Hi Everybody!
Like the rest of the country, I was quite pleased about the recent rate cut by the bank of england. I have been stuck on Northern Rocks SVR since my fixed term ended in August as our house value has not risen enough for us to remortgage (due to the unsecured loan part, I don't really understand the ins and outs, but that's the jist!). As far as I was aware, Northern Rock would be passing this on and our mortgage repayments could reduce up to as much as £100 a month. We currently pay around £541.
This morning I received a letter from Northern Rock advising me how much this was going to change. Instead of the 1.5% rate reduction I was expecting it has gone down from 7.48% to 7.33% - 0.15% reduction! Our repayments have gone down a measly £8 a month. Now don't get me wrong, I am happy about any reduction, but compared to what I was expecting, this seems like a small amount. Can anyone tell me if this is right?
Lisa