Interest rate article in Moneywise mag about trackers

minimike2

It is very clear. It has a whole page dedicated to explaining it in the mortgage offer that you read and agreed to and accepted when you signed your mortgage deed.....

They made it clear BEFORE you accepted your mortgage that the product had a collar. You cant really say they didnt do thier bit. They havent breached TCF by telling you about it.

Lilyannsdad

It isn't mentioned in the Halifax Mortgage offer I have in front of me.

m1ntie

zarjaz wrote: »

Exactly the same T&C for my Abbey tracker....I think we should get ready to complain!

zarjaz read my post headed - Abbey Flexible Plus Tracker.

Gorgeous_George

Are you suggesting that only the Key Facts, as set out on te KFI, should be enforceable terms and conditions. If so, the KFI will become a huge document.

GG

Lilyannsdad

Not at all Gorgeous George. I am simply saying that something as significant as a minimum interest rate is something that should be bought to a buyers attention within a KFI. Surely it must be considered a Key Fact??!

sebastianj

It is all double dutch to me, I have a flexible mortgage with Abbey and am still paying 5.5% interest, when does this come down. I think I re-mortgaged in 2004 and until 2013 I can take out 32k as long as I keep paying the repayments every month. I think my deal is .5% above the base rate. is this good?.
Any explanation most appreciated.
rgd
seb

JackRS

We're with C&G on the product named 'Exclusive Tracker +0.17% for term Over £50K Remortgage 60% LTV' I seem to remember seeing a minimum rate on a document when we took it out Last year but can't find it on any documents now. Do any of you guys know about the situation for C&G trackers, no doubt similar?

Lilyannsdad

No minimum on C&G deals.

Lilyannsdad

I appreciate I am picking up on an old thread here but thought the doubters among you might like to have a look at the following article. It appears that the FSA may agree with me about collars needing to be included in a KFI.

http://www.citywire.co.uk/personal/-/news/money-property-and-tax/content.aspx?ID=322752&re=4292&ea=160946

Specifically;

"Cap and collar terms in tracker-rate mortgages must be included in the contract and key facts illustration, Pain told lenders. Banks and building societies were creating unfair contracts, which were legally unenforceable, if they did not explain these terms to borrowers, he said. Lenders have been criticised for not making borrowers aware of contract terms which limit how low mortgage rates can track the Bank of England base rate."

silvercar

At the time people took out these trackers (at or near base level), the fixed rates were higher, hence a tracker made sense. Even if you weren't specifically made aware of the collar, you would in all probability have still chosen the tracker with collar had you been told about it, for all the reasons that you went for the tracker.