Nationwide - have they got it wrong

Torndao01

Hi Everyone

I have a nationwide tracker mortgage taken out in Dec 06 which tracks at 0.34 above the base rate, It had a floor of 2.75%, Nationwide passed on the recent Bank of England reductions and even reduced the floor limit to 2%. They then went on the issue this statememt:

Tracker Mortgages reserved between 1 December 2004 and 6 November 2008

• Tracker mortgages reserved between 1 December 2004 and 6 November 2008 have a lower limit or 'floor'* of 2.75%. In January this year, Nationwide took a decision to apply this floor at 2% as a temporary concession
• There will be no change to interest rates for existing customers with tracker products with a floor being applied at 2% whose payments will remain the same as at 1 January 2009 until the base rate rises back above 2%.

This statement is still on their website as of Sat 7th March 2009 and I haven't hear anything different from this on the news or on any internet sites etc. The thing is they have still been reducing our rate on every base rate change, they have been sending us letters informing us of this and as stated this has happened every month. We are now currently paying 1.34%:j(hoping to be paying 0.84% if they do it again). We also have a futher advange and they have done the same on this as well.

My worry is this is a mistake and they will ask for all the money back. Is this happening to anyone else and should I just keep quiet and hope for the best.

Thriftyknickers

My 2 year tracker, sadly finishing 31/3 is at 1.97%. My payments have been reducing since the collar was imposed - but only because I've been overpaying by £500/month. Personally, I'd query it with them - I'm a great believer in honesty being the best policy. And if they've made a mistake, hopefully they'll view it in your favour.