What is Barclays Bank Base Rate?

chappers · 11 January 2008 at 10:07PM

If you are concerned go elswhere as has been said Nationwide lifetime tracker is hard to beat no fees but a five year tie in.

Caro75 · 16 January 2008 at 10:57AM

I, too, am on the same BBBR+0.18% tracker mortage from Woolwich/Barclays. However I've been paying the same this month (amount taken on 15th of January) as previous months, despite the fact that the BBBR should have decreased to 5.5% on the 1st of January (according to dangers above). Any idea why this is the case? Will I get the cheaper payment next month only?

Floxxie · 17 January 2008 at 11:47AM

Hi Caro75,

I've been trying to contact Barclays on this all morning as I too had exactly the same payment go out on the 16th Jan as I did on the 16th Dec. Unfortunately as I have not been able to get through, I can't answer your question but hope somebody has been successful and can provide a response.

Floxxie.

mfhstid · 17 January 2008 at 2:35PM

Same here: I'm on BBBR+0.17, but my payment this month is the same as last.

Woolwich website currently shows BBBR as 5.5%, so not sure what's going on here.

mr_tickle_2 · 17 January 2008 at 2:40PM

My understanding is that the amount of interest you are paying will change as soon as BBBR changes, but they only review the payments you make automatically once a year (in May I think). If you do nothing, and BBBR has come down, then in May they will automatically lower your payments.
Alternatively you can ask them to alter your payments before May.

I suppose this is to simplify things, so that if there are 3 consecutive rate changes, you don't pay different payments for 3 months.

In the mean time if you don't change your payments at least you're overpaying your mortgage!

Floxxie · 17 January 2008 at 3:14PM

My mortgage offer states that:

"Changes in the Base Rate made during the month will take effect from the 1st of the following month"

therefore I would expect my payment to be reduced accordingly as the rate change took effect 7th December.

Floxxie · 17 January 2008 at 3:18PM

Sorry forgot to add that there is nothing in there about not reducing payments on a rate change or only doing so once a year.

I guess I shall have to wait for my monthly statement to see what interest rate is beign charged.

Floxxie

02skn · 17 January 2008 at 4:56PM

mfhstid wrote: »

Same here: I'm on BBBR+0.17, but my payment this month is the same as last.

Woolwich website currently shows BBBR as 5.5%, so not sure what's going on here.

If you look at the mortgage statement they sent you in September it tells you on the back that rates are reviewed once a year in September. I rang the mortgage line to enquire about the recent cut and the nice man said you will only see a change in your monthly payment once a year. If you would like your payment amended you have to ring their 8p per minute line and ask. Not really a Tracker is it!.

Floxxie · 17 January 2008 at 6:30PM

Ok, found the wording on my October annual statement:

"If you have a variable rate repayment mortgage your repayments are reviewed once a year in accordance with your terms and conditions. This review will take into account changes to Barclays Bank Base Rate (BBBR) and Woolwich Standard Variable Rate, whicih are affected by changes in the Bank of England base rate. Since your last mortgage statement the Bank of England has increased its base rate by 1%. Your revised payment reflects all interest rate changes over the last 12 months and will be applied to your mortgage account (s) in November 2007."

02skn · 17 January 2008 at 6:58PM

Floxxie wrote: »

Ok, found the wording on my October annual statement:

"If you have a variable rate repayment mortgage your repayments are reviewed once a year in accordance with your terms and conditions. This review will take into account changes to Barclays Bank Base Rate (BBBR) and Woolwich Standard Variable Rate, whicih are affected by changes in the Bank of England base rate. Since your last mortgage statement the Bank of England has increased its base rate by 1%. Your revised payment reflects all interest rate changes over the last 12 months and will be applied to your mortgage account (s) in November 2007."

I'am sure they never explained when signing for the mortgage that it would track yearly. Bit of a con really. Thinking of moving as even making overpayments has been a nightmare. Decision is who to go with next without incurring large costs.

What is Barclays Bank Base Rate?

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