Nationwide: No More Rate Cuts

Gorgeous_George

I think HMG should investigate 'mortgage-rate-smoothing'.

For example, make all mortgage payers pay 6% (or another amount). Any excess when base rates are lower gets added to the slush fund and is drawn upon when base rates rise. There'll be flaws I'm sure but will they be any bigger than te flaws in the current system?

People on trackers are not greedy for wanting their mortgages to track. If rates had risen they would take all of the pain. With rates falling they expect all of the gain. It is the lenders (without collars) who failed to identify the risk of falling rates. Those with collars should be allowed to invoke them as these collars were priced into the product.

GG

stevetodd

amcluesent wrote: »

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.

Just about everyone else has said it already so it doesn't need saying again that they should check their mortgage terms and conditions.

I did, but was amazed to later receive a letter from the Scarborough Building Society stating my mortgage payments would not fall below 3%! Why you ask, because not only does it state in the terms and conditions that the interest floor is 0.5% (+the 0.38% increment of the tracker) but it also states what the payment would be if interest rates fell to that level, (which at the time of taking out the mortgage I would have said no chance, but not now).

I immediately rang them and their initial reaction was that I appear to be correct that they have made an error but they would get back to me after the holidays.

uzubairu

chayam wrote: »

thxs to all for your mixed some quite blunt replies
yes I do have a collar of 2.75 and have been on a tracker fr 2+ yrs and therefore have also previously paid a higher rate and also paid a high arrangement fee for this so all in all in a way im getting my money back
I was wise and chose a tracker and didnt opt for fixed but you make your own choices when taking out a deal

I suppose in your wisdom, you failed to read the small print of the contract you entered in to with the Nationwide and could forsee the global economy going down the toilets with interest rates at an all time low.

Some people want jam on both sides! :rolleyes:

PayDay

Gorgeous_George wrote: »

My mortgages are currently 2.89% and 2.74% - neither have collars and are not with Nationwide (NatWest BTL and Britannia respectively). I'd be happy to stick at that or, possibly, a little higher however, I'd want something in return. If my lender offered to cap my tracker at 6% or paid me to buy a collar, I'd accept a collar at 2%. At the very least this would buy the bank more time but they should not have exposed themselves to this risk in the first place.

GG

The banks will wait until the rates start to go back up again. Those on trackers will then be rushing to get off their trackers and onto a fixed rate.

leveller2911

Gorgeous_George wrote: »

It's the savers' fault for saving with banks that took unsustainable risks with their money.

Forget savers for a moment, what about the taxpayer. Without taxpayers' cash there'd be no savings left. It is, after all, savers who were bailed out. Borrowers would still owe the same whereas savers could have lost £££s if banks had been allowed to collapse.

"forget savers for a moment" (thats been the problem)

"without taxpayers cash thered be no savings left" (we do pay tax)

"It is after all savers who were bailed out" (nationwide saver,so how?)

Oh pardon me for saving money,dirty,filthy,underclass arent we?, I save with the nationwide,why should I as a saver bail out greedy,!!!!wits who overextended themselves because they wanted bigger,better houses,cars,boats ,2nd home etc......

When I saved my money I hoped Id get some reward (decent rate) for being honest..

Am I no better than someone who has a 125% mortgage, self cert, interest only, who has £50k of un secured debt.....To say that borrowers would still owe the money is fina all the time they can pay it back.....

I feel dirty now, get the impression us savers are 1 up from MP,s and estate agents, im off for a bath, but I guess theres some things you just can clean off.......

MRSTITTLEMOUSE

Cat695 wrote: »

Hence why I will be fixing for as long as possible and overpay as much as I can.....

We took a 10 year fix last year and I'm very happy with it.We could be saving a fortune if we were on a tracker but I don't want to take the risk.
We're safe in the knowledge that we'll be able to pay our mortgage no matter what rates do.That's what matters to us,security and to be honest I'm only too happy to be paying my fixed rate and when rates rise I won't be affected.
I remember the 15% rates and how people suffered,I don't intend that to happen to us.

Geenie

Well done Nationwide.:T Savers outnumber borrowers by seven to one across the country and by 10m to 1.4m at Nationwide. To borrow such large sums of money at such a meagre interest charge, as those on trackers are getting at present from them is fantastic, so stop moaning and be grateful.

uzubairu

MRSTITTLEMOUSE wrote: »

We took a 10 year fix last year and I'm very happy with it.We could be saving a fortune if we were on a tracker but I don't want to take the risk.
We're safe in the knowledge that we'll be able to pay our mortgage no matter what rates do.That's what matters to us,security

Same here.

We've been overpaying for the last 2 years (nearly £11K) and we hope to have paid it all off by the end of the fixed rate in 2016.

The current remaining term is 13 years, on a 25 year mortgage we took out in 2006.

As a saver too, I've seen the rates on my savings accounts plummet, so it is good to see that Nationwide is thinking about savers.

stevetodd

PayDay wrote: »

The banks will wait until the rates start to go back up again. Those on trackers will then be rushing to get off their trackers and onto a fixed rate.

No way will I leave my trackers! are you mad? why would I leave a product that offers only 0.38% above base rate for the life of the loan ie for 25 years

Simons-Photography

I'm a saver with nationewide, infact winthin my family we have a decent sum in there as it is we've seen our money totally devalauted by inflation are now going to be asked for it to devaluate further. people should understand how banks work at least nationewide are not screwing people like the banks, at present they offer the best interest rate on savings I beleive and guess what if I don't put my money in there YOU won't have any to borrow, I'm not the bank of england if I were to get 0 % for my money i would take it elsewhere as it is we cautious savers have lost 3 % in interest cuts to try and baile our people in trouble.