Mortgage interest rates decrease example letter

Below is another sample letter received from the lender when mortgage interest rates changed (were reduced). It's very well written and simple to understand. Note the careful wording when the sender is talking about insurance issues. Also note that they don't actually state the interest rate - the omission is intentional and is meant to give them room to manoeuvre to avoid misunderstandings. Please as always please note that all names and companies featured in these sample letters should be considered fictitious.

________________________________

Dear Mr/Mrs J

Re: Property Address: 364 Newport Street Drive, Downing, UK

We're writing to you following the Bank of England's decision on 8 January 2009 to decrease the Base Rate. We'll be reducing our interest rates on 1st February 2009, and so you'll receive the benefit of the reduced rate from this date. We want to keep you informed of how these changes will affect you as outlined below.

Your monthly repayment will change to £120.00 and will be collected from 03 April 2009.

We want to make sure we give you enough time to change your payment. To do so, we have to give you sufficient written notice whether the rate increases or decreases. This means if your payment is due after the 9th day of any month your payment will change the month following the interest rate change being applied. If your payment falls due between the 1st and 9th day of any month the revised repayment will be applied two months following this date. However I can assure you, you'll not be financially disadvantaged by the delay in collecting the revised payments as the interest rate is decreasing; any additional amount collected will reduce your balance.

If you've arranged to pay a different amount with us, we'll continue to collect this.

What happens next?

We'll take care of all your direct debit payments for you. If you pay your mortgage by standing order, we've enclosed a standing order form for you to complete and return to your bank.

If you have an Accident and Unemployment Policy, such as Mortgage Repayment Cover or Home Insurance remember to review your benefit amount, as your payments will have changed.

We want to provide you with the best service and realise that you may have some questions about the rate changes, so we've answered some key questions for you on the reverse of this letter. We've also included some helpful telephone numbers.

Yours Sincerely,

Signed

Sender's Name
Operations Leader
Mortgage Administration Teams

Our tracker rate mortgages are linked to Bank of England’s base rate (also known as Bank of England repo rate). Details of this rate can be found on the Bank of England web site or in the Financial Times or other leading newspapers.

_______________________________

More credit letter samples are available from the credit letters website. To learn how to write effective letters click here


Mortgage interest rate change letter
Mortgage interest rate change letter

More by this Author


2 comments

Mark 3 years ago

I had car accident (it wasn't my fault, it was parekd when another car run into it). Few days after I've received a letter from my isurance company saying: Please contact us to confirm how the details of the other party were optained? . Also they are asking me if I was a witness of the accident or did a witness provide me with information. I don't know what exactly they are asking about? Dothey want to know how I get details of the other driver or are they asking about the company that have my car now to repair it?


Romilda 3 years ago

其實長遠黎講 呢五條友都靠唔住 即使CK兄做咩都好 都俾到個message全世界 老細係會因為一d 同事嘅過份動作而有反應 可能呢刻會搞得掂 但係亦唔可以俾嗰四條搞事份子好過 否則只會令全世界有樣學樣 至於咩叫唔好過 可以係warning letter 私下警告 晉升機會降低 加人%少d.....等 仲要講到明俾佢地知 有事應該係搵埋你成team人一齊傾 同埋要比個message 老細知件事係成team 人都唔妥 極度要求老細去解決 唔係用辭職去威脅 至於Mani 我覺得要唔傷佢自尊又俾佢贏 呢個世界冇咁著數 我諗唯一唔炒得嘅原因 CK兄都講左 就係唔想俾嗰四條友咁囂 其他嘅 我諗CK兄要搵個第二個頂Mani唔難 我覺得唔係要俾新post 去做 我諗唔會有人服 反而可以係停職留薪 等嗰四條友搞掂返自己d工作先 所有野direct rrepot to 老細 甚或老細自己空降落去manage個team先 mani做助手 但係暗地裡係架空左Mani.....都可能得.......吹水吹得太多 希望有用啦~~~

    Sign in or sign up and post using a HubPages Network account.

    0 of 8192 characters used
    Post Comment

    No HTML is allowed in comments, but URLs will be hyperlinked. Comments are not for promoting your articles or other sites.


    Click to Rate This Article
    working