hi can someone tell me how these rate cuts work? i was paying £492 a month on my mortgage it went down half % so my new rate went down 12pounds to £480 then a month later it went down, 1 and half % but it only went down to £464 ,and thats only £16 pounds but the the rate cut was 3 times as much as the first rate cut.?

Hi, I am no expert on these matters, but I would imagine this was because the half% cut was taken from £492 and the 1 and half% was taken from £464, a much smaller sum. Although a much larger rate cut, being from a lesser amount it would reduce the actual amount of money being deducted.

Hi just a quick note about the rate cuts

Not all lenders pass on te rate cut in full.

They some times only reduce the rate by inexces of 2% as when they feel it is in their interest not yours read your small print & it may help you understand.

Yes it would appear that they are cuting the rate on the current ammount rather than the original loan amount which is standard practice with all financial institutes?

If you require further explination then i suggest you contact your lender for a full explination they will help?

Yours Dr. Dave.

Doctor of Finance & Accounting

my mortgage is with c/g the tsb bank and i got the full rate cuts both time..but thanks for your replys..

hi just to let you know ,explination from bank was when taken the 1and half % off my loan amount it had not taken out novembers payment in time so im paying a bit more...think i try that one?