I recently switched to a tracker mortgage with my existing lender Nationwide. Base Rate + 0.64

Since i signed up the base rate dropped by first 0.5% and then the big 1.5% drop. These have been passed on as per the terms of the mortgage. However, i noticed an extra line of the most recent letter advising that the rate is capped at a minimum of 3.39 (2.75% + the 0.64 tracker element.). This was not mentioned when switching to the tracker mortgage, or on the first letter advising that we had switched and what our initial payments would be.

Only after the 1.5% drop has this line appeared. I have looked through the Mortgages - Your Guide leaflet that they sent out with our first letter AFTER I had switched mortgages.

It's obviously not the end of the world as a rate of 3.39% is damn good (if the rates drop further) but is this all above board? They seem to have sneaked this caveat in under the radar.