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Anyone avoiding collars on YBS BoE+0.75 trackers?
ToasterScheme
Posts: 116 Forumite
Just wondered what YBS are likely to do at the end of the month when my 5 year offset fixed mortgage is supposed to revert to a BoE+0.75% tracker?
Reading around I see some people have been collared at 3% (+0.75%) but some have not.
I have checked by original KFI from 2005 and it doesn't mention a collar.
But then we moved in mid 2009, after base rate was already 0.5%, and ported the mortgage. We got a new KFI, and Offer Letter, both specifically stating the revert rate would be "BoE+0.75%, currently 1.25%" - again no collar anywhere in any small or large print.
I just checked our account online and it seems they are planning to charge 3.75%.
So what do you think? Am I in for a fight and is it likely one I can win?
Thanks.
Reading around I see some people have been collared at 3% (+0.75%) but some have not.
I have checked by original KFI from 2005 and it doesn't mention a collar.
But then we moved in mid 2009, after base rate was already 0.5%, and ported the mortgage. We got a new KFI, and Offer Letter, both specifically stating the revert rate would be "BoE+0.75%, currently 1.25%" - again no collar anywhere in any small or large print.
I just checked our account online and it seems they are planning to charge 3.75%.
So what do you think? Am I in for a fight and is it likely one I can win?
Thanks.
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Comments
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I would think they cant just change the deal away from what was agreed, subject to small print but you say that it has been checked, so all is fine, I would fight them to the death armed with my key facts document.
We have a tracker (detailed below) that has just come to the end of its 3 years discounted rate of BofE + 0.19%, now it reverts to BofE + 0.62 FOR LIFE and we will certainly not be changing it for the foreseeable future...
I thank you very much...ORIGINAL MORTGAGE AMOUNT £106,454.00 (Started Sept 2007)
NOV 2021 O/S AMOUNT £1,694.41 OUR DEBT REDUCED BY £104,759.59 by std regular, over-payments & off-setting.
BofE +0.19% Tracker Repayment Offset Mortgage Discounted Sept 07-10 then increased to BofE +0.62% until 20270 -
My mortgage rate has been subjected to the collar, but it was mentioned in the KFI so I can't argue.
If it isn't mentioned on yours, I would certainly challenge it.
Good luck!
This site has saved me a fortune :money: ...it's also cost me a fortune! :doh:
© Tharweb 2006
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Well I have a 5 year offset fix which runs out 31-12-2010 and it does say that my mortgage reverts to BOE +0.75% with a 3% collar so its 3.75% for me !!!
Good job we have been OP like mad for the last 5 years!0 -
So Dimbo, did you know about the collar when you took out the loan?0
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Im on the 0.75 above boe. no collar stated in my key facts. I phoned them up and they confirmed if its not in the key facts then you dont have a collar. I did have to phone them again to get them to adjust my interest as they "forgot" to reduce it. but they did give me back the months interest they charged.
loving the 1.25% iv been on for 18 months. been overpaying and offsetting (plus ISA s)0
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