Tracker Mortgages - Can the banks do this???!!!

jimwillsher

I don't think Intelligent Finance has similar rules, but there always seems to be a lag. My mortgage date is 5th, so yesterday's payment went out at 5% + 0.34%. Today my IF account shows my regular payments as 4.5% + 0.34%. So, my next payment (5th December) will be at 4% + 0.34%, then on 6th December my regular payments will reflect today's cut, e.g. 3.34%.

So, with the rates falling I'm quite happy, since mine is 0.34% above base for the life of the mortage, and as far as I can see there's no collar.

All very confusing!



Jim

Kez100

krrcwl wrote: »

But can Abbey delay this? As far as I'm aware a tracker is suppose to track, not change when they feel like it.

My Abbey tracker rate changed by -0.5% on 3rd November (first Monday in month) and since we have had it - nearly seven years now, it always has gone up at the start of the next month - same happens for us when rate goes up, so it hasn't bothered me. Do you have an online account to check the rate being charged at the moment?

I don't know if I have a collar as my account is very old (Abbey National one) and I haven't dug out the T and C's.

marshallka

From the news page on google

Abbey and Intelligent Finance both increase their rates on tracker deals which is a real kick in the teeth for borrowers. Anyone taking out a tracker deal with these providers will effectively be paying the same rate as before, which means neither provider will lose out when the tracker rate drops.
http://www.easier.com/view/Finance/Mortgages/News/article-214022.html

Just rang intelligent finance and it says on answer that HBOS are reviewing the rate change and will let people know within 30 days...

AdrianHi

Kez100 wrote: »

My Abbey tracker rate changed by -0.5% on 3rd November (first Monday in month) and since we have had it - nearly seven years now, it always has gone up at the start of the next month - same happens for us when rate goes up, so it hasn't bothered me. Do you have an online account to check the rate being charged at the moment?

I don't know if I have a collar as my account is very old (Abbey National one) and I haven't dug out the T and C's.

I'll check on mine then, should be down by 0.5% on the same day. Got no letter though. Should be able to see it by logging on the the "emortgage" web site.

marshallka

Kez100 wrote: »

My Abbey tracker rate changed by -0.5% on 3rd November (first Monday in month) and since we have had it - nearly seven years now, it always has gone up at the start of the next month - same happens for us when rate goes up, so it hasn't bothered me. Do you have an online account to check the rate being charged at the moment?

I don't know if I have a collar as my account is very old (Abbey National one) and I haven't dug out the T and C's.

MY intelligent finance one was reduced by 0.5 on 2nd November, 2008 down to 5.24% but it finishes next month and we were offered a three year tracker at 1.8% above BOE base rate last month and I knocked it back cause of the fee charged at £1500. I have the illustration still from last month and was going to try to see if I can still sign up to this deal. I doubt it though but worth a try. They have to pass the BOE rate change onto trackers as they are BOE trackers... That would be great, 4.8% but like I say, think I have missed the boat...:mad:

has214

I've just found out that the Halifax has 3% collar rate on its tracker rate mortgages. The BOE base rate is currently at 3% so therefore any further reductions may prompt the Halifax to invoke this. I currently have a tracker with the Halifax which tracks base rate+1.5%. So if the boe base rate falls in December which is very likely they have the option to adjust my margin i.e. increase it which will deny me the benefit of the rate cut or may even increase my overall payment even when the base rate is falling. Can they do this? Why does the government/taxpayer give them these multi billion pound bail outs when they are screwing the very people who are helping them? If any bank should invoke their collars then I want my money back from the bailout which would be approx. 6000 POUNDS!!!! IN OUR CASE. They created this mess not the us. they win no matter what and we loose no matter what.

Markyt

has214 wrote: »

So if the boe base rate falls in December which is very likely they have the option to adjust my margin i.e. increase it which will deny me the benefit of the rate cut or may even increase my overall payment even when the base rate is falling. Can they do this?

Can they do it? What does your mortgage agreement say?

has214

:T please support me to try and stop banks from invoking collars. Libor is the banks problem not the public's fault. If there is enough support in England then the banks won't be able to do this. This will be a new phenomenom for many as rates haven't been this low for ages. NO TO COLLARS, pass on the cut all the way to zero. Would they charge 7% if the base rate was at 10% ,probably not....so don't do this....

has214

unfortunately I think they can, and I also they they will. But we gave them billions so why not help us back a little

has214

December will not be an average 0.5% cut or something, as millions will discover to their dissapointmnet that they won't get any pass on