HSBC Tracker Rate floor - is it 3% or not???

StrawberryJam_2

freckles25nw wrote: »

"Thank you for your recent enquiry regarding your Tracker rate mortgage. I can confirm that your Tracker mortgage will adjust in line with the Bank of England base rate cuts within 24 hours. I can also confirm there is no "floor" to our Tracker mortgage."

Was there any mention in the letter of potential of a collar pending 'if there is a material change in the mortgage market'

where can i find this material change clause in my T&Cs? I have looked at all my HSBC literature and simply can not find it anywhere/ also reading the thismoney link above
"Forecasters are now saying the base rate could fall to as low as 1.5% or even 1% next year as the authorities desperately try to kick-start the economy."
but we have comments as such

maveli wrote: »

A spokesman for HSBC said: 'If we get rates below 2% we may be in the position where we have to invoke a collar, but we're not there yet. Everyone with a tracker product must be feeling pretty pleased with themselves anyway

to me, it just adds uncertainty. I think I will write to HSBC as I need to know whether there is no limit or there will be limit!

StrawberryJam_2

StrawberryJam wrote: »

it just adds uncertainty.

+

maveli wrote: »

http://www.thisismoney.co.uk/mortgages/article.html?in_article_id=456704&in_page_id=8&ct=5

"HSBC was one of the big lenders to resist pressure from the Government to pass on the full 1.5 percentage point cut by the Bank of England when rates fell in November. It eventually passed on a 1 percentage point reduction."

Heyman_2

Jonbvn wrote: »

I hope this answers your questions.
http://www.timesonline.co.uk/tol/money/property_and_mortgages/article5286992.ece

You decide?

I would question the MO of the OP?

Thanks for that. My OP is from last month (not sure if people here realise)

MO?

Modus Operandi? Main Objective? Mental Obfuscation?

StrawberryJam_2

Heyman wrote: »

My OP is from last month (not sure if people here realise)

applicable today and for many tomorrows to come.

I found this quote letter from HSBC on another forum
"We do not currently have a specific lower limit for our existing tracker products. We currently have no plans to introduce such a limit for those existing products, although our Terms and Conditions do allow us to vary the terms applicable to our products in certain situations. In the event that we ever did seek to vary our Terms and Conditions to provide for such a minimum we would give our customers at least 90 days' notice."
ref: http://boards.fool.co.uk/Message.asp?mid=11310657&sort=postdate

I am preparing myself for the day HSBC decide to do a RBS on the rates :mad:

Heyman_2

StrawberryJam wrote: »

applicable today and for many tomorrows to come.

True I guess

HSBC's response that you posted is interesting, wonder how long the Tracker party will last before they hose everyone down with some new T&Cs!!! :eek: