Woolwich / Barclays Base Rate

hughmungas1986

Found this from the link above, hope it helps



How can I re-assure my customer that Barclays Bank Base Rate (BBBR) will not be different from the Bank of England base rate?


Barclays Bank Base Rate records go back to 1932 when it was 2%. Since the Bank of England was granted independence in 1997 the BBBR has been exactly the same every day and ignoring a few historic timing differences, BBBR has always followed the Bank of England official rate, although strictly speaking it is an independent rate.

seikothrill

This is information from Barclays website regarding Barclays Base Rate

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

Does anyone have the correct wording prior to 04 December 2008 as I foolishly forgot to print a copy.

Cheers

foreversummer

No sorry - I don't have that one.

Foreversummer

robertjonesuk

the rate cut is passed automatically to everyone on a lifetime tracker. the payments however change only once a year (usually september/october time). this means that after every rate change you wil be charged less interest,and while your payment is not changing, you will be paying off more capital of the mortgage. this also applies to interest only mortgages.

if you want to reduce your payment, due to rate change, you must call and ask woolwich to do it. they will do it for you immediately.

oidhche wrote: »

I had a conversation with the Woolwich on Friday when the further 1% cut to the base rate was announced. Although they aren't automatically passing on the cut to customers on tracker mortgages, such as myself, they will change it if people phone up and ask them to. I have cut my monthly repayment by £170 by doing this, so I would urge anyone on a tracker with Barclays or Woolwich to phone them up and ask them to cut their interest rate.

Hope this helps

Rikki

robertjonesuk wrote: »

the rate cut is passed automatically to everyone on a lifetime tracker. the payments however change only once a year (usually september/october time). this means that after every rate change you wil be charged less interest,and while your payment is not changing, you will be paying off more capital of the mortgage. this also applies to interest only mortgages.

if you want to reduce your payment, due to rate change, you must call and ask woolwich to do it. they will do it for you immediately.

No it doesn't. Interest only trackers change the 1st of the month after BOE rate change.

Trying_to_be_good

Everyone's Woolwich/Barclays tracker interest rate changes automatically on the first of the following month.

The payment is only automatically changed for those on interest only or part-and-part mortgages.

If you're on repayment, your payment is only recalculated once every year, at the end of September review.

Now let's get back to the real issue, i.e. whether BBBR = BoE Base Rate.

Rikki

Trying_to_be_good wrote: »

Everyone's Woolwich/Barclays tracker interest rate changes automatically on the first of the following month.

The payment is only automatically changed for those on interest only or part-and-part mortgages.

If you're on repayment, your payment is only recalculated once every year, at the end of September review.

Now let's get back to the real issue, i.e. whether BBBR = BoE Base Rate.

I said that in post # 8


And yes BBBR does equal BoE rate.

Trying_to_be_good

Rikki wrote: »

And yes BBBR does equal BoE rate.

Not according to their current website, it isn't. Hence the concern. It might be the same for some people, but not necessarily for all.

Rikki

Trying_to_be_good wrote: »

Not according to their current website, it isn't. Hence the concern. It might be the same for some people, but not necessarily for all.

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.


Taken from the woolwich website.www.woolwich.co.uk/mortgages

Trying_to_be_good

Rikki wrote: »

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.


Taken from the woolwich website.www.woolwich.co.uk/mortgages

But they also now have this on their website, at http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?site=pfs&task=popup1group&value=15396:
"Barclays Bank Base Rate typically follows the Bank of England Base Rate but it is not guaranteed to do so. The Bank of England Base Rate can go up or down and is announced by the Bank of England's Monetary Policy Committee every month."

I admire your optimism, but that's why we're concerned.