Barclays/woolwich Tracker !!

sburt4

Hi - first post and I have checked previous discussions and I see there has been some discussion on this ... however I have a Barclays/Woolwich Life Time tracker. I just called them and have been told that there is no reason that BARCLAYS / WOOLWICH have to pass on any rate reductions. I pointed out -
Barclays Bank Base Rate
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.

They said ... we are not obliged to follow or pass on any BoE rate drops.
I believe I have been missold - anyone else able to substantiate thos.
Thanks

AMILLIONDOLLARS

Wait and see what they do! Sounds like someone at Barclays could be winding you up!!

AMD

eineben

http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?site=pfs&task=popup1group&value=15396

sburt4

Hi - yep I pressed the point and the reply was a categoric ... our trackers do not have to follow BoE.

Mattfoo

I almost completed with the woolwich about a month ago, but found the better FD tracker deal and completed with them yesterday.

However when I first applied I noticed that it would track the Barclays bank rate. I asked about this and the agent said it was their own rate which has always followed the BOE rate. They said Quote " I have never known it to not follow the BOE rate so you wont have to worry" !! :eek:

I must admit I lost confidence at that precise moment and went elsewhere for a better deal and one that tracks the BOE rate.

Yes, I would have felt like I have been misold if I completed with them after that comment. Offering opinions should not be on the agents job description.

minimike2

As per the above link...

"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"

Seems pretty simple to me.

Most lenders use thier own terminology for it so that they can wait until the 1st of the following month to change it. Barclays does track BoE and there has been no mis selling.

sburt4

yep seemed pretty simple to me as well ... but the information as given by Barclays/Woolwich today was that they are not obliged to pass any BoE rate drops on.

minimike2

They are probably refering to thier SVR or to new tracker products, on which the current habit is to increase the margin when base rate gets cut. Existing customers get the full benefit of the rate cut.

Unsure if they have a lower limit / "collar" on thier trackers like Halifax do...I will find out.

sburt4

Thanks - appreciated
I was discussing my specific existing mortgage and the Barclays/Woolwich advisor was as I say absolutely categoric. I have a Lifetime Tracker and the response was that Barclays dont have to pass any rate cuts on.

Trying_to_be_good

No collar on Woolwich/Barclays, and the rate is the same as BoE. I checked when I remortgaged with them in June/July 2007.

sandyw7

I'm in a pretty stressful situation, applied months ago for what is now an astonishingly good tracker rate from the Woolwich (0.69% above base rate). I had a letter of acceptance 3 weeks ago, but stupidly had failed to include my wife's name on the application. So we had to fill in a form to 'vary' the application - crucially it's not considered a brand new application - and we were assured by our salesman that we would still be given the same rate.

Today's news potentially throws all that up in the air.

Question now is, are we in danger of having the offer withdrawn, despite having paid the application fee (which I would hope might somehow guarantee the rate). My hunch is that the bank has the right to pretty much do what they like, and could even withdraw the offer between exchange and completion.

Does anyone know if I am right to be s***ting myself?