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Interest rates: Tracker mortgages with collars

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Following the latest cut in interest rates, borrowers are being urged to read the small print on their mortgages before they start to bank on lower repayments.

While many lenders are committed to passing on the cut in full to customers on tracker deals, some have collars, or floors, in place which mean they will not reduce mortgage rates in line with the next cut. Our table — put together with the help of broker Savills — shows which banks and building societies impose collars.


Abbey 0% (although some tracker deals have clauses which allow the lender to change the margin on their loan)


Accord 3% (won't fall below 3% +/- your tracker margin)


Alliance & Leicester No collar


Bank of Ireland No collar


Bank of Scotland No collar


BM Solutions No collar


Bristol & West No collar


Britannia BS No collar


Cheltenham & Gloucester No collar


Chelsea BS No collar


Chesham BS 3.50% (this is lowest rate borrowers actually pay)


Clydesdale No collar


Co-operative Bank No collar

Coventry BS No collar


Darlington BS 4.50% (this is lowest rate borrowers actually pay)


Dunfermline BS 1.75% (+/- your tracker margin)


Earl Shilton BS 4% (this is lowest rate borrowers actually pay)


Halifax Effectively no collar (the lender dropped a controversial clause

allowing it to impose a floor last month)


HSBC No collar (reserves the right to stop cutting tracker rates if "material change in mortgage market")


Intelligent Finance No collar


Leeds BS No collar


Lloyds TSB No collar


Monmouthshire BS 3% (this is lowest rate borrowers actually pay)


Nationwide BS 2.75% on loans taken out pre-30/11/08 (did not enforce this after the base rate cut in December 2008 but has said it will not pass on further cuts). 1.00% on loans taken out since 1/12/08


Newcastle BS No collar


Northern Rock No collar


Norwich & Peterborough BS 3% (this is lowest rate borrowers actually pay)


Principality BS 1% (discount tracker sold through brokers is subject to a 2% collar)


Royal Bank of Scotland No collar


Scarborough BS 3% (this is lowest rate borrowers actually pay)


Scottish Widows Bank No collar


Skipton BS 3% (+/- your tracker margin)


Standard Life No collar


The Mortgage Works No collar


West Bromwich BS No collar Retention products launched 24/11/08 include collar set at 2.75%


Woolwich No collar


Yorkshire BS 3% (+/- your tracker margin)


Link here:


Which lenders have collars on their tracker mortgages? | Money | guardian.co.uk

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