Has anyone else got a Nationwide Tracker Mortgage that they took out between Dec 04 and Dec 08.

I was of the opinion that these had a floor of 2.75% but Nationwide being the nice guys they are waived that and re-set the floor to 2%.

I was expecting the last 2 rate cuts to have no impact on my repayments but each time I have received a letter from Nationwide telling me once again my monthly repayments would be reduced.

I can’t really say that I am complaining – but is this an administrive error? Anyone else noticed the same thing.

Below is a cut and pasted from their website

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%. For more information on this, please refer to our January 2009 Questions and Answers.

What’s your question? Or have you answered it yourself?

I have one, they are reserving the right to introduce the cap at 2% but they are still passing on some of the reductions. You can’t complain really, they’re within their rights to cap it at 2% which is still cheap – at least you’re not fixed!

Thanks Shandy – so it is not an error and they may decide in future to instate the 2% cap that they have chosen not apply at any point to date. So long as they do not do it retrospectively which of course they won’t.

That is ace news. Even cheaper mortagage! I thought 2% was taking the p1ss, as it was!

i’m pretty sure mine has been capped at 2%. i’m on a base plus 0.25%. I’ll have to check my bank statements later….

Mine has a cap of 2.64% still happy tho!

Oh …. Then perhaps it is a mistake/error on their behalf.

I was expecting mine to be capped at 3.23% (the original 2.75% floor + 0.48%). So when they said they were reducing their floor to 2.0% then I expected mine to bottom out at 2.48% but currently I am only paying 1.48% before the change yesterday!

If it is a mistake then they have made it on at least two and perhaps even 3 occassions

I was in there yesterday looking at whether it was worth switching to a tracker in the final 3mths of my now expensive fixed rate and bottom line is it isn’t. Their current tracker has a base rate floor of .01% and is +2.64% whilst the standard variable is a max of +2% over base rate. Hence the tracker’s not attractive at all but N/wide have it apparently cos they are not offering SVR to new customers, only existing ones. So I’m gonna continue ‘overpaying’ cos I’ll save more when onto the SVR. Oh for a tracker from 18mths back of say base +.24%……. they’d almost be paying me but unfortunately they’re not!

Technically the lower limit is a collar I think…cap is the rate it can’t rise above.

Used to be able to get Cap & Collar mortgages so rate would fluctuate within a band but I think they’ve now gone

whytetrash – your correct I should have used the word collar rather than cap. Think people still understood what I meant … hopefully anyway

We asked about the collar and were told it was going to come down to 2% and then possibly lower if the Bank Of England continued to reduce it. They suggested the collar might be revised to 1% if it went to 0% interest rate.

just checked my statement and i’m pretty sure mine hasn’t dropped past the 2% collar. not complaining as its ~£450 cheaper than this time last year.

Sorry – bit of a gloat.

We’re lucky our mortgage was with the Portman which was acquired by Nationwide. Fortunately they agreed to keep the old terms in place and we are on a tracker with no floor or collar and our current rate is 0.79%

Aleigh off here basically owns the Nationwide. In Swindon. She can sort your mortgage out for you.

Aleigh off here basically owns the Nationwide. In Swindon. She can sort your mortgage out for you.

shhhhh RB – don’t tell everyone 😉

another Nationwide Tracker customer here – yes ours had a minimum ie a collar but Nationwide has been passing on rate cuts wellbelow it – have been in to get them to recalculate based on paying off more promptly and not got any oh this is wrong stuff – but think will keep record that we read thru with an advisor / name and date in case they really have screwed admin – after all can’t get address right despite owning part of the house and about 10 requests to correct so letters don’t go to similar address 9 miles away

ours is with Standard Life. It’s now down to 0.86%.. Great, but the savings aren’t doing too well.

Aleigh off here basically owns the Nationwide. We all do don’t we? staff & customers – mutual an all that.

Wibble – Member

Aleigh off here basically owns the Nationwide. We all do don’t we? staff & customers – mutual an all that.

Erm – That would be such a lovely idea – but you find that it’s really like that. No there are still directors who are out to make money and not all the money will be given back as the best prices but instead held in reserves so that the company doesn’t have to rely on 3rd party capital.

I too work for the Nationwide – but my redundancy comes in at the end of the month – But if I own the company why aren’t I getting a say in that?

As for the original poster – Nationwide have taken out the option to impose a limit, but the actual rules are on your actual product itself and no cap can be set if it there is the option of setting one in the contract itself. Now you said there was a 2.75% cap in place, but it may been a general term and not actually part of the deal you signed with.

So yes – it is perfectly feasable to have a Nationwide product that has now gone below their threshold.