Nationwide: No More Rate Cuts

Ian_Griffiths_Halifax

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?
GG

Around 18 years ago there were "Stabilizer Mortgages". You would pay at around 9% if I recall correctly, but would be charged at the SVR of around 13%. The difference would be owed to the lender and would go into a 2nd account. The borrower would be charged interest on this 2nd account as well as the main account. The idea being that when rates dropped, which they did, you would continue paying at 9% and the difference in payment would pay off the 2nd account first.

Not an ideal mortgage but it was a lifesaver for some people.

MrDT

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

Maybe because it's not outside the realm of possibility for that 0.38% above base rate to equate to an effective 12.38% interest rate sometime in the next few years?

BTLNEWbie_3

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.

Wish i had done so over Christmas, would not have put another inch on around my waist.

neas

Seriously anyone complaining their tracker isnt dropping anymore is plain greedy...a 2% interest rate from 5-6% a few months ago is ... a god send for many people. If you need it to drop more.. you obviously overborred..

As 2% interest is very low... in historic terms.

nationwide are protecting their savers ... whom have allowed nationwide to function within the books so to speak throughout the credit crnch.

Im tired of the procteionist culture stepping on the prudent savers to bail out the reckless flat screen filled, new kitchen, new bathroom, new car bunch of over-borrowing ijits which make up a fair proportion of this population.

themanbearpig

If people are crying about nationwide not reducing already low rates further, whats going to happen when inflation kicks in, and interest rates are raised to high levels?
Will they be in the streets looting?

People need to realise they have it good now, and its just the calm before the storm.

mr.broderick

I am on a fix at 5.5% with abbey, their svr is probably cheaper at the moment (frightened of looking) I say to all you on trackers "Good for you, you gambled and at the moment it is paying off" Good on them i say, i wanted to go for a tracker but my wife thought it more prudent to fix.

uzubairu

neas wrote: »

Seriously anyone complaining their tracker isnt dropping anymore is plain greedy...a 2% interest rate from 5-6% a few months ago is ... a god send for many people. If you need it to drop more.. you obviously overborred..

As 2% interest is very low... in historic terms.

A lot of people have lost perspective. They won't happy until interest rates are at 0%.

Kez100

mr.broderick wrote: »

I am on a fix at 5.5% with abbey, their svr is probably cheaper at the moment (frightened of looking) I say to all you on trackers "Good for you, you gambled and at the moment it is paying off" Good on them i say, i wanted to go for a tracker but my wife thought it more prudent to fix.

Over my ten years I could often buy a fix a bit cheaper but wanting to avoid fees and the fact I do like my product (and have said so even when it wasn't the best option) means I have stuck with it.

I think the extreme drops do show how exposed we can be. I've lived with paying 13%+ rates with threats of 15%, so I understand but many don't.

Kez100

My feeling is that this is dire manoeuvres for a dire situation. As soon as real green shoots show things will be different and as this present situation goes to show they can move PDQ if they feel like it.

I am putting my money where my mouth is and overpaying as much as possible as I have no confidence in what is around the corner job wise or rate wise.

Broken_hearted

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.

Those hard working families who couldn't be bothered to read their contract.? Always annoys me, people are happy when they are getting the deal they want, then suddenly it stops going their way and the deals unfair. Funny it was a great deal last year.