Nationwide and Halifax seek legal advice over "collars".

timmo44 · 9 January 2009 at 11:04AM

luckyfool wrote: »

I'm not sure I get your point here though.

The risk point they were making was that by taking out a tracker, potentially the base rate could have gone up and up again to the point where people could no longer afford to pay the interest. (Everyone remembers the 15.4% etc rates from the late 80's.) That's the gamble with any rate that's variable.

cactiphile71 · 9 January 2009 at 4:02PM

You might want to consider what would happen if people try to challenge the banks on the collars.

Banks response - "Fine - if you no longer like the product , we'll refund your arrangement fee, now pay off your morgage and go get a new one somewere else"

Out come - banks lose a tiny bit paying the arrangement fee, but will make £££ remorgaging each others customers at much worse over all rates.

Bottom line, is even if collars are enforced at 2 or 2.5% we still £100's better off than we were 6 months ago > I just wish that the extra wasn't going straight into my electricity companies pocket.

bencz · 12 January 2009 at 11:51AM

Viva_Steve wrote: »

I also have a Portman tracker mortgage. It did not have a collar, and that is one reason why I specifically chose that mortgage. An answer to a question on the Nationwide website (http://www.nationwide.co.uk/intermediaries/former_portman/questions.htm ) says 'A former Portman mortgage will remain subject to it's existing terms and conditions, including overpayments limits.'.
So Nationwide better not try and force a collar on me, or I'll go mental.

Hi,

I am in a similar situation to you and have contacted Portman this morning (though it is now Nationwide they still have two distinct systems and offices, so you have to call 0845 60 90 600 with any Portman questions) The guy on the phone assured me that my interest rate would drop the full 0.5% to 1.5% and was not affected by the collar/floor.

HTH

Ben

montybert · 21 February 2009 at 2:55AM

i have a mortgage with dunfermline bs, but originally took out my mortgage with gmac, they then sold it on to the above within a month. Today i receive a letter from dunfermline adv me as per my documetation that my mortgage would go no lower than 2.75%. i was never advised of this through gmac (ive got to get the paperwork out to double check, but i think i would have noticed this as i used to work for a conveyancer) but also when dunfermline took my mortgage over they adv me that everything would stay the same as before. So they hjavent given me anything different, what do i do if i find that i am right, as i want my mortgage to drp as all of us do,

hoping for a reply thanks very much

Nationwide and Halifax seek legal advice over "collars".

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