Nationwide and Halifax seek legal advice over "collars".

Viva_Steve

bargainbarmy wrote: »

I am on Nationwide's BMR of 4.69%. However, I was with Portman and I automatically transferred over to Nationwide when they merged with Portman. Where do I stand regarding this? I don't know what was in my original Portman mortgage clauses but now that I am with Nationwide do I have to accept whatever is their policy? Not fair really if I originally took out my mortgage with Portman.

I also have a Portman tracker mortgage. It did not have a collar, and that is one reason why I specifically chose that mortgage. An answer to a question on the Nationwide website (http://www.nationwide.co.uk/intermediaries/former_portman/questions.htm ) says 'A former Portman mortgage will remain subject to it's existing terms and conditions, including overpayments limits.'.
So Nationwide better not try and force a collar on me, or I'll go mental.

mailmannz

luckyfool wrote: »

Halifax did include details of the collar in their KFI's . . . and then they removed it when the FSA complained that their KFI was too long and complicated so they removed the collar detail. So it's the FSA's fault!

Rubbish, it is Halifax's fault for removing something that turns out to actually be quite important.

Mailman

needafilip

Yes double rubbish!

Halifax were told that if they wanted to impose a collar rate they were within their rights to do so but they must make this explicitly clear within the KFI. The regulation quite clearly describes the wording that should be used to describe a 'floor' rate.
They tried to bury the clause within the small print which is in contravention of the regulation, they have got their fingers burnt yet again! But what can you expect from an organisation run by a shop assistant barely out of puberty and with as much financial acumen as Gordon Brown!

neverdespairgirl

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.

I don't get that at all. Why do they have a moral duty to ensure that people paying very little indeed on their mortgages pay even less?

neverdespairgirl

midflight wrote: »

So... we bail out the banks... to the tune of how many billion?... and in turn they show their eternal gratitude by refusing to track our mortgage deals below a certain % ??? That's nice. Will the government allow this to happen?

Why not?

At the moment, tracker customers are definintely among the fortunate few when it comes to borrowing. I fail to see why the banks have any sort of duty to make that even more fortunate. They'd be better off looking at rates for people on SVRs, Libor mortgages, or even (perish the thought) savers.

hearts

I have 3 Trackers with BOS. They are from January 1.75 2.49 and 2.49. Same group as Halifax so I would have thought same or similar conditions.
In case anyone thinks I'm crowing, I also have highish fixes that balance it out. ;-)

DavidRossitter

Hi

On a slightly different tack I have a discounted variable rate with the Cambridge at 1.45% below their SVR. So when rates came down I went to see if there was any clause that would stop them lowering their SVR in a sensible way. To my delight I found no such clause but one that said that the SVR has to be no more than 2% above BOE rate (within 1 month of the BOE decision) - so effectively I have a tracker with +0.55% and no collar. I had read the T&Cs several times; plus the product details in the offer and it is quite clear on this and no stated downside as to how far down they go. I can only assume that they had no expectation rates would go the way they have.

So far this has been born out by CBS reducing their rates within a month and to within 0.01% of the BOE + 2% so it looks good. I am just waiting for something to come out of the woodwork if UK rates go the way of the US - if this happens I will be paying less than 1% which cant be bad!

Anyone any similar experiences/understanding of the CBS. Seems too good to be true ?!

Thanks, David

midflight

neverdespairgirl = I don't get that at all. Why do they [the banks] have a moral duty to ensure that people paying very little indeed on their mortgages pay even less?

Yes, as those people took a risk & signed up for TRACKER mortgages.

Are you saying if rates had gone up, up, UP (as some nutters were suggesting) then the bank's "moral duty" would have kicked in and said "don't worry folks, we won't be tracking those sky high BoE rates, even though you signed up to do so, as we only have your best interests at heart. Oh, and whilst we're at it, we'll be hiking saving interest rates with immediate effect, as we always do when BoE rates go up..." (yeah, right!)

GET REAL!!! (I can only assume you're not on a tracker at the moment?)

The banks have screwed us for too long. It's nice to see the tables turned for a change.

Try reading this book...

http://www.amazon.co.uk/Three-Important-Lessons-Taught-MoneySavingExpert-Com/dp/0091923840/ref=sr_1_2?ie=UTF8&s=books&qid=1231408595&sr=8-2


p.s. You clearly find the idea of banks having a "moral duty" a laughable idea, and whilst I would agree that they certainly don't, I think it would be better for EVERYONE if they did...

That last thing we need is people like you squealing "Oi! Look at those people paying hardly any interest on their tracker mortgages. It's got to stop NOW!"

luckyfool

midflight wrote: »

Yes, as those people took a risk & signed up for TRACKER mortgages.

If they signed up for a tracker mortgage with Nationwide, then they got KFI's and mortgage offers with notification of the 2.75% collar plastered all over them. If there was no collar laid out clearly in the KFI (as with Halifax), then tracker customers should benefit from rate cuts as per their contracts.

I'm not sure I get your point here though.

timmo44

Call me daft but I'm on a 0.74% above base tracker with Nationwide. I was already delighted with my interest rate when I was paying 3.74% a couple of months ago. Then when Nationwide agreed to waive the 2.75% collar/floor for the last base rate cut (to 2%) cut I am even more delighted to now be paying only 2.74% interest.

The fact that they aren't going to put them down even further does not bother me in the slightest because we've, quite literally, never had it so good. I kinda think demanding any more would be greedy.