AMP change in interest rates

[Bcalder]

My new investment property purchase settles today. At the time of application I signed up to a 3 year fixed rate with AMP. At the time and up until yesterday that rate was advertised at 4.94%
Yesterday AMP started advertising their new fixed rates of 4.70% for 3 years effective 27/7/14.
I contacted my broker who advised that I would need to delay settlement until Monday if I wanted the new rates. With the settlement already booked in, it was too much of a hassle to move. I sent a request to AMP via the broker to consider giving me the new rate, but they wouldn't budge.

I had a similar experience last year with a loan with CBA last year, but CBA were much more flexible and agreed to give me the lower rate.

Lesson learnt. When purchasing a property, rather than completing the application form with a fixed rate, sign up to a variable rate and then change to fixed rate after settlement.

 

[see_change]

Would you think the same if rates had gone up ?

 

[mumbai]

Delay the settlement for a day. Won't cost you much in penalties.

 

[S.T]

Can they change it to variable? or yeh, delay settlement as suggested.. the cost should be a lot less.

 

[Peter_Tersteeg]

Switching to variable prior to settlement would require new loan contracts. It'd take AMP weeks to sort that out.

Best to delay settlement until Monday and wear the costs. It's now 3:47pm on Friday. Settlements probably already happened...

 

[Jamie M]

Agree with above - delaying settlement by one day shouldn't incur much of a financial burden. Ask your solicitor.

Cheers

Jamie

 

[Of The Vultures]

It'd take AMP weeks to sort that out.

If he's lucky! And then they'd probably get the interest rate wrong anyway

 

[RetireRich101]

AMP will change to 4.85% for 3years, not 4.70% according to their web site

http://tinyurl.com/qgsah36

 

[Bcalder]

I contacted my broker earlier in the week to see if I could change to variable as I saw a lot of fixed rates drop and so wanted to hold off for a bit before fixing, but he said i would have to complete new forms which wouldn't have been ready before settlement.
It was only after that the AMP had announced they were lowering their rates from Monday.
When I contacted my solicitor on Thursday the settlement had already been booked in, the cheques had been sent to the settlement agent, it would have resulted in interest for late settlement and potentially higher legal costs for the rework. This would have reduced any savings I had from the lower interest rate. Settlement went through yesterday. I'll wait and see if AMP give me the lower rate, but I won't be holding my breath

 

[Bcalder]

AMP will change to 4.85% for 3years, not 4.70% according to their web site

http://tinyurl.com/qgsah36

I'm on the affinity package with an extra 0.15% discount