What is Barclays Bank Base Rate?
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MarkWatson wrote: »While on the subject of Woolwich Buy to Let mortgages, does anyone know if they have impose a minimum floor for their tracker interest rates?
I have a tracker at 0.49% above the BBBR but now there is some suggestion that if the B of E Bank rate (and the BBBR) goes below a certain level some lenders have imposed a floor, lower than which their rate will not fall (some say around 3%). I can't find my detailed T&Cs - does anyone know if there is a floor for Woolwich BTL Tracker rate mortgages?
I'm on BBBR+0.17 and can't find any reference to a minimum threshold in the Ts&Cs.0 -
It clearly states on the Barclays website that the BBBR follows the BofE base rate.
Barclays could be in serious trouble if they try to do anything other than follow the BofE base rate as this is how they have eplained the BBBR workings.
You would expect them to be protecting themselves against these movements by borrowing themselves at a more competitive variable tracker type rate or paying investors interest based on the BofE rate.
Barclays website still shows 4.5% as their base rate at the time of writing. The website clearly states:
"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."
If they do not change their rate to 3%, I for one will have found this sentence incredibly misleading.0 -
I have had the Woolwich tracker for a fair while now (BBR + 0.19%).
My paperwork clearly stated my payments would be reviewed annually but my rate would be current. I like to control what I pay so I set up a standing order to my mortgage account and cancelled my direct debit. The Woolwich (Barclays) have no problem with this and the only condition was that my payment came out on or before the due date each month. I overpay every month anyway but if I have a decent bonus month I amend my standing order to overpay by extra.
It is only baby stepping but in the three and a half years I have had the mortgage I have overpaid by £7k without feeling the pinch for it. I like doing like this as every overpayment means the next months overpayment is worth even more
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I have overpaid my woolwich mortgage but left my DD as it was .
If I have extra money I make an extra payment .
If the new rate is passed on my DD will be around £150 per month .This time last year it was £295 ,so I can need to make serious overpayments when I can ."Do not regret growing older, it's a privilege denied to many"0 -
Mine is just 3.18% now, but I did have an amazing 3.69% fix for two years a few years ago! As others have said, swings and roundabouts as my first fic was 5.45% for 5 years when rates were dropping. Make the most of the ability to overpay whilst we can - I'm not sure the Base Rate will be this low too long.Mortgage Free thanks to ill-health retirement0
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I just joined simply to post the link to Barclays page which says that the BBBR follows the BR, but others beat me to it.
But why are you all so keen to pay off your mortgages? Why pay off a debt under 4% when you can stick the money in a fixed rate savings account paying 7% ? Actually I suppose you're all higher rate tax payers so the sums work out differently for you. I've fixed what savings I can, but have been caught with many years' of ISA savings in a 180 day notice account paying base +.5% - it seemed such a good idea at the time.0 -
I have a tracker mortgage of 0.17 above what I thought was the BOE base rate but it would apear that i too track the BBBR. I will be watching very closley so far the BBBR has mirrored the BOE rate but there does not seem to be any guarantee. I would say that if you dont feel you are getting a fair deal threaten to find another lender but it these circumstances thay might just let you try i dont think i can find better that 0.17 above but if you know better please let me know thank you.0
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As other people have pointed out, Barclays Bank Base Rate has changed on their website to 3%.:j
As they have told people that this rate follows the Bank of England Base Rate, this is surely what they have to do or face a barrage of complaints and legal action, not to mention serious loss of custom and trust.
Don't forget that the Bank of England rate falling means that the bank will be benefiting from those people on fixed rate deals who will not see a reduction. So, even if the base rate falls to 0%, I can't see any reason why Barclays should not be able to honour their tracker as they will be gaining from all those fixed rate deals. Conversely if the base rate went up to 20%. Barclays would then be subsidising the low fixed rate deals while taking the profit from the trackers.
When the bank is deciding on which mortgages to push or pull, it has to make sure that it's portfolio spreads the risk. If a bank actually has to go back on it's word then it is quite likely that it will be the next bank to fail as this will mean that it's business model is not sound.0 -
The barclays bank base rate does track the BOE.
See following link.
http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?site=pfs&task=popup1group&value=15396
Hope this helps0
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