Nationwide Tracker Collar Clause is Justified said Spokesperson
Dec 04, 2008 | Comments 0
A Spokesperson for Nationwide Building Society said due to the Collar (floor) being clearly outlined in the Key Fact Illustration (KFI) as well as in the societies terms and Conditions they are completely justified in enforcing the clause.
Whilst hundreds of thousands of customer rejoice today after the interest rate cut, there are many customers that are on tracker products that will miss out partly or completely on the Bank of England base interest rate cut, due to several lenders imposing collar clauses into the KFI and mortgage contract.
Nationwide the UK’s largest building Society has on its tracker deals a collar of 2.75 percent, this would mean that customers who are the Nationwide tracker deal will only see 0.25 percent of the 1 percent cut passed onto them, the rate cuts will be implemented in January.
Nationwide are offering a new tracker deal that will be given a new collar of 1 percent, with some lenders having collars of up to 4.5 percent, customers on those deals would not have benefited from the previous cut at all.
Source: Guardian
Filed Under: Mortgage News