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Woolwich Lifetime tracker mortgage

Last post Tue, Feb 10 2009, 8:24 PM by Phil_W. 81 replies.
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  •  Tue, Feb 10 2009, 8:24 PM

    Re: Woolwich Lifetime tracker mortgage

    GlitterSlice,

    check out http://www.moneyextra.com/mortgages/calculators/overpaying-your-mortgage.php,

    this allows you to put in 1), 2) and for 3) you will have to play around with the value - it gives you the amount payable due to the interest, add the overpayment to make up your fixed monthly payment. The results give you interest saved and length to pay the dept off.

    this may be something like what you are looking for.

    • Post Points: 35
  •  Mon, Feb 09 2009, 5:39 PM

    Re: Woolwich Lifetime tracker mortgage

    Yes SnowdonDreamer I think we have covered this subject in its entirety. However.....

    .... Has anyone come up with an online calculator that tells you how long you have left on your mortgage based on 1) an outstanding balance, 2) a constant interest rate and 3) fixed monthly payments. All the calculators I have found calculate payment amounts based on a term and interest rate - but I want something the other way round!

    Thanks
    • Post Points: 50
  •  Mon, Feb 09 2009, 2:27 PM

    Big Smile [:D] Re: Woolwich Lifetime tracker mortgage

    Reckon this subject is about covered now, don't you? We've got a good deal, one of if not the best on the market. Job Done!

    What do you think of the price of fish then? Lol.

    • Post Points: 20
  •  Mon, Feb 09 2009, 1:09 PM

    Re: Woolwich Lifetime tracker mortgage

    Happycat you are right! I got it wrong. This is great news. Good on you Woolwich/Barclays!

    • Post Points: 20
  •  Mon, Feb 09 2009, 7:39 AM

    Re: Woolwich Lifetime tracker mortgage

    My confirmation letters received after I request a reduction in my payment do show the previous interest rate. I have not yet queried this with Barclays but my guess is that they do not reduce the payment until at least one month after the end of the month in which there is a BOE interest rate cut. This is despite the clear message that your payments will go down ffrom the first of the next month after a BOE reduction.

    I have stated several times in my posts that the Woolwich tracker that I have is a great product but the way that it was marketed to me and the uneccesary little tricks like the above just reinforce the public perception of bankers being as trusted as journalists and politicians.

    I will be paying off my mortgage in 3 years on retirment so I take the payment reduction every time since at the moment I can get my wife to invest the money and earn a higher interest rate (tax free) than the mortgage interest rate. I agree with other postings that if you have many years left on your morrtgage and can afford to overpay then this is a good strategy (after you have paid off any higher interest borrowings such as credit cards).

    • Post Points: 5
  •  Sun, Feb 08 2009, 10:50 PM

    Re: Woolwich Lifetime tracker mortgage

    Dear Joannakd,

    Many thanks for your help. The FSA link was very useful. My miscalculations were due to my sausage fingers on the calculator (or thats my excuse anyway!!).

    Thanks again.

    • Post Points: 5
  •  Sun, Feb 08 2009, 4:55 PM

    Re: Woolwich Lifetime tracker mortgage

    GlitterSlice- appreciate your comments and hopefully a few more people will benefit from your post. For those without knowledge of excel, all you need(as mentioned in a previous post) is a calculator to work(aproximately) out how much of your monthly payment is interest. My main concern about the current low interest rates is that those people who have had their payments reduced every time, unless they use the extra money in a positive manner ie pay off other debt- are going to find it hard, when interest rates go up, which they inevitably will, to find the extra money needed to cover a new higher mortgage payment.
    • Post Points: 5
  •  Sat, Feb 07 2009, 12:41 PM

    Re: Woolwich Lifetime tracker mortgage

    Dear Stellaexpress,

    Without knowing your situation i.e. how much mortgage and how many years left.....

    But assuming you owe £200k and 20 yrs left.....then I assume you are paying approx. £936/mth on repayment @ 1.18%
    Assuming the rate does drop to 0.18% (i.e. BoE=0%), then the payment will drop to £848/mth of which roughly £30 is interest(ish)..
    You may have got your commas, decimal points muddled.....not sure without seeing the actualy formula you use.

