woolwich mortgage interest rates

belerion

Hi Guys ! my first post! My Woolwich discounted rate has just run out, the contract says it will revert to Barclays base rate currently 0.5%. they have not written to me to confirm revised payment details and are being cagey on the phone, was told verbally a new payment amount much the same as before, but would not or could not give revised interest rate! Whats going on? Should have said this is a BTL

Heyman_2

That's strange, not sure why they would be being cagey!!!

How long was your discounted rate set for? Can you give us the exact wording on your contract as reverting to the literal Barclays base rate seems a bit odd to me.

Welcome to MSE by the way!

belerion

Thanks for reply Heyman! should have re read contract before posting, wording says of reversion two years ago" Interest will then be charged on your mortgage at 0.95% above Barclays Bank Base Rate. BBR at the date of this offer is 5.75% variable." according to Barclays website their current BBR (03/2009) is 0.5%.

Heyman_2

Yes, so you will revert to 0.95% + 0.5% = 1.45% mortgage rate.

I suspect they are being cagey because that is a very good rate in the current climate!!! One of my friends had this with Chelsea BS where they tried to move him onto another Fixed Rate despite him reverting to 1% above base rate as part of his original deal!!

You should be on 1.45% which will cost you a lot less than your discount rate. So don't let them try and put you on any other rate!

Edit: just seen that you say the new payment amount is the same as before. I vaguely remember something with Barclays (or Woolwich) mortgages whereby they won't review your payment amount unless you ask them to. Perhaps someone else here can confirm??

blueberrypie

Heyman wrote: »

Edit: just seen that you say the new payment amount is the same as before. I vaguely remember something with Barclays (or Woolwich) mortgages whereby they won't review your payment amount unless you ask them to. Perhaps someone else here can confirm??

When I asked them a few months ago what their usual procedure was if you made overpayments, they said they wouldn't recalculate your regular payment unless you asked them to. I don't know if this applies to a change in interest rate when the fixed-rate period ends.