Are Nationwide treating their cutomers fairly?

bigheadxx

RabbitMad wrote: »

0.75% of £100,000 equals £750 per year while the rate stays low.

As you say 2.86 I assume you are tracking at .86% above the base rate. Therefore the lowest the mortgage should have gone to was 3.61% rather than 2.86% that it has gone to.

The collar is 2.75%
Mortgage is 1.93%
.82% less than collar

Mortgage of £100,000 reduces by about £50 per % cut in rates
12X50=£600

S less than £600 p/a
Taking a tracker deal involves taking a risk. However I do believe that if it is in the mortgage conditions a bank should not bow to political pressure.

MarkyMarkD

I agree totally with RabbitMad, that what Nationwide have done is craven.

This is nothing like the Scarborough/Skipton scenario, Robert. That is a mountain being made out of a molehill.

In this Nationwide case, we have a clear case of Nationwide licking Gordon Brown's bum and making their members pay for it. There was absolutely no justification at all for Nationwide ignoring their collar, and they have admitted that by belatedly enforcing at the wrong level after making their initial mistake.

But where I differ from RabbitMad is in how to deal with the problem.

The correct resolution is to simply reimpose the collar at the correct level, with immediate effect. That would then enable Nationwide to increase savings rates to a more sensible level or (rather more likely) to build their reserves for the benefit of the future members of Nationwide (or to cope with FSCS costs and other losses that are doubtless sure to come over the next few years).

I would love to stand up at the AGM and say this - but I have to earn a living. I have no doubt, though, that some of the many pensioners who do bother to turn up at AGMs - and who tend to be long on savings and short on borrowings - will have plenty to say about it.

AHAR

MarkyMarkD wrote: »

The correct resolution is to simply reimpose the collar at the correct level, with immediate effect.

If they did that there'd be lots of angry mortgage holders waving the letter they received to say the 2% collar will stay until BoE goes back up to 2%.
You can please some of the people...

RabbitMad

bigheadxx wrote: »

The collar is 2.75%
Mortgage is 1.93%
.82% less than collar

Mortgage of £100,000 reduces by about £50 per % cut in rates
12X50=£600

S less than £600 p/a
Taking a tracker deal involves taking a risk. However I do believe that if it is in the mortgage conditions a bank should not bow to political pressure.

You need to consider the diffence between the repayment amount (Capital and interst) and the pure interest. If the principle stayed at £100,000 for the whole year then for simplicities sake the amount saved by lowering the collar by .75% is £750.

It might not be exactly this because of the different way interest calcs are done by the different companies but its an easy approximation that gives a nice round figure to cause me to get all angry about it.

(actually I'm not angry about it anymore and have found this a useful way to vent my anger)

as for MarkyMarkD's solution I think AHAR sums up the problem nicely. The right solution would have been to not get into this mess in the first place. Now they are in it I can't see an equitable solution that treats everybody fairly except give everybody te same amount, but that will deplete their reserves and screw the society forever.

leveller2911

All I have to say regarding Nationwide BS is they no longer act for the benefit of the members and as such I too will be taing out all ISA,s and fixed bond too when it matures on 23rd March.If we all did the same it would force them to start being competative.........Im actually quite looking forward to going into the branch and making my views known, LOUDLY too....:D

Robert_Sterling_3

RabbitMad wrote: »

Care to give me a brief 2,500 word synopsis?;)

I have moved the Scarborough & Skipton up the page for you.

It is in the mortgages & Endowments forum.

bigheadxx

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RabbitMad wrote: »

. Now they are in it I can't see an equitable solution that treats everybody fairly except give everybody te same amount, but that will deplete their reserves and screw the society forever.

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Society has always been screwed and always will be.

RabbitMad

Robert_Sterling wrote: »

I have moved the Scarborough & Skipton up the page for you.

It is in the mortgages & Endowments forum.

well thats 10 minutes of my life I won't get back. Couldn't you have just said:
SCAR merged with SKIP and SKIP moved SCAR mortgages onto daily interest and moved the payment collection date back a few days. Some people thought this would cost them thousands but the overall inpact was negligable but that didn't stop 3 pages of ranting on this forum. (Less than 50 words)

I think this is entirely different personally.