For Halifax Tracker Customers

djm1972

Hi scoutie,

T&C's are contractually fixed per mortgage rather than per lender; so it would be whatever is described in your specific offer. There are quite a few people who have identified that they have no floor rate on their tracker; yet more recent borrowers with the same lender and similar mortgage type do have a floor rate.

In general, search for a clause that describes what happens if the BoE base rate ceases to exist (this must be covered by all tracker mortgage T&C) as this is the same section in which you would find details of a floor rate if one exists.

For the definitive answer of course contact customer services who should be able to tell you the details for your specific deal.

udydudy

I would expect the Interest rates to stay low(below 3) for atleast the next 12-18 months and most trackers(the low tracker margins & -ve margins to BoE) were stopped atleast 6-9 months back. so all 2 year trackers would be out of the tracker period and on to SVRs or remortgaged. I would expect only 5-10% or so who took 3 year trackers would really be seeing the rise in interest rates back above 3% and would be affected by the disadvantage of changed margins that also maybe for the final few months.

I myself am on a -ve tracker but fortunately my lender does not have a collar, but am relooking at the terms and conditions to see what other clauses are there for them to introduce it or change the margin on BoE!!

Lets hope lenders act responsibly aka J P Morgan wherein ther are renegotiating mortgages to help out distressed borrowers.

meaniegreenie

hi i am calling my bank today to receive no reply i am not well equipped to understand all paperwork but have mortgage of £41.433.45 and the tracker of 0.55% above BOE rate and i noticed my mortgage is less from last month i am not from uk and still not feeling confident to call Intelligent finance to ask please can anyone let me know how less i will pay it was £304-75 this month and i am very much in debt, thank you for any replies in anticipation
Katya x

scoutie

Thanks DJM, have spoken to IF and they confirm there is no collar. Found out it goes to BOE +0.62 for lifetime in a year which is nice. Interestingly they say that they have no provision if BOE goes to 0% for negative trackers and in the unlikely event would have to consider what to do then! Very unlikely I know but you would have thought there was something there.

lwrighty

I spoke to my FA today who has in turn spoken to a rep from Halifax.

To cut a long story short if the BOE rate goes below 3% then Halifax can do what ever they want. They did say the big cut in rates was not expected.
There have been lots of customers calling about this.
My FA did say that he didn't expect Halifax to change the tracker margin but they might not pass on any other cuts below 3%. However If they do increase the margin then remember you do have 3 months to move your mortgage to another lender without penalty.

I guess people power will be required if they do something silly.

Fingers crossed we get no more cuts.

RichardCag

Just got my letter and im now on 2.84% (BOE -0.16%)

Waiting for next month to see if the rate drops again, and what they will do then!!

minimike2

Still waiting for my letter and I have had no "official" response from Halifax. I have had the "unofficial" response, which was that the alteration of the margin is only "something that we could potentially look at doing" as I was told, however this is of no comfort to me as an official response. At the end of the day the condition is there and so they are well within thier rights to use it, but what I want to know is to what extent they could alter margins by and if it would be a uniform change across the board....i.e +.5 to everyone, or would it be dependant on what the original margin was, i.e +.5 to people on existing + margins and +1.0 on people on existing - margins.

Sorry I haven't got anything more official, I will keep pushing for something.

minimike2

Well I have mad my letter today.......I have tracked fully at my - margin.....still no official response from Halifax im afraid, so will just have to wait and see what happens.....I will keep pushing for answers tho!

JayZed

They're not going to do anything rash that provokes a public backlash - they've enough on their plate with the merger. My best guess is that they
won't pass on any base rate cuts below 3%, but won't do anything more drastic than that (in other words, once rates start rising back above 3%, everyone will be back on their original margin).

lwrighty

Big day tomorrow.. Lets hope halifax do pass on any savings to their existing tracker deals.....