What is Barclays Bank Base Rate?

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
«13456717

Comments

  • 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
    MarkyMarkD Posts: 9,912
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    They are the same rate.
  • 6am
    6am Posts: 178
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    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.
  • 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.
  • 6am wrote: »
    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.

    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.
  • 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.
  • 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.
  • This is really a gorgeous explanation George ... gr8
    Simple but really you have a solid point ... i hope it solves Jon's confusion.
  • tifnstav
    tifnstav Posts: 441 Forumite
    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
    dangers Posts: 1,456
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    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.
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