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  • FIRST POST
    jonjoe1969
    What is Barclays Bank Base Rate?
    • #1
    • 5th Sep 07, 6:49 PM
    What is Barclays Bank Base Rate? 5th Sep 07 at 6:49 PM
    I've just completed on three tracker mortgages with Woolwich (one residential tracking at 0.18% over base, two buy to let at 0.49% over base).

    I got back from holiday to find that all three had completed while I was away and I saw a reference in the completion documents to them tracking above the Barclays Bank Base Rate (BBBR). I've checked the key features document I referred to when I made the application and it clearly says that they would track over the Bank of England Base Rate.

    I've got to decide whether to complain; and that will involve looking at all the correspondence including the key features, the offer letter etc to see when the change occured. Woolwich certainly didn't clearly draw this important change to my attention.

    But that's not the point for now. My question is what is the BBBR? If it historically has always mirrored the Bank of England base rate then my problem isn't likely to result in me losing money. But if the BBBR fluctuates differently to BoE base rate then I'm going to be deeply unhappy.

    I suspect the bank made this change to deal with small short-term fluctuations in the availability of inter-bank funds in which case BBBR will nearly, but not quite, always mirror BoE base rates. So, I might generally not see much, if any, difference. I know that the current rate for BBBR is 5.75%, same as the BoE base rate.

    BUT - I have tried doing some research and can't find any historic data on what BBBR has been and whether it has mirrored, or nearly-mirrored the BoE base rate. Can anyone help?

    Thanks

    JJ
Page 1
  • MissScarlett
    • #2
    • 5th Sep 07, 8:06 PM
    • #2
    • 5th Sep 07, 8:06 PM
    I have just had a mortgage offer from Woolwich(Barclays) and it confirms that-: All references to the Barclays Bank Base Rate in your offer document should be taken to references to the Bank of England Base Rate.

    I did ask the question at the time that I arranged the mortgage as to why it was Barclays and not the BOE base rate that the mortgage tracked and was advised that it's one and the same and it has never differed from the BOE rate. Hope that puts your mind at ease.
  • MarkyMarkD
    • #3
    • 5th Sep 07, 8:30 PM
    • #3
    • 5th Sep 07, 8:30 PM
    They are the same rate.
    • 6am
    • By 6am 18th Sep 07, 8:51 PM
    • 109 Posts
    • 32 Thanks
    6am
    • #4
    • 18th Sep 07, 8:51 PM
    • #4
    • 18th Sep 07, 8:51 PM
    In the light of recent events what are the chances that Barclay will abandon their practice of mirroring BOE and simply increase BBBR? Is there any guarantee from Barclay that they will not do that?
    I reread my T&C and it seems to me that they are not obliged to follow BOE and can increase BBBR if they want to.
    • gemma.zhang
    • By gemma.zhang 18th Sep 07, 9:27 PM
    • 302 Posts
    • 57 Thanks
    gemma.zhang
    • #5
    • 18th Sep 07, 9:27 PM
    • #5
    • 18th Sep 07, 9:27 PM
    I am having mortgage with Natwest, and they have similar thing - Natwest Bank Base Rate. When I called them, and they simply answer me - it's the same as BoE bank base rate !... bit anonyed with their answer, as there's nothing written on contract, or T&C, specifying that.
  • Kiernan809
    • #6
    • 18th Sep 07, 11:24 PM
    • #6
    • 18th Sep 07, 11:24 PM
    In the light of recent events what are the chances that Barclay will abandon their practice of mirroring BOE and simply increase BBBR? Is there any guarantee from Barclay that they will not do that?
    I reread my T&C and it seems to me that they are not obliged to follow BOE and can increase BBBR if they want to.
    Originally posted by 6am
    They can do it but they have to stay competitive or it will do them more harm than good as they will just lose business.
  • CAMBODIA
    • #7
    • 4th Oct 07, 7:06 PM
    BBBR Why the secrecy???
    • #7
    • 4th Oct 07, 7:06 PM
    This particular problem of the BBBR is my problem at the moment. I've been trying for days to get a straight answer out of Barclays about what is the BBBR and will it deverge for BOE base rate as I'm on the hunt for a good life time tracker. They said to me the BBBR has always historically mirrored the BOE rate, however cannot provide me with proof of this.

    Its interesting if as jonjoe1969 suggests the change from BOE rate to BBBR rate on their tracker mortgages was only made in September 2007. Certainly Barclays never owned up to this.

    Given that Barclays wish you to purchase a tracker which follows an unknown quantity they call the BBBR they need their heads looked at. Nationwides tracker is clearly a better bet following the real deal, the BOE rate.
    • Gorgeous George
    • By Gorgeous George 4th Oct 07, 7:40 PM
    • 7,787 Posts
    • 8,466 Thanks
    Gorgeous George
    • #8
    • 4th Oct 07, 7:40 PM
    • #8
    • 4th Oct 07, 7:40 PM
    If BBBR = BoE Base Rate, ask them to change their wording. If they refuse then BoE BR is not the same as BBBR. It could be an insurance policy for your lender.

