Barclays defying the benefits of a tracker mortgage
Discussion
Just received a kindly letter from Barclays. In these uncertain days it advises me that although my tracker rate has dropped by 0.5% my repayments will remain at the prior amount and I won't see any reduction in my monthly payment.
Thank you Barclays. It is this week I have seen my income drop by 85% because I'm a self-employed driving instructor who has had to self-isolate and kill my business off.
Thank you Barclays. It is this week I have seen my income drop by 85% because I'm a self-employed driving instructor who has had to self-isolate and kill my business off.
ellroy said:
Not pleasant, but I guess you’re at least paying off the capital a bit quicker.
Hope things work out for you.
Every cloud...silver lining Hope things work out for you.
. ETA: I'm probably fortunate I can cope with this situation for the time-being but others may not be so fortunate. Oh, and thanks for the sentiment!
Edited by caiss4 on Saturday 21st March 18:52
Sarnie said:
It's because there will be a floor rate.......which is the lowest they will allow the rate to drop to......it will be stated in your mortgage offer.......
You may be right Sarnie but the letter doesn't refer to such a term. It says 'You have an off-set account and your new monthly payment, as a result of this rate change, would be lower than the amount you currently pay'. And I thought that was the purpose of an off-set tracker.caiss4 said:
You may be right Sarnie but the letter doesn't refer to such a term. It says 'You have an off-set account and your new monthly payment, as a result of this rate change, would be lower than the amount you currently pay'. And I thought that was the purpose of an off-set tracker.
You need to refer to your mortgage offer, that will dictate what happens to your rate.......Sarnie said:
You need to refer to your mortgage offer, that will dictate what happens to your rate.......
No mention of a floor rate in the mortgage offer (14 years ago!). I was paying the 'new' low rate just 2 years ago before the base rate went up from 0.25% to 0.5% in 2017. Seems like the T's&C's have been changed since. TBH, no big deal as just over 3 years to run before paying it off. May still call tomorrow to find out why/when things changed.clived said:
A 3 month repayment holiday sounds like it would be much more useful to you than a rate decrease?
Hopefully that won't be necessary. I do have a rainy day fund so should be able to cover things for at least 6 months.Gassing Station | Finance | Top of Page | What's New | My Stuff