Nationwide to enforce floor / collar at 2%

flyingbanana_2

MrMicawber wrote: »

Why should the banks and building societies remove / waive the floors? I can't understand why people expect this as almost some kind of human right. All those on trackers signed up to them.

Sorry if I'm sounding unsympathetic but we just can't expect to have our cake and eat it.

Is there a collar on the highest they can set rates? I am guessing there probably isnt!!!!

lisyloo

Is there a collar on the highest they can set rates? I am guessing there probably isnt!!!!

If you have one of their mortgages I would suggest reading it rather than guessing.

But otherwise I suspect there is no highest level for their costs but there is a minimum to the costs involved.

flyingbanana_2

lisyloo wrote: »

If you have one of their mortgages I would suggest reading it rather than guessing.

But otherwise I suspect there is no highest level for their costs but there is a minimum to the costs involved.

of course there isnt! I was trying to be drole! Of course they are going to have a collar on how low rates can go and not on how high they can go to. Afterall, they are only going to care when rates are low and they arent making much money of us.

I am sure if interest rates were 8% and the BoE increased rates to 9.5% then they wouldnt hesitate to add 1.5% onto trackers and SVR!

wife-spent-it-all

Ian_Griffiths_Halifax wrote: »

The KFI was introduced for a good reason and that was to provide the customer with the Key Facts and be clear in doing so. This is what you base your judgement on as to whether or not you will take out the mortgage and it protects you as well as the Lender. It is there for clarity and do away with all of what was known in the past as 'the small print'.

hi all. First post so be kind

I have moved my two mortgages from a NW fixed rate to a NW tracker in August 2008. At the same time I took out some additional borrowing also on the same tracker product. The KFI document for the two existing mortgages do not mention anything about a 2.75% collar, but having just checked the small print in the T&C's it is mentioned there. The KFI document for the third additional mortgage does mention the collar and it’s restated in the T&C's.

The KFI without the collar was printed and given to me at the time by the advisor in my local branch. The other KFI for the additional borrowing was printed by someone in the Northampton office and posted out to me along with the documents I had to sign.

Given that the KFI for two of my mortgages didn’t state anything about a collar, is this condition actually enforceable?

Ian

feisty1

flyingbanana wrote: »

of course there isnt! I was trying to be drole! Of course they are going to have a collar on how low rates can go and not on how high they can go to. Afterall, they are only going to care when rates are low and they arent making much money of us. I am sure if interest rates were 8% and the BoE increased rates to 9.5% then they wouldnt hesitate to add 1.5% onto trackers and SVR!

flyingbanana: For yr information mortgages are available which are capped and collared, when capped they do not go above a certain rate.

Ian_Griffiths_Halifax

wife-spent-it-all wrote: »

hi all. First post so be kind

I have moved my two mortgages from a NW fixed rate to a NW tracker in August 2008. At the same time I took out some additional borrowing also on the same tracker product. The KFI document for the two existing mortgages do not mention anything about a 2.75% collar, but having just checked the small print in the T&C's it is mentioned there. The KFI document for the third additional mortgage does mention the collar and it’s restated in the T&C's.

The KFI without the collar was printed and given to me at the time by the advisor in my local branch. The other KFI for the additional borrowing was printed by someone in the Northampton office and posted out to me along with the documents I had to sign.

Given that the KFI for two of my mortgages didn’t state anything about a collar, is this condition actually enforceable?

Ian

The collar is enforceable for the 3rd additional mortgage, but not on the others.

mattwallisuk

I recently (4 months ago) took a tracker with HSBC at 0.79% above BoE base rate. I have looked through all my docs and cannot for the life of me find any mention of any floor they may impose.

Does this mean I will always track, or do they have any right to impose a floor anyway? Anyone else recently took an HSBC BoE tracker and know if the floor clause exists?

Since accepting our mortgage im saving £650 a month with these rate drops

mattwallisuk

Sorry just searched and found the other thread which clearly states HSBC does not have a floor/collar on BoE tracker rates. Good to know!

payless

But ....

HSBC- Though it doesn't impose a collar, it reserves the right to stop passing on cuts if there is 'material' change in the UK's mortgage market. 'For this week's rate cut, we're not going to show any desire to get to this; but if base rate gets to 1.5 per cent, then we would.'

not saying they can or will , just posting what been said

mattwallisuk

Yea I read that bit too.... but I guess if they collared at say 1.5%.... that puts me on 2.29% and I should still keep a smile on my face!!!