Does anyone know what the requirements are for IFAs and lenders with respect to how collars on tracker mortgages should be detailed within Key Facts Illustrations and Mortgage Offer letters.

There appears to be a difference between how these potential changes in the interest rate you will have to pay on your mortgage are being communicated to consumers through the KFI and the Mortgage Offer letter. For example I have seen a KFI from a Nationwide tracker product which explicitly detailed the 'floor' rate the tracker would go to regardless of where Bank Of England base rate fell to. Yet I have also seen a Halifax KFI and Mortgage Offer which provides no details about the collar or a rate 'floor', yet in the small print of their terms and conditions there is such a collar.

I would have expected that all lenders were obligated to communicate this critical detail within the KFI and Offer Letter. Why do Halifax not have to do this or should they be and are not meeting their regulatary obligations?

Hi

IFAs/mortgage advisers produce KFI's direct from the lenders themselves - as a financial adviser I can produce it for a client but it has come directly out of the lender's own system. In my opinion Halifax should show clearly in their KFI about the floor, but then again it is only the Key Facts, not all the Facts. Perhaps they should change it from a Key Facts Illustration (KFI) to a Some of the Facts Illustaration (SOTKFI)?

Brian