Nationwide "Collar" Clause

sniperpenguin

Is anyone else going to be hit with Nationwide's stupid "collar" clause as mentioned on Sky News?

Essentially, if the rate drops any further than current then we are going to see absolutely NO benefit whatsoever! Cheating bar stewards, I bet they dont have a upper limit! :mad: :mad: :mad:

Woby_Tide

I bet they read their terms and conditions better than you did mind

feisty1

[quote=sniperpenguin;17405641]I bet they dont have a upper limit! :mad: :mad: :mad:[/quote]

If it was a cap & collar mortgage, yes it would have an upper limit.....

garibaldi8

the collar is mentioned, in small print, in my contract, but was not mentioned in the Key Facts document I was sent. I understand the FSA have said that a collar might not be enforceable if not highlighted in the KFI, so I'd like to challenge Nationwide on this.

I know most people are saying that the collar is mentioned in Nationwide's KFI, but it definitely is not in mine. Is anyone else in the same position?

garibaldi8

I contacted Nationwide to tell them that there was no mention of the collar in my KFI (although it is mentioned in the contract), and they agree that this was a mistake on their part, and will not be enforcing the collar! I will get a reduction in February.

Worth checking your KFI if you are a nationwide customer?

MarkyMarkD

sniperpenguin wrote: »

Is anyone else going to be hit with Nationwide's stupid "collar" clause as mentioned on Sky News?

Essentially, if the rate drops any further than current then we are going to see absolutely NO benefit whatsoever! Cheating bar stewards, I bet they dont have a upper limit! :mad: :mad: :mad:

Think about it, sniperpenguin, rather than ranting.

Can Nationwide pay negative rates of interest on their savings accounts?

No.

Hence they cannot reduce mortgage rates down to 0% either.

Lenders who do NOT have collars in place are losing a lot of money on tracker mortgages. Those which DO have collars in place are just going to bump along on a minimal level of profit.

There's nothing thieving or immoral about a collar.

Don't blame them just because you didn't read your KFI before agreeing to take the mortgage. Many other lenders would have given you a collar-free tracker - but you chose Nationwide.

GeorgeL

It would appear Nationwide have lowered my rate again next month. I can't find any announcement of them lowering their collar anywhere though. Has anyone else recieve a letter dated 18th Jan?

grazer

Yes - there is another thread on this subject, search on 'Nationwide Collar Mistake'

Whether its a mistake or not - we don't know yet. But when I search the web or look at their site, it claims that 2% is the new (and temporary) collar. However, according to my letter, I'll be about 1.67% as my new rate, cutting another £33 off my monthly payment.

I'm dreading the letter coming in saying its all a mistake.

bclark

I haven't had this latest letter saying that the collar is yet again not going to be enforced. The last one that I got was saying that the collar would remain at 2%. :mad:

MarkyMarkD

grazer

Did your mortgage start out as a Portman mortgage, or another society that Nationwide has acquired?

Could that be why the collar doesn't apply to your account?

Have you actually checked your own KFI to see whether it refers to a collar?

grazer

We have a Nationwide tracker mortgage taken out in 2006. Yes we have a collar and I actually didn't even have to check the KFI because I know we have a collar.

If we didnt have a collar, I wouldnt be on these forums trying to determine if Nationwide have made some sort of mistake with the 'Change to Mortgage Payment' letters sent out for February.

There are a number of people reporting this now, including GeorgeL below, and the usual response is 'You must be mistaken'

Well the statement on the Nationwide web site about tracker rates is very clear, my letter for February is very clear - but they are at odds with each other. I am being told my rate in February will be 1.67%, the website states it wont fall below 2%.

Well find out on Sunday morning anyway when I check the online banking.