Woolwich change variable rate terms and conditions as fixed rate comes to an end

foreversummer

Daisy1992 wrote: »

Good to see this debate on this forum..

I signed upto a lifetime tracker rate with Woolwich back in 2006. The reason being was that I thought that I did not to have to keep switching banks every few years and I would just ride the BoE rate at my risk plus a set percentage. I have also just received a letter from Barclays that states the change to the SVR rate to 4 point something from 10th Feb. I signed a deal with the Woolwich back in 2006 that stated "A Variable Rate which is 0.39% above Barclays PLCs Base Rate, currently (per 2006) 5%, for the whole term. Changes in the base rate made during the following months will apply". I have borne the risk of paying increased mortgage payments as interest rates have increased but as they have decreased, Barclays have decided to make massive changes to interests rates. Does anyone else have a similar mortgage and in a similar situation.. advice - should I complain??
Based on the letter I will have to increase my mortgage payments by about 8 fold from 10th Feb... I do not think that this is fair or ethical.. but not have dealt with the FSA or Financial Ombudsman on this matter.. I fear that going to them will only act in the interest of the Banks and that their decision is generally final.. but even then I understand that it is not legally enforceable??
Susan

If you are on the Barclays Bank Base Rate Lifetime Tracker this change does not affect you!

This change is to do with their Standard Variable Rate which will only affect you if you have additional borrowing on your reserve account.

Foreversummer

Daisy1992

Thanks Foreversummer.. hopefully this is true..

foreversummer wrote: »

If you are on the Barclays Bank Base Rate Lifetime Tracker this change does not affect you!

This change is to do with their Standard Variable Rate which will only affect you if you have additional borrowing on your reserve account.

Foreversummer

blueberrypie

Daisy1992 wrote: »

I signed upto a lifetime tracker rate with Woolwich back in 2006.

Based on the letter I will have to increase my mortgage payments by about 8 fold from 10th Feb...

As foreversummer has said, the change in how the SVR is calculated does not affect your mortgage payments, because you are not on SVR. You are on a tracker mortgage. The reason you have been notified of the change in how SVR is calculated is that if you have and use the overdraft on your Mortgage Reserve Current Account (the current account you hold with Barclays which is related to your mortgage), *that* borrowing will be at SVR.

Have a look at the thread that opinions4u linked to in the second post in this thread.

leicsmark

Its interesting that Standard Life have been taken over by Barclays this month and a huge number of mortgage customers are currently on their SVR (5.34%), so if these two SVR rates align then lots of people will be affected by the +4.49%. Are these two moves related?

Wilfieboy

Hi

It's states in our letter that we have received that they written to us earlier in the year to let us know that changes would be made to our account. Does anybody know when these letters were sent out as I did not receive one?

We have had our mortgage since 2004 and for the first time drew on my reserve account in September 2009 so it looks like we have had no benefit whatsover from the product we were sold. What we are thinking is when we withdrew on the reserve in September Barclays should of informed us of what they were going to do and this is why we believe we did not receive a letter. In September when we decided to draw on the reserve we contacted the Woolwich to check the status of the payments but nobody informed us of the changes to come. We are thinking that these decisions were made before September?

Any info would be appreciated....