Hi Peeps

I have a 6 month old mortgage with Halifax at the moment. I am on their base rate tracker plus 0.72%. Having thought that I may see further falls in my mortgage, if rates fall further south to where they are now. However, I was reading through my mortgage offer letter last night and I came across this paragraph.

"We can change the tracker margin to you advantage at any time. By "to your advantage" we mean reducing the tracker margin where it is above or the same as the tracker base rate, increasing the tracker margin where it is below the tracker base rate, or changing a margin that is above to a margin that is below. We can also change the tracker margin to your disadvantage, but only at any time when the tracker base rate is less that 3% a year. By "to your disadvantage" we mean increasing the tracker margin where it is above or the same as the tracker base rate, reducing the tracker margin where it is below the tracker base rate, or changing a margin that is below to a margin that is above."

Any ideas exactly what they are talking about or saying? It could be that they are referring to the fact they will not pass on any rate cuts if the base rate falls below 3%. I'm just not sure.

….And why do the bank not explain this thoroughly when you take the mortgage. Only 2 things are normally explained. The plus side, if base rate goes down, then payments go down, if they go up, then I may lose out compared to if I were on fixed rate.

Your thoughts and comments will be extremely appreciated.

Ta