Thanks for that Brian. I didn't realise it was linked to their SVR, I thought perhaps it was some kind of black magic ;) Anyway, I don't expect their SVR has gone down with the BOE base rate, given that they need to attract savers and hence have to keep savings rates high at the moment (they don't borrow from international money markets being mutualised but instead need to attract depositors - I think I understand this correctly). I guess I'll just have to pray the SVR comes down. I wish I'd gone with a BOE base rate tracker now :/.

Hi Robinson,

This is where alot of people get tracker and discounted rates mixed up. A tracker follows the BoE base rate, a discounted rate follows the lender's SVR, which may or may not be set up to match the BoE base rate. Your mortgage offer will tell you exactly which you have, and will also tell you exactly when changes in base rate or disounnts off SVR will be passed on to you.

Brian

I took out a "tracker" mortgage with the Coventry last January. It was tracking around .2 above base rate, but it's not a proper tracker, i.e. guaranteed to be x above base rate, I believe they can change the interest rate as they please. Anyway I haven't heard anything from them about the recent .5 reduction in base rates. Does anyone know whether I can expect to see it, i.e. whether they are or are not going to pass it on to existing borrowers on their Flex products?