Nationwide tracker and I am sure there is no collar

amazingapril

I have two nationwide mortgages - one the original and one when extensive building work was carried out
One - the second, is a tracker and clearly has a collar - it is in the original paperwork and has always been stated on the interest change notifications

the other is a five year tracker ending Mar 10 and has no mention of a collar in the paperwork and no mention of the collar in the interest change letters - because I have both I know what to look for.

Both branch and phone centre say there is a blanket 2.75% base rate collar - but if it's not in the terms how so? Anyone else in a similar situation?
I feel a visit to the branch is on the cards - so they can show me where it says it in the paperwork - or are nationwide not including us with old trackers?

koexelek

amazingapril wrote: »

Both branch and phone centre say there is a blanket 2.75% base rate collar

This is true.

amazingapril

OK-if "this is true" and by this you mean 2.75% blanket collar then should my paperwork not have details of it? It does not.

lisyloo

If you are positive it's not in your papaerwork then you need to take this issue up with Nationwide.

I have no doubt that they will take up their right to vary your terms and conditions giving you the appropraite notice period, however you might get away with a cheaper rate for the duration of the required notice period.
With this in mind then you shoudl consider timing your complaint for maximum effect.

BTW - Are you sure they is no clause in your paperwork that refers to anything like "our standard terms".

If you are correct then you could make a savig but only temporarily as ultimately they can almost certainly vary your Ts&Cs.

amazingapril

Thanks Lisyloo - not that I can see - I am reluctant to start the "fight" until I need to - and ultimately I need another 0.5% drop before I am affected - having two mortgages - one with and one without makes comparison easier - and we keep every bit of info they send - not a sausage about collars! even as recently as the last letter (still waiting the 1.5% letter - but they are consistent with their timing of tletters and rate changes up or down - so I know it will arrive)
At the moment - using the drop to overpay - and if rates go up and it becomes too much - we can always stop the overpayment!

koexelek

amazingapril wrote: »

OK-if "this is true" and by this you mean 2.75% blanket collar then should my paperwork not have details of it? It does not.

I remember reading somewhere that they could impose that, even if it is not stated on their paperwork. Can't remember where, but it was in some financial publication.

Certainly worth trying to contest it though, if there is another cut

gm07709

Hi every everybody i'm new to posting on it this site.

I was wondering if anybody knows if the Alliance and Leicester base rate tracker mortgages have a 'collar'. I took it out just over 2 years ago.

Thanks

needafilip

Hi,
Just been stung in a similar way with a Halifax mortgage tracker that tracks BOE base rate.
There was no mention of a collar in either the KFI or the Offer Letter or from the IFA I used. Plus I did not receive a copy of their full terms and conditions for the mortgage. Buried in the terms and conditions though is a clause that state that in the event that the BOE base rate falls below 3% they may invoke a change to their terms and conditions with respect to the tracker margin i.e. increase it to compensate for base rate fall.
I have already spoke to the FSA to find out what should be contained in a KFI and Offer Letter and the regulation quite clearly states that any Caps or Collars need to be detailed in these documents. I saw someone else's KFI for a Nationwide tracker taken out recently and it clearly stated a 'floor rate' for this product.
You need to read you KFI and offer letter carefully, to see if it refers you within the section detailing rates to their more detailed terms and conditions. Have a look in your terms and conditions and see if you can see any collars.
Now I think I read somewhere that these collars were only introduced in the last 2 years, they must have seen something coming we didn't!
The people at the FSA said that generally speaking if you have been mislead in any way in the sale of the mortgage product you should have good grounds for compensation. In my case when I got the illustrations from my IFA there was a comparable product from the Abbey but the fees were slightly more expensive. If I had know about the collar I would have gone for this product as it has no collar.
The difference between the Nationwide Collar and the Halifax collar is that this is a definate collar and therefore it should have been clearly detailed in your KFI and Mortgage Offer. With Halifax, the sneaky toads, becasue they say we may invoke a collar I think they might get away from having to have had to detail it in these docs. I am going to fight it because this is a deceptive way of luring you into a product and then changing the terms part way through, but then again what can you expect from these ******s.

manikm

gm07709 wrote: »

Hi every everybody i'm new to posting on it this site.

I was wondering if anybody knows if the Alliance and Leicester base rate tracker mortgages have a 'collar'. I took it out just over 2 years ago.

Thanks

ring them and ask!!

needafilip

Lisyloo, interested in your comment:

'I have no doubt that they will take up their right to vary your terms and conditions giving you the appropraite notice period,'

Does this mean that the terms and conditions of any mortgage can in theory be changed with the required notice period? :mad:

So all this worrying about whether your mortgage has a collar or not is academic because they have carte blache to change the terms anyway?

If so what is the notice period they have to give?

Would appreciate the help.

gm07709

manikm wrote: »

ring them and ask!!

I'm in UAE at the minute and it costs £1.70 a minute to call them.

I was just curious