CML wants a collar on EVERYONE'S Tracker Mortgage

Heyman_2

http://www.timesonline.co.uk/tol/money/property_and_mortgages/article5604366.ece

Fine with me, as long as they introduce a cap on everyone's tracker at the same time so that I never pay more than oooh 5%

As the article states, not sure how they're going to get around the legalities of this one though

talana

Yeh, I saw that.
They'll get so much grief changing existing mortgage contracts like this, I'm not sure they'll really try.
I'm sure I won't be the only one kicking up a fuss if they do!

Kez100

If they do it than a group campaign is what will be needed. I have paid 14% in my time and now I have called it right but, give it time, and I will no doubt have called it wrong again. They cannot mess with our contracts. Just as I wish I hadn't bought some shares when I did, but I did and so I bear the loss.

payless

whats this - revenge against consumers!

Ian_Griffiths_Halifax

This won't happen. The CML have no legislative powers and would need the backing of the FSA to propose the change to the Government. That would take a long time and it would also cause Civil unrest as it's just a kick in the teeth for all those people who took a risk on rates going down and not up.

When those people, without a collar, signed on the dotted line for the mortgage, it was like writing out a betting slip. On this occasion they've won the bet! It's the bookies who didn't work out the odds correctly.

Heyman_2

I can understand in a very small way where they are coming from in that they need to recapitalise and base rate decreases will hurt them.

But I don't see how they can be asking for this on the one hand, given all the problems the banks have caused the global economy, and putting all their NEW lifetime trackers at 2%+ above the base rate. In future, they'll be making pots of cash out of those deals.

Seems like they want a win-win situation - as usual. :rolleyes:

I wouldn't put it past the government to back them though in the interests of the 'global economy' or some such tat. Like I said in my OP, if the govt agreed to it on the basis that a ceiling was put in place on the same deals then that would make it fair I think.

badboybill

Amazing...banks admitting they got their sums wrong and want the government to introduce legislation to keep them earning a minimum wage on mortgages.

Why don't they introduce products of +1% above BOEBR and a cap of 6% without conditions? Because they're greedy and want their cake and eat-it.