What is Barclays Bank Base Rate?

philswannie

MarkyMarkD wrote: »

Contrary to what Philswannie says, I would suggest that hassling Barclays about a hypothetical problem which isn't going to arise, is a waste of your and their time.

What's the worst that could happen? You could have to pay 2.74% (or similar) on your mortgage instead of 1.74% (or whatever) for a little while - or make that the 10 minutes until the FSA stamp on them if your KFI or attachments state that BBBR=BoeBR for the purpose of your mortgage.

If your mortgage details do not state that, then BBBR can be whatever Barclays choose. Arguing the toss with them whilst it isn't an issue won't make them change the position.

Obviously MarkyMarkD isnt familiar with one of the main principles of the FSA which is Treating Customers Fairly (TCF), Barclays cannot simply change definitions as they like, this in my opinion is clearly unfair !

He's probably wasted more time typing his answers on here than it took me to register a complaint with Barclays !! My viewpoint is, what is there to lose by not raising it as an issue now, before it becomes a problem. His argument is why do something now, wait until its a problem, then pay more than you have to and try and resolve it.

Two different viewpoints, but once the issue has been raised Barclays have to look at it, regardless of whether 1 person or 100 people make a complaint.

trets77

well lets see what happens on Thursday.

i think most commentators are predicting at least a 0.5% cut . any failure to lower thier rate will result in a immediate complaint to FSA .

you have been warned Barclays !!!

MarkyMarkD

Philswannie

Obviously I understand TCF, I would suggest at least as well as you.

Barclays haven't treated anyone unfairly by changing a definition on their website. That hasn't cost anyone a single penny.

They would only be treating customers unfairly if they charged them an amount which was different to what they'd contractually agreed to. And they haven't, yet. I'd suggest that they are not going to, either.

Complain away, if it pleases you to make spurious complaints to which there is no rational useful response from Barclays. All Barclays can say is either "your mortgage is contractually linked to BoE base rate" (which you would know already, if that's what your documentation says, as mine does) or "your mortgage is linked to BBBR and that may not be the same as BoE base rate".

I'll eat my hat if they write back to you saying the latter.

But even if they do, it isn't going to be grounds for taking the matter anywhere else, because you will be trying to claim for some putative future lack of compliance with your mortgage contract, not for something which has actually occurred.

I don't accept that what trets77 says is correct.

The old Barclays mortgage contracts state in the KFI that the mortgage is linked to BBBR, but then contradict that elsewhere by saying that where it says BBBR it means BoEBR. That means that they could (if they wanted) fail to reduce BBBR in line with BoEBR, but it wouldn't affect their old mortgage contracts. So, it isn't a failure to reduce BBBR which would trigger any complaint, it would be a failure to reduce the rate applicable to your mortgage which you likely wouldn't know until around the end of January (unless you phone and ask, I suppose).

I shall just sit and wait for them to write to me at the end of January with my new February payment due.

trets77

MarkyMarkD wrote: »

Philswannie

Obviously I understand TCF, I would suggest at least as well as you.

Barclays haven't treated anyone unfairly by changing a definition on their website. That hasn't cost anyone a single penny.

They would only be treating customers unfairly if they charged them an amount which was different to what they'd contractually agreed to. And they haven't, yet. I'd suggest that they are not going to, either.

Complain away, if it pleases you to make spurious complaints to which there is no rational useful response from Barclays. All Barclays can say is either "your mortgage is contractually linked to BoE base rate" (which you would know already, if that's what your documentation says, as mine does) or "your mortgage is linked to BBBR and that may not be the same as BoE base rate".

I'll eat my hat if they write back to you saying the latter.

But even if they do, it isn't going to be grounds for taking the matter anywhere else, because you will be trying to claim for some putative future lack of compliance with your mortgage contract, not for something which has actually occurred.

I don't accept that what trets77 says is correct.

The old Barclays mortgage contracts state in the KFI that the mortgage is linked to BBBR, but then contradict that elsewhere by saying that where it says BBBR it means BoEBR. That means that they could (if they wanted) fail to reduce BBBR in line with BoEBR, but it wouldn't affect their old mortgage contracts. So, it isn't a failure to reduce BBBR which would trigger any complaint, it would be a failure to reduce the rate applicable to your mortgage which you likely wouldn't know until around the end of January (unless you phone and ask, I suppose).

I shall just sit and wait for them to write to me at the end of January with my new February payment due.

fair point . i really do not see them do anything other than follow the BofE base rate though.

Palm_Centro

I'm on the +0.18% deal aswell.

Eydon

Looks like there are two definitions of the BBBR then because this was taken from their Mortgage Glossary (http://www.woolwich.co.uk/mortgages/mortgage-glossary.html#b) today - I know it's a link to The Woolwich, but that's where you get taken to if you click on Barclays Bank Base Rate on the Barclays website...

"Barclays Bank Base Rate
Barclays Bank Base Rate follows the Bank of England Base Rate, which can go up or down and is announced by the Bank of England's Monetary Policy Committee every month."

but we still have the new definition on the Barclays Bank Base Rate page (http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?site=pfs&task=popup1group&value=15396)...

"Barclays Bank Base Rate typically follows the Bank of England Base Rate but it is not guaranteed to do so. The Bank of England Base Rate can go up or down and is announced by the Bank of England's Monetary Policy Committee every month."

So even Barclays can't decide what the definition of the BBBR is.

I think if push comes to shove, they'll have a hard time defending any decision not to follow the BoEBR for their mortgages, since they are provided by The Woolwich, and so their definition should be taken as the correct one IMHO

bluestates

I've read numerous references in this thread to BBBR changing on the 1st of the month following a change. Has anyone else come across terms stating that the change takes effect from the first available payment date i.e. usually the 16th?

Eydon

Eydon wrote: »

Looks like there are two definitions of the BBBR then because this was taken from their Mortgage Glossary (http://www.woolwich.co.uk/mortgages/mortgage-glossary.html#b) today - I know it's a link to The Woolwich, but that's where you get taken to if you click on Barclays Bank Base Rate on the Barclays website...

"Barclays Bank Base Rate
Barclays Bank Base Rate follows the Bank of England Base Rate, which can go up or down and is announced by the Bank of England's Monetary Policy Committee every month."

but we still have the new definition on the Barclays Bank Base Rate page (http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?site=pfs&task=popup1group&value=15396)...

"Barclays Bank Base Rate typically follows the Bank of England Base Rate but it is not guaranteed to do so. The Bank of England Base Rate can go up or down and is announced by the Bank of England's Monetary Policy Committee every month."

So even Barclays can't decide what the definition of the BBBR is.

I think if push comes to shove, they'll have a hard time defending any decision not to follow the BoEBR for their mortgages, since they are provided by The Woolwich, and so their definition should be taken as the correct one IMHO

Well what a surprise. Having posted the above, Barclays have now updated their definition of the BBBR on the Woolwich pages as well. Glad to see that they monitor internet forums

foreversummer

According to the Woolwich customer helpline, they are passing on the 0.5% rate cut to all existing tracker customers.

Foreversummer

Walaboobah

Yep, now down to 1.5% - luvvly jubbly

http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?site=pfs&task=popup1group&value=15396