Negative Interest Rates

rothers

Hello, I’m in the very fortunate position of having a lifetime tracker with Barclays which tracks at 0.17% over the BoE Base Rate. Nowhere in my mortgage offer does it mention what happens if interest rates turn negative as they may well do in the current climate. 

Is it actually possible that they may pay me to lend me money?? Where would I find the clause which prevents that if it exists?
Thanks for any responses. 

csgohan4

depends on your T+C, Most have a floor which the interest rate will not go below. 

rothers

csgohan4 said:

depends on your T+C, Most have a floor which the interest rate will not go below. 

That’s what I expected but it’s not in the offer. Would the Ts & Cs be on the Barclays website?
Cheers

csgohan4

rothers said:

csgohan4 said:

depends on your T+C, Most have a floor which the interest rate will not go below. 

That’s what I expected but it’s not in the offer. Would the Ts & Cs be on the Barclays website?
Cheers

if yours has no floor, then negative interest rates will benefit you. Mine has a floor

rothers

Is the floor on yours 0%? 

Dandytf

csgohan4 said:

depends on your T+C, Most have a floor which the interest rate will not go below. 

Current 1.34% until 2021,

getmore4less

I don't recall the barclays tracker/offset  around the time the base + 0.19% were about having a floor but a lot are BBBR not the BOEBR so they can put a floor on. 

[Deleted User]

When i worked in Halifax i came across quite a few people who had trackers around the financial crash in 2008/2009. They went in to negative rates and the bank were crediting their mortgage each month with an interest payment.  
The ones on capital repayment just had a reduction in payment but the ones on interest only had a big issue as the direct debits stopped requesting payments and people were having missed payments marked on their credit files.   People ended up having to make £1 payments to just have the system work properly.  

Im sure its a smarter system now than it used to be but on your original question, yes the lender would be paying you. They probably wont actually give you money but will probably pay it in to your mortgage account

Getting_greyer

Imagine getting paid to have a mortgage.  
Tbf if your interest rate is below inflation its negative in real terms anyway. 

grumiofoundation

Getting_greyer said:

Imagine getting paid to have a mortgage.  
Tbf if your interest rate is below inflation its negative in real terms anyway. 

https://www.theguardian.com/money/2019/aug/13/danish-bank-launches-worlds-first-negative-interest-rate-mortgage

(over 1 year old)

rothers

getmore4less said:

I don't recall the barclays tracker/offset  around the time the base + 0.19% were about having a floor but a lot are BBBR not the BOEBR so they can put a floor on. 

I’ve got it in my documentation that any reference to the BBBR should be taken to mean the BoEBR.