I have a tracker mortgage taken out some time ago with The Woolwich
(Now Barclays). My rate is very low because it's a tracker and was
taken out when they tracked at base + 1.25%. I just got a letter that
worries me, it seems to imply that they are going to change the terms
of the agreement and put me on base + 4%. Can they do that?

On Dec 30, 1:18*pm, Bombastic wrote:
I have a tracker mortgage taken out some time ago with The Woolwich
(Now Barclays). My rate is very low because it's a tracker and was
taken out when they tracked at base + 1.25%. I just got a letter that
worries me, it seems to imply that they are going to change the terms
of the agreement and put me on base + 4%. Can they do that?

It's difficult to tell without seeing your mortgage agreement and the
letter that you've been sent.

In general mortgage lenders usually reserve the right to recall the
loan at any time. In this case they may be doing this and offering a
new loan at a significantly worse rate.

If I were in your situation (I'm on base + 0.6% from Abbey at the
moment but they show no signs of changing that.) I would get in touch
with Barclays and confirm that this is indeed what they intend to do.
If it is then I would take advice from Citizen's Advice or try and get
one of the newspaper's financial pages interested in your story. A
whiff of bad publicity for the bank might work to your advantage.

Bombastic wrote:

I have a tracker mortgage taken out some time ago with The Woolwich
(Now Barclays). My rate is very low because it's a tracker and was
taken out when they tracked at base + 1.25%. I just got a letter that
worries me, it seems to imply that they are going to change the terms
of the agreement and put me on base + 4%. Can they do that?

Tracker deals usually (though not always) come to a natural end after a
length of time which is agreed at entry, even though the term of the
mortgage may be longer, and the default on expiry is to be put on the
lenders standard rate. Could this be what is happening in your case?

Is the new rate really calculated (i.e. described to you) as base+4%, or is
it simply the lenders standard rate, which just happens to be 4.5% at the
moment?

Bombastic wrote:
I have a tracker mortgage taken out some time ago with The Woolwich
(Now Barclays). My rate is very low because it's a tracker and was
taken out when they tracked at base + 1.25%. I just got a letter that
worries me, it seems to imply that they are going to change the terms
of the agreement and put me on base + 4%. Can they do that?

Read your mortgage contract. That will tell you if they can do this.

Rob Graham

"Rob Graham" wrote in message
...
Bombastic wrote:
I have a tracker mortgage taken out some time ago with The Woolwich
(Now Barclays). My rate is very low because it's a tracker and was
taken out when they tracked at base + 1.25%. I just got a letter that
worries me, it seems to imply that they are going to change the terms
of the agreement and put me on base + 4%. Can they do that?

Read your mortgage contract. That will tell you if they can do this.

Rob Graham

and don't bother looking at the large print, it will be in the very
smallest.

On 31 Dec 2009, 06:01, "In400metreskeepright"
wrote:
"Rob Graham" wrote in message

...

Bombastic wrote:
I have a tracker mortgage taken out some time ago with TheWoolwich
(Now Barclays). My rate is very low because it's a tracker and was
taken out when they tracked at base + 1.25%. I just got a letter that
worries me, it seems to imply that they are going to change the terms
of the agreement and put me on base + 4%. Can they do that?

Read your mortgage contract. That will tell you if they can do this.

Rob Graham

and don't bother looking at the large print, it will be in the very
smallest.

Thanks Rob, I have to give them a call and see what's going on. I'll
post anything interesting.

On 31 Dec 2009, 06:01, "In400metreskeepright"
wrote:
"Rob Graham" wrote in message

...

Bombastic wrote:
I have a tracker mortgage taken out some time ago with TheWoolwich
(Now Barclays). My rate is very low because it's a tracker and was
taken out when they tracked at base + 1.25%. I just got a letter that
worries me, it seems to imply that they are going to change the terms
of the agreement and put me on base + 4%. Can they do that?

Read your mortgage contract. That will tell you if they can do this.

Rob Graham

and don't bother looking at the large print, it will be in the very
smallest.

Thanks Rob,

I had overreacted to a badly written letter. The letter was regarding
the current account linked to the mortgage account. It used a term
"The Woowich Standard Variable Rate" which I took to mean my mortgage
rate, but in fact it's the current account rate.


Thanks for respondng.

Bombastic wrote:
On 31 Dec 2009, 06:01, "In400metreskeepright"
wrote:
"Rob Graham" wrote in message

...

Bombastic wrote:
I have a tracker mortgage taken out some time ago with TheWoolwich
(Now Barclays). My rate is very low because it's a tracker and was
taken out when they tracked at base + 1.25%. I just got a letter that
worries me, it seems to imply that they are going to change the terms
of the agreement and put me on base + 4%. Can they do that?
Read your mortgage contract. That will tell you if they can do this.
Rob Graham
and don't bother looking at the large print, it will be in the very
smallest.

Thanks Rob,

I had overreacted to a badly written letter. The letter was regarding
the current account linked to the mortgage account. It used a term
"The Woowich Standard Variable Rate" which I took to mean my mortgage
rate, but in fact it's the current account rate.


Thanks for respondng.

Glad it sorted OK. I think sometimes firms send letters with subsidiary
information which does not actually apply to the recipient, but can
alarm them.

Rob