nationwide tracker mistake

GeorgeL

Looks like we are the lucky few! I wonder how long its going to take to get a competetive fixed rate and more to the point with a realistic LTV?!

HangTime

Speculation: I suppose it's possible that Nationwide put collars in their contracts, but their current software system doesn't allow them to be easily applied (at least not to some mortgages) as for whatever reason it wasn't part of the specification when it was developed.

Anon

There will be a logical reason why some have had the collar applied and some haven't (in the terms and conditions) - I doubt very much it is a software problem - they would switch to chalk and slate and manually calculate it if that were the case .

Anon

HangTime

Probably
I did wonder if it would be some kind of system 'error' where the letter you get sent is automatically generated stating your new rate even if that's not what is actually being applied, but if that was the case I'd have expected to see them notify customers of the mistake by now.

poet123

I just got my latest reduction letter:T so no collar being applied here!

GeorgeL

I'll drink to that.

GeorgeL

I thought some of you maybe interested to know I have received a letter from Nationwide regarding my tracker products. This is a paragraph lifted from the letter.

"One of the terms and conditions of our tracker mortgages is that they have a floor found in Section 4 of your KFI.

As we did not fully disclose the details of the floor to you in previous documentation we have decided not to apply the tracker floor to" your mortgage and I can confirm that when your mortgage completes your rate will continue to track the Bank of England base rate, plus or minus your differential. Please note this only applies to the account numbers above."

I must point out that I am porting my mortgage which is why they have mentioned completion. I doubt they would have written to me if I wasn't, but you can be assured that will be the same reason you guys aren’t affected by the floor.

I can't complain then, 2.75% floor has been completely scrubbed. That means I could go as low as 0.94%. Nice.

poet123

They must have felt that if it was challenged, they could not defend it.

robnye

i have 4 mortgage accounts wiht Nwide, 3 are on a lifetime tracker, i raised the issue with them after the second drop, as to whether this was right, their first reply was to repeat the blurb from before christmas about not enforcing the collar of 2.75, but this blurb was worded in such a way that you could only assume that it was for that base rate reduction only,

from nationwide blurb:
Following the decision by the Monetary Policy Committee on 4th December to reduce the Bank of England base rate from 3% to 2%, Nationwide decided not to apply the floor condition on its tracker mortgage products on this occasion because we feel we ought to be supporting our‚ borrowers as much as possible in the current exceptional market conditions

so i have emailed them again.... and been told that someone else will write to me.... since then i have received the new mortgage payment reductions, yep you guessed the interest rate has gone down again..

admittedly i dont have a problem with making lower payments (any reduction in overall monthly figures is being thrown at the 1 mortgage account that is on SVR), what i am concerned with is , is whether this is correct and dont want them coming back to me saying we got it wrong