please explain Barclays/Woolwich tracker

woodpecker

Hi
We have a Woolwich tracker mortagage, which I understood would track above base rate. However, our repayments did not change to reflect reduction in interest rates late last year and we only got a statement at the end of the year, saying our future payments would be adjusted to reflect the change. Effectively they will change our payments once a year rather than each time the interest rate changes. This wasn't what I expected when we took on the deal - can anyone explain?

alleycat`

In your t's and c's it should tell you they only review your payments annually (october i think).

In essence you over payed and reded the time of repayment on your mortgage.

If you want to reduce your payments / increase them to what the current tracker rate says it should be just give them a call and they will reduce/increase it for you.

Please remember that if/when rates go back up you will be potentially under paying unless you ask them to move the value up.

Hope that helps.

You probably are not alone in not having that explained when you took up the offer
--
Richard

woodpecker

Richard
If it reduces our mortgage (currently 20 years to go) I'm all for it!!
Thanks
W

Rikki

woodpecker wrote: »

Richard
If it reduces our mortgage (currently 20 years to go) I'm all for it!!
Thanks
W

They reduce your payments in October to reflect the interest rate reductions.
Your term remains the same but the amount you owe decreases.