Nationwide: No More Rate Cuts

Kez100

Gorgeous_George wrote: »

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

My greed post was in direct answer to those who want Nationwide to keep tracking despite having a 2.75 collar. Of course people with no collars are not greedy. That was the product they signed up for.

Kez100

Simons-Photography wrote: »

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.

How have you seen it 'completely devalued' by inflation. Inflation has been low for a very long time. We have had a temporary blip in recent months but not for long.

clobber_2

stevetodd wrote: »

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

Err perhaps because in order to pay for all the bank bailouts, interest rates are going to hit the roof?

Kez100

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.

I've had my lifetime tracker for 10 years now. No more fees, no overpayment charges, flexible offset, and +0.69 above base. I'm going nowhere.

uzubairu

stevetodd wrote: »

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

All the more reason to make hay while the sun shines and overpay and get rid of it in less time..

I expect to be mortgage free in 7.5 years time.

Kez100

Same here. 7 years to run. Hoping to clear it in far less.

mr.broderick

MiserlyMartin wrote: »

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.

Am I a greedy and reckless idiot martin? I bought a house in 2007 and mortgaged some of it?

mewbie_2

mr.broderick wrote: »

Am I a greedy and reckless idiot martin? I bought a house in 2007 and mortgaged some of it?

Lol. And you thought you were just buying a home for wife and family to live in. You reckless madman you. It's all your fault.

mvengemvenge

mewbie wrote: »

Lol. And you thought you were just buying a home for wife and family to live in. You reckless madman you. It's all your fault.

Bear with me here......I'm new and I'm catching-up......are you MiserlyMartin too???

BTLNEWbie_3

mvengemvenge wrote: »

Bear with me here......I'm new and I'm catching-up......are you MiserlyMartin too???

Broders where do you get time making up all these names?