Nationwide Tracker - collar

MsAnderson

I have a two part mortgage (2 remortgages) the first is 0.34% above base rate the other is 0.74%. The are currently sitting at 2.34 and 2.74 as Nationwide lowered their collar to 2%, then stopped passing on the lower rates when the BoE rate reached and passed 2%. You probably knew all that...

My question is, if/when the BoE rate starts to rise, will I only start paying more when the BoE rate passes 2%, or if BoE rate plus my rate exceeds 2%.

E.g. if the BoE rate goes to 2.5, my rates will be 2.84 and 3.24?

But if BoE sticks at 1.5%, I stay where I currently am?

Thanks in anticipation.

AHAR

MsAnderson wrote: »

will I only start paying more when the BoE rate passes 2%,

Yes.

I think the collar will also rise with every rate rise over 2% up to 2.75% and not fall again if the rates go back down. I can't find the original letter they sent to confirm that though.

KarenBB

They temporarily reduced the collar to 2%. I feel they shouldn't inc the rate until the BoE rate goes above 2% but as this reduction was temporary I wouldn't be surprised if they inc the collar back up to the 2.75 it should be if rates start rising. I don't think the letter said how long it would stay at the 2%, maybe they were keeping their options open. I'm very much enjoying the low rate at the moment.

I suppose my answer is I haven't got a clue and I doubt N'wide could tell you until the rates start to move.

MsAnderson

I couldn't find any info in the letter either, no news is good news I suppose. Will wait and see what happens when the rates move back up, but defo feeling the benefits just now.