Nationwide to enforce floor / collar at 2%

TighterThanTwoCoatsOfPain

I'm amazed that any of them have not enforced.. Certainly not a right to waive the terms of peoples mortgage agreements..

There are some trackers out there which were -.25 BELOW base rate... Are you people seriously suggesting that people on these deals should not have the contractual floor / collar applied and the banks should start PAYING mortgagees interest on their debt?

OuterJoin

I am confused, are the nationwide allowed to simply tear up the contract? They did not enforce the 2.75% collar, which was clear stated in my key facts document and now seem to be wanting to enforce a 2% collor which is not in my Key facts. Part of the reason for choosing a tracker mortgage was that it had clear rules on how the rate was set, i.e. BoE Base rate + 0.29%, with a collar set at 2.75%. Now I am at the whim of the Nationwide, they might drop my rate, they might keep it the same, or they might increase it back to 2.75%.

Kez100

OuterJoin wrote: »

I am confused, are the nationwide allowed to simply tear up the contract? They did not enforce the 2.75% collar, which was clear stated in my key facts document and now seem to be wanting to enforce a 2% collor which is not in my Key facts. Part of the reason for choosing a tracker mortgage was that it had clear rules on how the rate was set, i.e. BoE Base rate + 0.29%, with a collar set at 2.75%. Now I am at the whim of the Nationwide, they might drop my rate, they might keep it the same, or they might increase it back to 2.75%.

Yeh, you're being messed around. I'm sure you could enforce the contract in law and force them to collar you at 2.75% . Get a lawyer onto it this minute!

Redbedhead

TighterThanTwoCoatsOfPain wrote: »

I'm amazed that any of them have not enforced.. Certainly not a right to waive the terms of peoples mortgage agreements..

There are some trackers out there which were -.25 BELOW base rate... Are you people seriously suggesting that people on these deals should not have the contractual floor / collar applied and the banks should start PAYING mortgagees interest on their debt?

Part of our mortgage is at 0.66% below base, so we are paying 1.34% at the moment. While that is fantastic for us, I can see it is not really in the interest of the banks. As I said, I signed up knowing there was a 2% floor and would not have complained if it was enforced.

Redbedhead

OuterJoin wrote: »

I am confused, are the nationwide allowed to simply tear up the contract? They did not enforce the 2.75% collar, which was clear stated in my key facts document and now seem to be wanting to enforce a 2% collor which is not in my Key facts. Part of the reason for choosing a tracker mortgage was that it had clear rules on how the rate was set, i.e. BoE Base rate + 0.29%, with a collar set at 2.75%. Now I am at the whim of the Nationwide, they might drop my rate, they might keep it the same, or they might increase it back to 2.75%.

The letter we received from them stated they weren't changing the terms and conditions, just had made a commercial decision to waive the collar for the current time but reserved the right to reinforce it at any point.

Frances63

I don't blame Nationwide at all for enforcing their terms & conditions, there is no reason why they shouldn't and good reason why they should.

However, I took out a Base Rate Tracker mortgage (BoE Base Rate + 0.75) with the Portman Building Society back in 2001. It has now merged with/(been taken over by) the Nationwide. It had no collar in the terms and conditions.

Will Nationwide be honouring the mortgage as I took it?

MrMicawber_2

Frances - Any mortgage you took out with the Portman should be honoured by Nationwide. They have to - the terms and conditions you signed up to are contractual.

Colin_London

OuterJoin wrote: »

I am confused, are the nationwide allowed to simply tear up the contract? They did not enforce the 2.75% collar, which was clear stated in my key facts document and now seem to be wanting to enforce a 2% collor which is not in my Key facts. Part of the reason for choosing a tracker mortgage was that it had clear rules on how the rate was set, i.e. BoE Base rate + 0.29%, with a collar set at 2.75%. Now I am at the whim of the Nationwide, they might drop my rate, they might keep it the same, or they might increase it back to 2.75%.

Well if you really want to insist that they follow the letter of your contract then I'm sure they would be willing to charge you interest at 2.75% instead of 2%.

They haven't changed your contract - they have just decided to gift you 0.75% out of the goodness of their hearts. They didn't have to.

At some stage in the future they could start charging you it again without recourse, but for the meantime don't look the gift horse in the mouth etc.....

Frances63

MrMicawber wrote: »

Frances - Any mortgage you took out with the Portman should be honoured by Nationwide. They have to - the terms and conditions you signed up to are contractual.

That makes me one of the lucky ones then! .....except, I know it sounds daft, but I have a lot of savings as well as the big mortgage. So I can see the problem from both sides. The interest I earn (net) on the bulk of my savings is still considerably less than the interest I pay on my mortgage.

The reason I don't pay off my mortgage is because I have a good one, and would not be able to get it again. I now work part-time (50% contract) and was working full time when I took the mortgage, so my salary has decreased by 50%.

I plan to make my money work for me by buying a second house for cash at auction (when the time is right), unless anyone has a better idea?

DW123_2

I have a tracker mortgage with Natiowide which ends in about 4 weeks and I will then move onto the variable rate. Unless anyone knows of any great mortgage deals I plan to stay on the variable rate for the foreseeable future. I just hope Nationwide don't extend this imposition to variable rates.