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  • FIRST POST
    jonjoe1969
    What is Barclays Bank Base Rate?
    • #1
    • 5th Sep 07, 6:49 PM
    What is Barclays Bank Base Rate? 5th Sep 07 at 6:49 PM
    I've just completed on three tracker mortgages with Woolwich (one residential tracking at 0.18% over base, two buy to let at 0.49% over base).

    I got back from holiday to find that all three had completed while I was away and I saw a reference in the completion documents to them tracking above the Barclays Bank Base Rate (BBBR). I've checked the key features document I referred to when I made the application and it clearly says that they would track over the Bank of England Base Rate.

    I've got to decide whether to complain; and that will involve looking at all the correspondence including the key features, the offer letter etc to see when the change occured. Woolwich certainly didn't clearly draw this important change to my attention.

    But that's not the point for now. My question is what is the BBBR? If it historically has always mirrored the Bank of England base rate then my problem isn't likely to result in me losing money. But if the BBBR fluctuates differently to BoE base rate then I'm going to be deeply unhappy.

    I suspect the bank made this change to deal with small short-term fluctuations in the availability of inter-bank funds in which case BBBR will nearly, but not quite, always mirror BoE base rates. So, I might generally not see much, if any, difference. I know that the current rate for BBBR is 5.75%, same as the BoE base rate.

    BUT - I have tried doing some research and can't find any historic data on what BBBR has been and whether it has mirrored, or nearly-mirrored the BoE base rate. Can anyone help?

    Thanks

    JJ
Page 9
    • simmotech
    • By simmotech 18th Aug 11, 12:27 PM
    • 23 Posts
    • 6 Thanks
    simmotech
    Urgently need help!
    My case with the Ombudsman is not going well, I don't think they are asking the right questions to Barclays and Barclays are just taking the !!!! with their answers as you can see below.

    I don't (and never did) have the full terms and conditions and KFI that the rest of you seem to have since it was not a full mortgage/remortage. Barclays refuse to provide copies of what the rest of you seem to have had at that time, 2006, and also from 2001 (another part of the case). They are also filibustering the Ombudsman about these documents (see last question below). Both Barclays and the Ombudman are just ignoring this thread, the video of their very own TV advert and the whole file of information I have collected - now an inch thick!

    Unless I can come up with something in the next week or so, the Ombudsman's provisional findings will become final therefore I am willing to pay 20 to anyone who can send/email me a photocopy of their T&Cs/KFI/whatever from 2006 which shows the infamous BoE clause. If it contains any personal information, just redact it out on the copy. Grateful for any help!

    Cheers
    Simon


    Email from Case Review Adjudicator



    Dear Mr Hewitt


    Thank you for your e-mail, which has been added to your file. I have attached a copy of the questions that Barclays has been asked during our investigation together with its responses.



    Yours sincerely




    XXXXX XXXXXXX

    Case Review Adjudicator






    Mr Hewitt has supplied a number of website links relating to the information Barclays was giving about its base rate (BBBR) around 2007. I understand that you have already received these in an email from Mr Hewitt when he originally brought his complaint. I am also attaching a further link which he has recently sent to us relating to the advertising of the rate. The ombudsman has asked for Barclays' comments on its advertising of the rate zzz.forums.moneysavingexpert.com/showthread.php?t=1456333

    Theattached website has no affiliation to Barclays, therefore, I do not think it is appropriate to comment.
    I am also attaching a link to a Barclays advert which aired in 2007 which appears to show that it was marketing its rate as tracking the BoE base rate. Please can I have your comments on this
    zzz.tellyads.com/show_movie.php?filename=TA2927

    Again, this website has no affiliation to Barclays and therefore I do not think it is appropriate for me to comment.
    Does Barclays accept that in 2007 it said its rate was the same as BoE base rate and did it market its products a tracking BoE, rather than its own rate? When did it stop doing this?

    As stated in my e-mail dated6April to Mr XXXXX, Barclays Bank Base Rate (BBBR) has tracked the Bank of England Base Rate(BofEBR)since the start of the 20thCentury and there hasnot, to ourknowledge,been an exception to this.
    Was it likely that in 2006 Barclays staff would have told enquiring customers that its tracker mortgage tracked BoE rate?

    Our staff would have informed any customer making an enquiry that a Barclays Tracker Mortgage tracked BBBR, which would be disclosed inthe Key Facts Illustration and the Mortgage Offer.
    Please can Barclays also provide a complete copy of the September 2001 edition of the terms and conditions of the mortgage.

    Unfortunately, we do not have any additional information to the 2001 Mortgage Terms and Conditions. However, as I have said previously, the Conditions applicable to Mr Hewitt and Ms Storms Mortgage is attached to their Mortgage Offer, which was attached to mye-mail of 6 April. Condition 7 states:The interest rate charged shall always be 0.75% above the Barclays Bank Base Rate.

    While I appreciate Mr Hewitt & Ms Storms concerns, the interest of their Tracker Mortgage hasbeencharged at BBBR, which is the same as the BofEBR. BBBRis a rate set by Barclays Bank PLC, which typicallyfollows the BofEBR but it is not guaranteed to do so. I do not see the relevance of Mr Hewitt & Ms Stormsconcernsin this respect because the interest rate of their Mortgage has moved in line with each change to the BofEBR. The fact the Bank uses its own rate (BBBR) is for commercial purposes, in view of anyunforeseeneventuality that may occur within the property market.
    • MarkyMarkD
    • By MarkyMarkD 4th Sep 11, 1:40 PM
    • 9,795 Posts
    • 4,216 Thanks
    MarkyMarkD
    Given that your whole concern is spurious, I am scarcely surprised that your FOS case is not going well.

    Why don't you stop wasting FOS's time (and taxpayers' money) and leave them time to focus on individuals who have actually lost out financially?
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