Interest rate article in Moneywise mag about trackers

silvercar

If (big if) the FSA found in your favour, the obligation would only be to put you back in the situation you would have been had you not taken the deal.

At that time, fix rates were about 6%, SVRs were higher than trackers; you haven't lost out, you just haven't got a good a deal as you were expecting. Actually even that isn't true; no-one expected the base rate to go so low, so you have got as good a deal as your were expecting, you just haven't got the most amazing deal possible.

No-one can honestly claim that when choosing a BoEBR - 0.25% say, they truely expected to have a pay rate as low as 2.25%.

lisyloo

No-one can honestly claim that when choosing a BoEBR - 0.25% say, they truely expected to have a pay rate as low as 2.25%.

Well actually I think I can.
I chose my tracker in September amongst widespread predictions of very low rates.
I specifically switched from a booked fixed rate (with loss of booking fee).

Fortunately mine doesn't have a collar at all, so I don't think I have this issue.
I'm on +0.49 if it makes any difference.

So you migh be able to say that most people didn't expect it (when they chose years ago) that's not necessarily true for everyone just recently.

Of course I would expect to abide by the terms and conditions I signed up to.

Leon_W

"No-one can honestly claim that when choosing a BoEBR - 0.25% say, they truely expected to have a pay rate as low as 2.25%."

Sorry Silvercar but why not ?

There were many occasions over the last few years where Abbey and Halifax had near identical mortgages and the KFIs pretty much matched word for word because that was the way the FSA prescribed them to be. You would have therefore thought that the mortgages were the same from reading the respective KFIs when, in fact, it turns out they were fundementally different products completely.

If you bought a fixed rate mortgage and somewhere, hidden in the small print was a clause that allowed them to increase the rate at will because they were no longer making any money on the deal you would feel pretty aggreived. I personally feel these sort of clauses are "Key Facts" and should have been included.

Regards