Nationwide have agreed to reduce the collar on Tracker Mortgage

Jan 09, 2009 | Comments 2

Nationwide have agreed to reduce the collar on Tracker Mortgage

Nationwide Building Society has announced that it will be reducing the collar of 2.75 percent it has on existing tracker mortgage holders terms and conditions to 2 percent as a temporary concession.

Previously Nationwide had said that they would not cut the rate for existing Tracker Mortgage customers after yesterdays 0.50 percent rate cut, which would have meant none of the Bank of England interest rate cut would have been passed on.

If you reserved a Tracker Mortgage with Nationwide between December 2004 and November 6 2008 you will benefit from the temporary 2 percent collar.

Nationwide has passed on the full base interest rate cut of 0.50 percent on its Standard Variable Rate (SVR). This will benefit many customers in their SVR products. This change comes into effect on February 1.

Source: mwgbbuy Spartan

Filed Under: Mortgage News

Tags: •

  • Racahel Armitage

    The collar was reduced following last months’ base rate reduction, to 2%. I have a nationwide tracker that currently tracks at +0.64% so I am on 2.64 % already. Does this mean I will not be on 2.14%!!!!!

  • Chris Betts

    This is not a further reduction at all.
    Nationwide were already basing their tracker on the 2% interest rate before yesterdays cut because they decided not to apply the 2.75% collar in December. Therefore they have simply dressed up the same good news again, which I think is a bit rude to do. They have not passed on the new 0.5% cut.