are going to get fleeced as KBC will at will announce decreases to the top rate SVR only but will invariably pass on all increases.
What are people's views on this?
Is this fleecing on a grand scale or just yet another example of banks being incredibly devious in their announcements. I would imagine anyone who read their announcement last October who had a SVR mortgage would have fully expected the rate reduction to be applied.
Is it a matter that I should raise with the Financial Ombudsman?
btw
apologies if this matter has been previously discussed, I doubt I am the only one.
I have suspected their answer but had it confirmed in writing in recent days.
Quote:
"The announcement in the media of the rate change effective 1st December 2015 was a reduction in the Banks standard variable rate from 4.5% to 4.25%."
Because my mortgage was originally taken out at a slightly more favourable SVR at the time (I assume because of a low LTV) I was not on 4.5% last October.
Therefore KBC exclude me.
This in my opinion has monstrous implications for all new customers of KBC currently signing up to SVR mortgages substantially lower than the 4.25% KBC apparently use as their de facto benchmark.
If for instance KBC tomorrow announce they are reducing their SVR from 4.25 to 4.0% anyone who took out a new mortgage recently at a lower SVR 4% (ie everyone!) are likely to be excluded.
In essence new customers are signing up to something that isn't in fact KBC's SVR.
This to me is a practise that needs to be stopped, it is at best sneaky, at worst......
Based on my experience (all five increases in KBC's SVR were passed on to me since 2010) new customers are going to get fleeced as KBC will at will announce decreases to the top rate SVR only but will invariably pass on all increases.
What are people's views on this?
Is this fleecing on a grand scale or just yet another example of banks being incredibly devious in their announcements. I would imagine anyone who read their announcement last October who had a SVR mortgage would have fully expected the rate reduction to be applied.
Is it a matter that I should raise with the Financial Ombudsman?
btw
apologies if this matter has been previously discussed, I doubt I am the only one.