MSE News: When is a tracker mortgage not a tracker?

The_J

This was their statement at the time it changed

As you can see this is a very complex area, suffice to say our trackers track the Barclays Bank Base Rate and this is the same as the Bank of England Base Rate. Furthermore, this is no foreseeable reason for the two rates to diverge, and if they were to, many other "base rate" trackers would also diverge by virtue of the definitions of "base rate" used across the industry.

In an attempt to isolate customers from this potential confusion we started using the term Bank of England base rate, but due to complex legal technicalities have reverted to Barclays Bank Base Rate.

betmunch

The_J wrote: »

This was their statement at the time it changed

Ahhhh, I must have missed that from the article.

Well, that changes everything for me, yes they should be worried, it looks a lot like what Halifax did not so long ago.

A change to the T&C's which allows a rate increase, denial it will happen, then 2 weeks later anounce its happening!

Will anyone challenge it though?

The_J

No that's not in the article. I'm not 100% sure that statement was made public and it's not a recent change (early 2008 from memory). Clearly post Lehmann and following massive base rate drops they were considering action but with the Lloyds and RBS props, significant QE and middle eastern backing they are in a solid position. I would not be concerned if I had a Woolwich tracker.

shortchanged_2

The_J wrote: »

I'm anti-debt, even though debt has made me rich via my profession I am well placed to see it's effects. It's important for people to understand that they are not entitled to debt, that they are imprisoned by it and that they should seek to remove themselves of it at the earliest convenience.

Don't make me laugh. You frequent these boards trying to get people to take out as big a mortgage as they can get.
What is it that you say, buying a house is no risk at all. That doesn't sound the words of someone who is financially prudent.

The_J

You cannot blame me or insult me for your own ignorance, lack of understanding of risk and poor life choices?

I frequent these boards giving people solutions for their problems. "As big a mortgage as they can get" is still a mortgage contract regulated by the FSA as affordable and fair to the customer. However I would not accept that I advise people to do that anyway.

betmunch

The_J wrote: »

No that's not in the article. I'm not 100% sure that statement was made public and it's not a recent change (early 2008 from memory). Clearly post Lehmann and following massive base rate drops they were considering action but with the Lloyds and RBS props, significant QE and middle eastern backing they are in a solid position. I would not be concerned if I had a Woolwich tracker.

Didnt have to worry about Woolwich back then!

Thanks for the explanation, still think its a non-story. At best a story thats 4 years too late!

Pincher

What happened with the Skipton BS?


Our SVR will never be higher than BOE+2.0% (or something like it).
Oops, we are increasing it anyway, wholesale funding, mumble, mumble, excuse, excuse, ipso facto.

Didn't some people band together to challenge it? What happened?

Morgage_Confused

Well im worried about my woolwich tracker.....on my KFI it clearly states BBBR and states it typically follows the BoE rate but isnt guaranteed to do so.
My mortgage is only about 12months old at 2.18 plus BBBR (2.68%)

Am I right in thinking what may save me is the older KFI's from other people that clearly link the BBBR and BoE as one and the same? Or should I jump ship to a "proper" tracker as soon as I can?

foreversummer

Quote from the Woolwich Intermediaries site:

http://woolwich.metafaq.com/templates/woolwich/main/answerPage?_mftvst:answerRef=%24http%3a%2f%2fapi.transversal.com%2fmfapi%2fobjectref%2fEntryStore%2fEntry%2fhttp%3a%2f%2fwww.metafaq.com%2fmfapi%2fMetafaq%2fClients%2fwoolwich%2fModules%2fmortgages%3a148592%3a0&_mftvst:moduleID=%24mortgages&_mftvst:topicID=%24&id=JO7F7O9BIBQPIR1K2ALESV8BEG

That seems like a long link - hope it will work.

HAMISH_MCTAVISH

Consumers should check their mortgage contracts carefully.

In some cases, changes to the rate may be unfair/illegal.

https://forums.moneysavingexpert.com/discussion/3920181