Nationwide: No More Rate Cuts

amcluesent

Nationwide Building Society will not pass on any further interest rate cuts to the majority of its tracker mortgage customers.

The lender plans to invoke a clause in the deals enabling it to stop reducing the loans in line with cuts to the Bank of England base rate once official interest rates fall below 2%.

They should be MADE to pass on the rate cuts to hard-working families.

kaflinkle

I didn't think Nationwide borrowed/stole any tax payers money? I thought it was only RBS and Lloyds although I've known to be wrong (many times...)

The news doesn't suprose me though.

shaven-monkey

Nope, nationwide weren't recipients of any taxpayer cash.

http://www.guardian.co.uk/business/2008/oct/13/banking-banks

Nationwide is also not turning to the government for help. Britain's biggest building society insisted today that is has no need for additional funds, but has agreed to support the government's plan by raising £500m in fresh capital.
"This is a prudent step which reflects unprecedented market conditions," said Nationwide, adding that it would raise this additional capital "through normal market channels between now and our financial year end."

Kez100

Nationwide had a clear collar in their mortgage agreements. They should not be made to drop if they don't want to.

Before quoting FACT make sure it is

[Deleted User]

I wonder if they'll carry on dropping the SVR (currently 4%) since there's no official cap on it

mvengemvenge

amcluesent wrote: »

FACT: Nationwide quietly gobbled up £££ millions in taxpayers money when the banks where bailed out. They should be MADE to pass on the rate cuts or return our money.

The argument that's given is that the money from the taxpayer was to just stop the banks actually collapsing and creating unrest. I think the banks will want more off the government before they actually lend any.

Before they throw more and more good money after bad, though, the government may as well bite the bullet and Nationalise them until such a time that they are profitable enough (if ever).

chayam

A BI OF A CHEEK ON NATIONWIDES PART we paid a high fee to have this set up as a tracker mortgage they carried on incresing when rates were high but are stopping when rates are cut, i though that the whole point of a tracker is to follow BOE rates, pls let me know if I am wrong
:mad:
surely this should not be allowed????

nickj_2

i believe nationwide are doing this to give their savers a better deal , after all , why should people who have been prudent and have saved and lived within their means be punished so that people who haven't pain is eased

[Deleted User]

Your tracker has always had a collar. it was part of the contract. deal with it

kaflinkle

I also heard read that they passed on a rate cut they didn't have to. I have always found Nationwide to be quite fair.

The bottom limit on tracker mortgages was supposed to kick in at 2.75%, but the lender passed on December's 1% rate cut in full.

ILW

chayam wrote: »

A BI OF A CHEEK ON NATIONWIDES PART we paid a high fee to have this set up as a tracker mortgage they carried on incresing when rates were high but are stopping when rates are cut, i though that the whole point of a tracker is to follow BOE rates, pls let me know if I am wrong
:mad:
surely this should not be allowed????

I think you will will find that you agreed to the collar when you took out the mortgage. Why sould it not be enforced?