Woolwich Remortgage Barclays Bank Base Rate!! not BoEBR

dennyboy

just in the process of remortgaging as my fixed deal expires. Managed to get in on the Woolwich life time tracker at BBBR +0.19 with no fees. What shocked me is, I never even noticed that BBBR was based on the Barclays Bank Base Rate, I always thought tracker mortgages were tracking the Bank of England Base Rate!! anyways after much consideration and research, I believe the BBBR has for several years matched the BoEBR, so I hope I don't have any shocks after I remortgage and get a letter from Barclays saying their BBBR has gone up to 20% as they want more dosh:rolleyes: I've decide to stay with this as their are no redemtion penalties on this mortgage, thats the only real reason. Other than that I wouldn't trust it.

Anyone else realised this when applying or do I live in my own little dumb world of not really looking at detail, when I thought I had cleverly scrutinised the document:rolleyes:

mad

Hi Dan

I have just moved my Woolwich fixed deal mortgage to this life time tracker. I realised it was based on the BBBR but after making a few enquiries found that the rate had been the same as the BoEBR for some time. One of the reasons I think they would find it dificult to change their base rate is simply down to competition i.e. if they hike it up they will lose business. lThe thing is there is no tie in and resemption penalties so if they make any crafty moves I can easily get out. I believe there would be a final repayment fee though of about £275 if I moved.

The other part of my logic was that I was moving to a competitive rate (Currently 4.94%) and although we are expecting interest rates to go up again in November it will still be competitive. I also believe you can pay off lumps sums at no penalty, but would need to check my small print again.

There are lower fixed deals around which might protect you from the rise, but most are short term and the fees are exorbitant in some instances, not to mention all the hastle of changing providers. Anyway for Woolwich customers looking to change I think it is quite a good deal and pretty hastle free and for those who want a fixed rate I think they are still offering a ten year fix at a pretty competitive rate.

Anyway before I get told off by all the Mortgage advisers, I will shut up. The deal is right for me at the moment and if it is the right thing for you that counts. Might still be worth checking with a whole of market adviser though?

If anyone has anything Dan or I should be worried about please let us know

dennyboy

Hi mad
I was thinking exactly the same as you. I think its a very competitive deal having a tracker mortgage, even with the expected rise next month. and maybe one in the following months. I reckon they will go down again anyway early 2008, but thats just my opinion.

I have had fixed rate mortgages for the past 3 remortgages, and I reckon I have more than overpaid the greedy banks, so fed up with this option! Plus I know I can go to 9% interest rates before i would have to 'eat my hat' and get a fix. So this is another reason for me.

Think i'll keep this mortgage for a few years now as well, as they seem to be adding very large fees to remortgages, trend that could get worse. Most people with a fix deal will probably have to remortgage again in 2 - 3 years with maybe even higher fees than present. Plus remortgaging, I always seem to add a bit more on, after doing well reducing it!

The other point I forgot to mention, I know Barclays have alot of savings accounts with very large sums of money in them, which are also linked to the BBBR + x%. Therefore if Barclays put up their rate they would have to pay their savers alot more in interest. I am am almost sure there is more money in savings accounts than owed in mortgages with Barclays. So I think the chances of them uping the rate above the BoEBR is slim. Even if they do as Duncan Bannatyne regulary says on Dragons Den "i'm Ouwt":rotfl:

TEDDYRUKSPIN

Due to competition and the possible hike in interest rates, the woolwich have the choice of upping the rate as high as they want. Basically the can up it 0.25% or even like 0.39%.. All upto them.. Its a risk that you guys/gals have chosen and should understand that it's still the cheapest in the market for the time being. If it gets bad, just jump ship.

Xbigman

I don't think there is much risk of losing out with the separate barclays base rate. It appears that it is primarily to protect Barclays against extremes of interest rates. IE our 15% ERM disaster rate or the more recent Japan style 1% rate (or did it get to 0%?). Unless Barclays gets bought out by the yanks its safe.
Regards



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