He said: "Whilst tracker interest floors can be a legitimate term of a mortgage, this can only be if it is clear and unambiguous to the consumer and is consistently and prominently spelt out in the initial KFI and offer document throughout the sales process. If it is not you run the real risk of both breaching our disclosure requirements and having an unfair contract term you can't enforce."
This could mean that the Halifax who removed details of its 3% collar from its KFI's in 2005 could have to pass on any future rate cut to the 550,000 customers who are on tracker mortgages.
