Nationwide and Halifax seek legal advice over "collars".

koexelek

has214 wrote: »

The banks have a moral duty not to impose these collars on hard up mortgage payers, whether theyr'e legally enforcable or not as the blame for this crisis partially lies at their doorstep. If they decide otherwise then at least go 50/50 with mortgage payers.

When has a bank ever cared about morals ? :rotfl:

brixham

AHAR wrote: »

That 3.09% minimum includes your offset.
2.75% + 0.34% = 3.09%

Ahhh got it now........sorry bit thick today !

has214

bad morals=negative press=negative public sentiment towards them=pressure from public on government to act=no more dosh from taxpayer=upset bank.....it was just a thought

has214

I think they have to care in this economic climate...

edgex

Do the collars work both ways?

Joe_Bloggs

The colllar was meant to describe the lower limit of an interest rate.The cap is a term to described to a clamp on the the upper rate. Perhaps these are items of school uniform.
J_B. You can wear your tie around your waist or on your head. So much for half baked thoughts.

TighterThanTwoCoatsOfPain

Sorry, but i'm amazed!

Just playing devils advocate but......

How are the banks enforcing a term of the contract people signed up to doing anything wrong? This smacks of the revolt against bank charges (which incidentally irritates the crap out of me!)

Remember the banks didnt borrow the funds from the BOE so the rate is not overly relevant. The banks would probably lose money and we dont want another NR do we?

Come on guys, surely you signed to say you accepted the deal???

has214

The instrument of lowering rates may become obsolete soon as I don't know who will benefit from a rate cut apart from the banks themselves and a few quiet ones who don't have a collar on their trackers. I hope similar pressure is applied on the banks this month as was last month in order to insure lower SVR's are deliverd fully and promptly.

If most of the mortgage market consists of borrower's on SVR's, fixed rate products and trackers, then how effective can a base rate cut be if the banks decide not to play ball?

Kez100

has214 wrote: »

The instrument of lowering rates may become obsolete soon as I don't know who will benefit from a rate cut apart from the banks themselves and a few quiet ones who don't have a collar on their trackers. I hope similar pressure is applied on the banks this month as was last month in order to insure lower SVR's are deliverd fully and promptly.

If most of the mortgage market consists of borrower's on SVR's, fixed rate products and trackers, then how effective can a base rate cut be if the banks decide not to play ball?

You are only thinking of homes. Many business loans and overdrafts work on BOE base rate plus bank margin.

Stormy

Hmmm this is interesting, I took out a Nationwide tracker in October via the online system provided for existing Nationwide customers, my tracker does not kick in until 01/01/09. I didn't get a KFI to print or anything displayed, all I could print was the confirmation I had moved to the new tracker which is base rate +0.64% (telling me my account number would not change, my rate would be 5.64% and if any rate changes happened I would be informed before the product started.

I do remember reading about the collar of 2.75+offset on the actual Nationwide website. I wonder where I stand, I was never sent a new KFI or new terms and conditions.

Hmmmmm..