I see that the Nationwide Building Society is supposedly heading for a ruck with the Treasury because it is planning on not passing on any further rate cuts to its customers on Tracker mortgages.
Basically it intends to invoke the the clauses in its mortgage contracts which says that the interest rate on the money cannot fall below 2% irrespective of what the base rate of the Bank of England may be.
What I want to know is what exactly is wrong with that? I have a fixed rate mortgage until 2011 currently, and am paying well above the base rate. I signed up to it, and thus I adhere to its conditions.
Likewise, if you signed up to a Tracker mortgage and the contract makes it clear that the interest rate will never fall below 2% even if the base rate from the BoE is 0% then tough shit.