Tracker mortgage rates might not drop. Fight back against restrictive 'collars'.

MSE_Martin

I've added some extra details re the nationwides tracker suspension to the first post.

payless

does read right now

fortnight both Halifax has abolished

also do you have a press release to confirm Halifax have abolished - I was told yesterday it was still there , just not enforced

matimage

I have the Earl Shilton tracker.
I am slightly confused because it Martins table in post 1 it says the minimum rateis 4%. My tracker is at +0.19% so currently my rate is 3.19% (until last thursday of course)?
Been through the paperwork and it seems I have a 3% collar

curriej99

Just phoned Abbey up and the automated answer said that their decision regarding trackers will be announced on 18th December and be effective from 1st January. Those cheeky little bankers must be rubbing their hands with glee as they effectively score a 1% rate increase on all trackers for a month.
Why don't we all just sack these mortgages and buy big flash motorhomes with all mod cons and go off and live in a field and borrow sugar off each other?

BEX94MAT97

Took out a 3 year fixed rate in 2005 with Alliance and Leicester at 4.24% which converts to base rate plus 0.75% for the term of the mortgage. Cannot find anything in either the Key Facts or Terms and Conditions to say there is going to be a collar.

I've just received a letter confirming my new January monthly payment based upon the 1.5% BoE reduction. I am expecting a letter soon that confirms my new rate for January will actually be 2.75%.

Could never have expected rates would go this low when I took the mortgage out three years ago. Guess I was lucky to have got a competitive 3 year deal and then drop onto an extremely good tracker deal for the life of my mortgage.

A*D_2

Hi, we've currently got a mortgage offer from Nationwide, but we haven't closed it yet (scheduled to close on 2nd Jan, if they don't pull it completely like Lloyds did). The offer documentation does make reference to the 2.75% minimum rate, but not sure if this means it will apply now they have removed this restriction for "some tracker customers".

Sarny

Hi,

I have just signed with HSBc's 0.99% above deal, does this have a collar?

Winchweight1066

Took out mortgage in 2001 fixed rate then 0.85% above for ten years. Called A&L last week when hadn't had notification of last cut, told they were behind on paperwork, but last cut (1.5%) & latest had been applied. Asked about any restrictions on how low it could go as couldn't find any mention in any of my paperwork, told no collars. :j

jamo76

Having read the post by curriej99, I was concerned as I have a tracker with Abbey. I also called Abbey. The recorded message seems to have changed since this morning.

The actual information on the recording now, is that:

Mortgages that track the base rate of the Bank of England will go down in line with the government drop of 1% from 3rd of next month (January 2009). They will write to customers shortly confirming the new rate.

It has not yet been decided how the interest rate reduction will affect mortgages on the standard variable rate. This decision will be announced on the 18th of Dec 2008.

So this recorded message is good news for customers with trackers.

sanderc

Mortgages that track the base rate of the Bank of England will go down in line with the government drop of 1% from 3rd of next month (January 2009). They will write to customers shortly confirming the new rate.

:T

Fantastic, just saved me a whole heap of digging! Just a shame that they only take it form the 3rd of the month. However, it says 3rd of the month in the offer and key facts but in the terms and conditions book, it says form the time that the BoE change the base rate. So which do they have to go by, the TaC or the key facts???? anyone know?