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Barclays Bank Base rate - Change of Definition
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NottsAndy
Posts: 4 Newbie
Hi,
I've noticed that the description of the BBBR has changed -
http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?site=pfs&task=popup1group&value=15396
Overnight, they've introduced the word "typically", and said that it's not guaranteed to follow the BoE.
Are they just being cautious? To what rate do you think they'll follow BoE?
I've noticed that the description of the BBBR has changed -
http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?site=pfs&task=popup1group&value=15396
Overnight, they've introduced the word "typically", and said that it's not guaranteed to follow the BoE.
Are they just being cautious? To what rate do you think they'll follow BoE?
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Comments
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Maybe being cautious - but there's always been that caveat I think. Also the BBBR is matching BoE at 2%:j0
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Well they aren't obliged to follow the government over a cliff. Neither are any of the other banks, except the "nationalised" ones perhaps.If you don't stand for something, you'll fall for anything0
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Of course anyone who already has a tracker product would have printed out the original pageBarclays Bank Base Rate
Interest on tracker rate mortgages is charged at a set margin above or below or equal to the Bank of England Base Rate. Interest rate changes on existing tracker rate mortgages take effect from the first of the month following a change to the Bank of England Base Rate. All references to the Barclays Bank Base Rate in your offer document (where the reference is to 'Barclays Bank PLC’s Base Rate') and Key Facts Illustration document (where the reference is to 'our Base Rate') should be taken to be references to the Bank of England Base Rate.
Bank of England Base Rate
This is also known as the Bank of England's repo rate. This rate can go up or down from time to time and is announced by the Bank of England's Monetary Policy Committee every month.
maybe take a look -
http://web.archive.org/web/20071230085115/www.personal.barclays.co.uk/BRC1/jsp/brccontrol?task=articlegroup&value=6228&target=_self&site=pfsAny posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.0 -
I have a Woolwich lifetime tracker (+0.18%) taken out August 2007. I assume from the URL that the page was from 30 December 2007, so I guess I'm "safe".0
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Nothing is certain in the current market- but would certainly add weight to any argruement - I plucked that date out of thin air - there are othersAny posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.0
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currently trying to get someone at barclays / woolwich to tell me what they are playing at...
I'm currently getting passed the parcel - which is all fun.
It doesn't look like anyone told their staff they'd made the change.
And finally they just cut me off.0 -
woolwich ( barclays mtgs) have had at times some good deals - although my own experience in processing, and client feedback on follow on service is not at the level I / clients would expectAny posts on here are for information and discussion purposes only and shouldn't be seen as (financial) advice.0
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I've just looked at Barclays Personal Finance page and their definition of Barclays Base Rate in their glossary is as follows:
"Barclays Bank Base Rate follows the Bank of England Base Rate which can go up or down and is announced by the Bank of England's Monetary Policy Committee every month". (Complete definition as it appears on the web site.)
That's it - in black and white. So how Barclays have the front to add the "typically follows but not guaranteed" bit to their BBBR page bewilders me. It is in complete contradiction to their own glossary of terms as it ppears today.
Very sticky ground for them if they do try and wheedle out of passing on further cuts to tracker ciustomers.
No further evidence m'Lud.0 -
Are they obliged to carry on passing every part of an interest rate cut?
What obliges them to do so?
People can take their business elsewhere and should if they can get a better deal, but if the banks think the BoE is making a mistake they surely shouldn't be expected to copy that mistake. That would be irresponsible of them would it not?If you don't stand for something, you'll fall for anything0 -
I think the question is can they retrospectively change the T's and C's / language on a mortgage without informing the customer they are doing so.
If this language only applies to new mortgages then that would be fair and proper.
If the small print says they can change the definition of the BBBR then possibly what they are doing is correct.
The problem for me is they haven't announced it and nor do their staff know about it either.0
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