    Maybe your lender has borrowed from Barclays?



    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • darsh999
    • #9
    • 4th Oct 07, 7:58 PM
    • #9
    • 4th Oct 07, 7:58 PM
    This is really a gorgeous explanation George ... gr8
    Simple but really you have a solid point ... i hope it solves Jon's confusion.
    Punjabi Tradition
  • tifnstav
    I am just encountering the same problem - we were sold on the basis that it tracks the BOE base rate - the offer says that it tracks the BBBR.

    I am going to ask the lender to change their wording - if they won't then bye bye. Will post when I get a reply.
    • dangers
    • By dangers 11th Jan 08, 6:49 PM
    • 1,367 Posts
    • 2,451 Thanks
    dangers
    I spoke to the Woolwich today about my mortgate. They confirmed that the Barclays Base Rate went down to 5.5% on 1st Jan. Hope that helps.
    • chappers
    • By chappers 11th Jan 08, 9:07 PM
    • 2,425 Posts
    • 1,350 Thanks
    chappers
    If you are concerned go elswhere as has been said Nationwide lifetime tracker is hard to beat no fees but a five year tie in.
  • Caro75
    I, too, am on the same BBBR+0.18% tracker mortage from Woolwich/Barclays. However I've been paying the same this month (amount taken on 15th of January) as previous months, despite the fact that the BBBR should have decreased to 5.5% on the 1st of January (according to dangers above). Any idea why this is the case? Will I get the cheaper payment next month only?
    "Cleaning your house while your kids are still growing is like shoveling the walk before it stops snowing."
    • Floxxie
    • By Floxxie 17th Jan 08, 10:47 AM
    • 2,746 Posts
    • 5,100 Thanks
    Floxxie
    Hi Caro75,

    I've been trying to contact Barclays on this all morning as I too had exactly the same payment go out on the 16th Jan as I did on the 16th Dec. Unfortunately as I have not been able to get through, I can't answer your question but hope somebody has been successful and can provide a response.

    Floxxie.
    Mortgage start September 2015 £90000 MFiT #06
    Make £10 a day May Challenge £328.51/£310
  • mfhstid
    Same here: I'm on BBBR+0.17, but my payment this month is the same as last.

    Woolwich website currently shows BBBR as 5.5%, so not sure what's going on here.
  • mr_tickle
    My understanding is that the amount of interest you are paying will change as soon as BBBR changes, but they only review the payments you make automatically once a year (in May I think). If you do nothing, and BBBR has come down, then in May they will automatically lower your payments.
    Alternatively you can ask them to alter your payments before May.

    I suppose this is to simplify things, so that if there are 3 consecutive rate changes, you don't pay different payments for 3 months.

    In the mean time if you don't change your payments at least you're overpaying your mortgage!
    • Floxxie
    • By Floxxie 17th Jan 08, 2:14 PM
    • 2,746 Posts
    • 5,100 Thanks
    Floxxie
    My mortgage offer states that:

    "Changes in the Base Rate made during the month will take effect from the 1st of the following month"

    therefore I would expect my payment to be reduced accordingly as the rate change took effect 7th December.
    Mortgage start September 2015 £90000 MFiT #06
    Make £10 a day May Challenge £328.51/£310
    • Floxxie
    • By Floxxie 17th Jan 08, 2:18 PM
    • 2,746 Posts
    • 5,100 Thanks
    Floxxie
    Sorry forgot to add that there is nothing in there about not reducing payments on a rate change or only doing so once a year.

    I guess I shall have to wait for my monthly statement to see what interest rate is beign charged.

    Floxxie
    Mortgage start September 2015 £90000 MFiT #06
    Make £10 a day May Challenge £328.51/£310
  • 02skn
    Same here: I'm on BBBR+0.17, but my payment this month is the same as last.

    Woolwich website currently shows BBBR as 5.5%, so not sure what's going on here.
    Originally posted by mfhstid
    If you look at the mortgage statement they sent you in September it tells you on the back that rates are reviewed once a year in September. I rang the mortgage line to enquire about the recent cut and the nice man said you will only see a change in your monthly payment once a year. If you would like your payment amended you have to ring their 8p per minute line and ask. Not really a Tracker is it!.
    • Floxxie
    • By Floxxie 17th Jan 08, 5:30 PM
    • 2,746 Posts
    • 5,100 Thanks
    Floxxie
    Ok, found the wording on my October annual statement:

    "If you have a variable rate repayment mortgage your repayments are reviewed once a year in accordance with your terms and conditions. This review will take into account changes to Barclays Bank Base Rate (BBBR) and Woolwich Standard Variable Rate, whicih are affected by changes in the Bank of England base rate. Since your last mortgage statement the Bank of England has increased its base rate by 1%. Your revised payment reflects all interest rate changes over the last 12 months and will be applied to your mortgage account (s) in November 2007."
    Mortgage start September 2015 £90000 MFiT #06
    Make £10 a day May Challenge £328.51/£310
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