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Tracker Mortgages - Can the banks do this???!!!
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Well, I have gone through all our documentation with a finetooth comb and there is no mention of a floor in our KFI, Offer or T&C's. It states that our rate is 0.23% above BOE base rate for the term of the mortgage.We have a lifetime tracker with HSBC. Will have to see if there is an issue if rates fall further.
Likewise (BOE+0.89% here). I know some people that work for HSBC so I'll clarify tomorrow.0 -
+.59% BoE base rate tracker with Abbey FlexiblePlus mortgage which I got into March 2008.
August 2007 T's & C's section 1.59 "tracking rate" says base rate plus the differential (.59%) or 0.0001% p.a. which ever is the higher.0 -
cor what a rate u have!
well done mate, how long u had that for.
ive just got the .79 above base with HSBC - i will check my paper too later, or tomorrow.
We got it in February. We were lucky we remortgaged when we did, I guess.GC 2011 Feb £626.89/£450 NSD3/7 March £531.26/£450 April £495.99/£500 NSD 0/7 May £502.79/£500
June £511.99/£480 July £311.56/£4800 -
Ian_Griffiths_Halifax wrote: »For anybody on a Repayment Mortgage with the Halifax and wanting to overpay while rates are dropping, bare in mind that while you are overpaying, you are reducing the term of the mortgage and AFAIK the Halifax are charging £10 per overpayment as you are effectively reducing the term with each overpayment.
Check with the lender first before doing this. The alternative is to set up a Standing Order for the difference between the new reduced Mortgage payment and the old Mortgage payment, and pay this into a Savings Account until there is sufficient to make a lump sum payment off the mortgage.
Halifax mortgages allow you to pay up to 10% of the mortgage off without penalty.
Ian,
My mortgage doesn't have any penalties . I'm able to overpay by as much as I want. So I'm confused by your comment!0 -
Debras_Angel wrote: »Ian,
My mortgage doesn't have any penalties . I'm able to overpay by as much as I want. So I'm confused by your comment!
My original mortgage with Abbey had this 10% condition but when I contacted them about making a capital repayment not long after Satander took over they invited me to pay off as much as I wanted without penatly in future. I think they decided my mortgage was a bit big and risky for their new rules and wanted their money back :rotfl:
The good news is I've had a number of good years in business and paid back two thirds of the original amount borrowed in the last 4 years, just as well considering current market condtions.0 -
Debras_Angel wrote: »Ian,
My mortgage doesn't have any penalties . I'm able to overpay by as much as I want. So I'm confused by your comment!
All mortgages vary so every body needs to check the terms and conditions of their mortgage.
The rules appear to be tighter on the mortgages taken out over the last few years.£2 Coins Savings Club 2012 is £4
.............................NCFC member No: 00005.........
......................................................................TCNC member No: 00008
NPFM 210 -
Debras_Angel wrote: »Ian,
My mortgage doesn't have any penalties . I'm able to overpay by as much as I want. So I'm confused by your comment!
All mortgages vary so every body needs to check the terms and conditions of their mortgage. Most repayment mortgages have a 10% restriction on them.
The rules appear to be tighter on the mortgages taken out over the last few years.£2 Coins Savings Club 2012 is £4.............................NCFC member No: 00005.........
......................................................................TCNC member No: 00008
NPFM 210 -
Thanks Guys,
Mine defo doesn't have a 10% restriction. It was one of the things we looked out for when we took it out in March 2006.
We went onto SVR in August 2008 and had already paid of approx 40k over and above the normal mortgage in this time.
So we don't have lots to go, thank god we did with the current climate.0 -
+.59% BoE base rate tracker with Abbey FlexiblePlus mortgage which I got into March 2008.
August 2007 T's & C's section 1.59 "tracking rate" says base rate plus the differential (.59%) or 0.0001% p.a. which ever is the higher.
That`s what I read in my booklet too and I have to admit I don`t understand what it means!0 -
Debras_Angel wrote: »Ian,
My mortgage doesn't have any penalties . I'm able to overpay by as much as I want. So I'm confused by your comment!
Do you have an Interest Only Mortgage or a Repayment Mortgage.
If you have an Interest Only Mortgage and have paid lump sums off it or make regular overpayments, then you aren't reducing the term, you are simply going to owe less at the end of the Mortgage term.
In my post I was referring to the fact that people have come on here reporting that they have been charged admin fees for effectively reducing the term with every overpayment on a repayment mortgage.
Basically, as Rikki said, it's a case of check your terms and conditions, but these can still be confusing. You may as well call their customer services for clarification on your specific mortgage, but make sure that you log the date and time of your call and the name of the person you speak to.I am a Mortgage Consultant and don't like to be told what I can and can't put in a signature so long as it's legal and truthful.0
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