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With another interest rate cut on the cards, 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)
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