Nationwide: No More Rate Cuts

dreamylittledream

And HBoS of course.

Nationwide didn't take anything from the gov bailout

AHAR

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????

If your mortgage deal includes a collar, the rate doesn't have to keep tracking below a certain level. My Nationwide tracker has a 2.75% collar but they've allowed the rate to drop by 0.75% more than they had to. I'm not complaining that I'm currently getting a better deal than I signed up for.

feisty1

Just because bank of England rates have dropped doesn't necessarily mean that Natgionwide are buying their money at that BoE base rate. We have seen the consequences of lending too much money at too low a rate. As of yet, Nationwide have not been "bailed out". Are you seriously suggesting that Nationwide should continue to lend in a reckless way by making losses that will require even bigger taxpayer bailouts? Cutting rates further to make a loss would be a pretty reckess action for any lender to take.

MRSTITTLEMOUSE

nickj wrote: »

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

Is'nt it always the case though.
Truth is they have to make money.
Problem is,if you have a collar in a contract and you agree and sign you can't expect to change it when it's of benefit to you.If they did that to you then there'd be an outcry.
Let's face it people on fixed rate mortgages can't gain from the lower rates and I can't see anyone considering lifting the conditions of their contracts either.
After all it's business and if you signed up for it knowingly,it's fair.
We can't have it both ways.

Kez100

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????

What did you sign and agree to when you took out the mortgage?

Kez100

mvengemvenge wrote: »

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).

Nationwide never had any money.

MiserlyMartin

Some strange comments on this thread. Anyway, it is right that Nationwide will not pass on any more rate cuts. They are not obliged to pass on any rate cut,, 'collar' or not, despite what the government may 'demand'. They are simply being sensible and lending prudently. Savers need to be protected too, if rates fall to near zero depositors will take their money offshore and then there will be even less money to lend on mortgages.

It makes me sick that the prudent sensible people living within their means are expected to pay for the greedy and reckless idiots that caused this downturn.

RobertoMoir

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????

Only you know if you're wrong and if it "should not be allowed?????". You signed your mortgage contract, none of the random interweb strangers here did it for you, I hope. Did you not read it first? If it says they can do this then they can. It's simply part of your contract.

If your contract doesn't say they can do this then by all means I hope you nail the bar-stewards to the wall and I'll be happy to hand you nails and hold the spare hammer for you.

MiserlyMartin

Whats his rate now 3% or less? Still not happy? At least you got a tracker you are lucky not to be on a fixed rate at 7% and all the good tracker deals have been pulled. Think yourself lucky.

drbeat

chayam wrote: »

surely this should not be allowed????

Well they lent at x7 a salary...that shouldn't have been allowed!