Barclays Bank Base rate - Change of Definition

samuel248

Further to the above:

I am obviously referring to existing tracker mortgages. New customers as from today will have to make their choices based on their interpretion of the new definition of the BBBR. I would definitely think twice about signing up under the new terms if I was looking for a mortgage today as I think "typically but not guaranteed" leaves a lot of room for maouvere (in Bar/Wool's favour of course).

They have failed to specify whether they are trying to also apply this new definition to existing tracker mortgages like my own. This is what I am fuming about. As can be seen from this and related threads both here and on other money websites, people are contacing Bar/Wool in order to find out and are not being given a straight answer. There's a suprise!

foreversummer

Samuel248 - I'm with you every inch of the way on this. As I say I've just checked in my terms and conditions and this is what is says. I'm not sure how to interpret them exactly. Was hoping that someone with legal knowledge or one of the Brokers may be able to tell us what they think.

I also of course realise that there may be others out there with different terms & conditions.

Foreversummer

samuel248

But this still doesn't say that a difference between the BBBR and BoE can be imposed contrary to what is stated in other areas of the mortgage pack and website where the BBBR is stated as following the BoE.

RobertoMoir

samuel248 wrote: »

These are the quotes from the thread that I was refering to, amongst others:

"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?"


I don't want to get into an argument over who said what

There's no argument. Each of those quotes are mine. That's pretty clear. I stand by them too, though I do think you may have mis-understood my point.

samuel248 wrote: »

- if 've misinterpreted the aove then fair enough. The point I am trying to make is that we have to stand our ground, otherwise precent will be set for moving the goal posts whn it uits the financial institutions. Bar/Wool will be making enough money out of people who fixed over the last year or two and will be on rates of 5-6 % or more. I bet they have also been quick enough to reduce their savings rates!

Indeed. I'm a barclays customer. The savings thing has affected me. And I'm sorry, Barclays (and other banks) are entitled to change their terms and conditions for new contracts. We're also equally entiteld to tell them to cram poor deals somewhere painful with a side order of walnuts, and shop elsewhere.

They certainly can't and should not change their terms and conditions retroactively for current mortgage or fixed term savings bond type deals.

samuel248 wrote: »

I don't give a monkeys about Bar/Wool. As a customer I expect them to abide by their contract and not set the ground for wriggling out of it.

Indeed. I never suggested otherwise.

trets77

i took my woolich tracker out in June 2007.

okay so far i have got every interest rate cut , but i do not want to give them any chance of welching on the deal i took out , just because it has gone the wrong way for them.

i'm going to write to a few newspapers and intend a complaint to the FSA as a shot across Barclays bow . i advise others to do the same .


i gambled with a tracker when everyone was rushing for fixed rate deals on just the type of thing that is now happening . barclays cannot think they can change the deal mid stream now it has gone my way.

trets77

foreversummer wrote: »

I absolute agree samuel248.

I think the FSA should be told of this. They certainly got involved with the Halifax collar issue, I think they would be rather interested in this latest development from Barclays/Woolwich.

When I have the time later, I will try to find out how to contact them.

Foreversummer

please do , and post here

thecurmudgeon

I think we should wait until Barclays/Woolwich actually refuse to lower someones tracker rate before taking action, I believe they havent done that yet?

T&C on the website will always be the latest ones for new customers, of course they cant change the terms of the mortgage that were set at the time you took out the mortage (unless of course they have a clause in them that allows them to)

gbinner

I have today written to Barclays requesting written confirmation that my tracker mortgage will continue to follow the Bank of England Base Rate. Anything else would be a clear violation of the information given to me when they sold me the mortgage.

If they do not reply or refuse to give me written confirmation, I will go to the Financial Ombudsman and the FSA.

PeterBalham

Payless
It seems the key issue is what the terms and conditions were when you signed up.

I took out 2 buy to lets remortgages in the name of a ltd company last year with the Woolwich at BB Base plus 0.49%.

I had the offer agreed in November 2007 but due to delays only completed in March of this year due to delays on the part of my solicitor and a lesser extent my broker.

I cant find the T&C that applied back in MArch this year .

How would I get a copy is there one on line?

The T&C link you gave states categorically that BBBR us the same as base rate

How will I get a vopy of the terms applying at Novemebr 2007 when I got the offer and MArch 2008 when I finallly got the money?

Thanks

samuel248

I've had a very detailed look at my T&Cs or the tracker I took out in June 2008 and barclays explicitly say that the BBBR will follow the BoE rate. There is no clause anywhere that says they have an opt out if it goes wrong for them. It looks as though T&Cs vary as to when you took the mortgage out, but the common point is that Bar/Wool state in big letters on their webste and in the glossary of terms that BBBR follows BoE rate. Even if they had put something in the very small print in convoluted language somewhere deep in the T&Cs then I think they would fall foul of all the rules regarding transparency as they have made no effort to mention this when they "hoik you in". A pretty major issue when you're signing up to a "tracker" mortgage.
As for the change of definition only affecting new customers, I think this is unlikely as the BBBR is a single entity which applies to us all.
I think Bar/Wool are paving the way to wheedle out of their tracker contract but we'll have to see what happens. If anyone has any luck with the FSA or if Bar/Wool decide to tell us what is happening, then please post it.