07 Jan 2009 7:46 PM:
I think you may be disappointed.
I was under exactly the same impression as you but I have just had my mortgage with BA reviewed, that was on 4th December 2008. My next review will be same date 2009.
My agreed mortgage is based on Euribor + 1.25%.
My new rate has gone up from 5.85% to 6.5%! ie. 5.25% (Euribor) + 1.25%.
As far as I can work it out, the 12 month Euribor rate has been used to calculate my new basic mortgage rate. It is then rounded up or down, most probably up! I think that the rate that is used is the average of the last twelve Euribor 12 month rates (moving average?).The extra1.25% is then added.
If anyone’s interested please see euribor.org or the euribor-rates.eu websites.
Let me know if I’ve got it wrong. Failing that BA have pulled a fast one.
Community thread:
Mortgage Bank rate
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