What is Barclays Bank Base Rate?

bengee1977

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.

payless

bengee1977 wrote: »

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.

that may be the case now.. but up yntil this week read something else

daveyjp

If it tracks the BOE rate why do Barclays not simply state this, rather than complicate matters by introducing a Barclays Bank Base Rate? I suspect they ahve done it for a reason.

Abbey state it tracks BOE base rate, with a rider to cover the BOE rate not being the national rate i.e. if the UK joins the Eurozone.

alphonet

I agree that if you are an existing customer and it is in your terms and conditions that Barclays explicitly track the BOE rate then Barclays should be legally committed, but they certainly appear to be looking to "try it on". Maybe the intent is only to target the new customers.

What worries me is that Barclays told me today that they have the right to change their terms and conditions. I havent looked to see if they have such provision , but I doubt they could make any such material change and certainly not without proper notice.

I suggest to log a formal complaint with Barclays on 0800 282 390. They are obliged by the FSA to (quote)

• within 4 weeks of receiving the complaint, the firm must issue a written response or a holding reply; and
• within 8 weeks of receiving the complaint, the firm must issue a written response or reply informing the complainant of the reason for delay, expected date of final response and right to go to FOS.

...then you can go to Ombudsman, if need be;

alphonet

daveyjp wrote: »

If it tracks the BOE rate why do Barclays not simply state this, rather than complicate matters by introducing a Barclays Bank Base Rate? I suspect they ahve done it for a reason.
.

...Probably becuase as an earlier poster mentioned, that his rate change would take effect on 1st of following month. Also, e.g. Barclays change the repayment "automatically" only once a year*. For these reasons eg the Barclays Bank Base rate would "track" the BoE rate but not necessarily be the same on the day.

(*though interest is calculated properly so you are only paying down your mortgage faster)

That is my view of history, but Barclays now seem to be trying something new altogether by saying that their tracker is not "guaranteed" to track at all!!!

trets77

okay they have reduced the BBBR to 2% as of today , but do they think they would be able to get away with just changing the terms and conditions if it gets too low and people would not take them to FSA ect .


Nationwide Tracker had a collar on, and they removed that so i would say that the chances of Barclays trying to squirm out of the agreement they made when they sold me a tracker mortgage are small . The money sections of newspapers would have a field day.

MarkyMarkD

I can't believe that this thread is still going on.

When will people just stop worrying and accept that, effectively, their mortgage rate is linked to BoE base rate.

Is the fact that BBBR is still equal to BoE Base Rate at 2% not enough for you all?

trets77

MarkyMarkD wrote: »

I can't believe that this thread is still going on.

When will people just stop worrying and accept that, effectively, their mortgage rate is linked to BoE base rate.

Is the fact that BBBR is still equal to BoE Base Rate at 2% not enough for you all?

no it is not.

why not ? because no one can get a straight answer out of them when they call them up and they have tried to change the defination of what the BBBR is without advising anyone (there own staff included)

call me cynical ...but it smells like the start of a attempt to change the playing field now they not winning . if is this not the case why the change ?

hope we are all wrong , but expect me and others to raise an almighty stink /fight if we are not.

PeterBalham

I took out two buy to let remortgages with the Woolwich in MArch 2008 and they were both at BBBR+0.49%.

I cant find the terms and conditions with these mortgages.

It seems that many of you are "covered" as your T&C specify BBBR is the same as base rate.

Any idea how I find out what the T&C were in MArch 2008 for a BBBR buy to let mortgage

MarkyMarkD

They haven't changed the definition. It's always been Barclays' own base rate, and that's never been guaranteed to equal BoE base rate.

A few points:

(1) Barclays' glossary says or said "Barclays Bank Base Rate follows the Bank of England Base Rate" - that doesn't say "is equal to", it says "follows". That could mean anything, if you take it to extremes;
(2) Another post on the other thread states that the mortgage KFIs actually say that although the mortgage is linked to BBBR, that actually means (for the purpose of determining the mortgage rate) BoEBR.

I don't have easy access to my Woolwich mortgage KFI but I will have a look at it next weekend if I remember. It would be better for people to check their individual KFIs rather than to pursue a pointless wondering exercise via this thread, don't you think?

Peter - I am rather worried about your BTL business if you can't find your mortgage documentation from 9 months ago!