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

has214

anyone out there have a Halifax tracker?

lisyloo

I would be willing to bet good money that there is a clause in their somewhere saying they can vary their terms and conditions.
Notice will be given and penalty fees will be waived during that period.

I am certain everyone has this in their Ts&Cs somewhere even if you have difficulty locating it.
BTW - there may be a reference to their "standard terms and conditions".

I once had Ts&Cs that were 30 pages long.
Have people really read these

drsue_2

Lemoncurd wrote: »

Think it depends on the individual product. We have a base rate tracker and from memory if you took out the 5 year discounted version they imposed a lower limit of around 3%. If you took out the versions with only a 2 or 3 year discount period (we chose the 3 yr) there was no lower limit on the tracker.

We have a 5 year base rate tracker with First active and it won't go below 4%.
After the 5 year period the collar comes off and we pay base + .99% no collar.
Only 18 months to go!

has214

In my Halifax mortgage contract it states that if the boe base rate falls below 3% then they can vary my tracker matgin to my advantage or disadvantage. I'm frightened that if the boe, cuts rates further next month which is more than likely, the Halifax will increase my margin above base which is currently 1.5% to compensate the fall in the rate. It also states that this increased margin will not fall even if the base rate rises again in the future. So if the base rate fall to 1% then I'll be paying 3.5% on top of the base rate. When it climbs back to 5-6% to control ineviatable inflation I could be paying 9.5%!!!!!! as a worse case scenario. They know they can't touch me until the boe cut below 3%.and then I'm at their mercy....Halifax please show me mercy:shocked:

has214

All Halifax borrowers with collar clauses in their contracts...speak out and we can stop this!!!!!!!

has214

be alert, be very alert. The banks are waiting in the wings to pounce on anyone with a mortgage collar, 21 days and counting.....

_Andy_

has214 wrote: »

All Halifax borrowers with collar clauses in their contracts...speak out and we can stop this!!!!!!!

And how would you propose it's stopped?

CashSaver_2

I took out a mortgage with Portman in October 2006. It has now transferred to Nationwide. My current terms are + 0.75% above BoE rate.

However, in the KFI, under General Information, is the following paragraph.

All of our mortgages contain a clause which allows us to vary our Base Rate Tracker Variable Rate

This implies potentially worse terms than having a specific collar of say 2.75% - as it suggests they can set the rate at whatever they choose regardless.

has214

passing on base rate cuts, either lowering SVR's or not invoking collars is like a tax cut to mortgage payers. People on trackers need these collars like a hole in the head, so please, please all banks with collars on their mortgages, don't invoke them or you'll invoke the wrath of the British public. Be nice to your customers as they have lent you billions. The ball is in your court now, so decide wisely and don't rely on the small print to fleece your customers anymore.

cactiphile71

I am on a tracker with Intelligent finance as well.
Apart from the nonsense about collars, i wondered about the date they apply rate changes. It's not just that theres a day because its the following months payment, the letters state that the interest rate change will be applied from that date.
I looked back and for CUTs to the interest rate, its typically 25 -30 days before the new rate takes affect.
BUT for INCREASES to the interest rate, the new rate typically took effect 14 -20 days after the BOE change.
Nice little earner there for the banks.

Also on collars, the last thing I read was that HBOS that owns Halifax and IF were going to pass on the latest December cut to trackers and ignore the 3% collar. Personally I think as this collar think is in the small print and is not in the headline whilst selling the morgage it collars could easily be said to be missold as the advertising was misleading, maybe HBOS have realised this.