    However, Dummie's guide (no offence) is on the FSA website.....
    http://www.moneymadeclear.fsa.gov.uk/tools.aspx?Tool=mortgage_calculator

    Re. letter - I get one....eventually and it does state that the CURRENT rate is £X at x%, but your new payment is £Y - but I don't recall it states the %....

    Hope that helps.

    • Post Points: 35
  •  Sat, Feb 07 2009, 9:51 AM

    Re: Woolwich Lifetime tracker mortgage

    Dear Spreadsheet Monkeys,

    Unfortunately, maths is not my best subject by far (as you will see). I am very pleased with the 3 Woolwich tracker mortgages I have and all the advice passed on on this forum is spot.

    Although the interest rate has gone down by 75% approx over the past 9 months (and i have always requested to reduce my payments follwing a BoE rate cut - needs must!) my calculations appear to show that my overall interest paid had gone down by 55%. Is this due to compound rates, APR, MFI or RAC or whatever the jargon is?!! My mortgage goes down by about £70 with each o.5 rate cut (not complaining?) but if rates go down to 0% (+ 0.18% tracker product) another £140 reduction will still leave me paying at least £300 interst each month (on top of the capital repayment) by my calculations! Could you confirm to me the formula for working this out etc, as I'm sure its my calculation and not the Woolwich.

    Many thanks!!

    Also does anyone else get the confirmation letter from the Woolwich (following a request for a relcalculation follwoing a base rate cut) confirming the new amount to be paid each month but with the interest rate stated as the one before the base rate cut! I have queried this with the woolwich on several occasions and they have said not to take any notice of this as the rate quoted is wrong and a result of their systems being a few weeks behind! However, they confirm the new monthly payment quoted takes into account the latest base rate cut.......... perhaps this explains my query to the Spreadsheet monkeys and the Woolwich are having me over!! Help!!

    • Post Points: 20
  •  Sat, Feb 07 2009, 1:24 AM

    Re: Woolwich Lifetime tracker mortgage

    Dear GlitterSlice,

    I must be as sad as you. I, too, run an Excel spreadsheet and know how much interest one is paying on a daily basis. To the point I have created a chart like the ones you see on the offset websites and I compare the original scenario (with no overpayments) compared with my overpayments at different times and see how much time and interest I will have saved over the lifetime of my mortgage.

    I should rename myself as Spreadsheet Monkey (no offence to monkeys intended!)

    PS I am happy with my mortgage....

    • Post Points: 20
  •  Fri, Feb 06 2009, 8:25 PM

    Re: Woolwich Lifetime tracker mortgage

    Thank you HAPPYKAT for your consistent good advise in this forum. Don't worry some of us get what you say!!! You are a very tolerant person indeed.

    I have the +0.19% Lifetime tracker repayment product taken out in October 2006 - £176,300 over 25 years. I am delighted with the mortgage and with the Woolwich in general who have been fair throughout. At the time of writing BoE rates have just dropped to 1% and my mortgage is now 1.19% from 1 March.

    Why people are moaning about the Woolwich is beyond me as, to date, they have passed on every cut, you have the consistency of knowing your annual mortgage payments so can budget OR if you wish have the option of reducing your payments (by telephone) if rates drop. Further the mortgage is flexible and there were no application fees (when I applied).

    I have Barclays Online Banking and I can see my mortgage balance at any time - this is useful to see the value and effect of making overpayments to your mortgage. More detail on this in a minute...

    My advise is that you should try and keep your payments at the amount given to you in your last annual review - as, by now, you will be making substantial capital payments off your balance each month - although I do appreciate that some on tight budgets need mortgage payment reductions in order to survive in today's world (also I agree with comments about paying off other expensive debts first - but make sure you do!!!). However there are some lost causes who simply look at the amount they pay each month and think that's it - and do not think about the wider picture with regard to their mortgage balance!!!

    I am sad enough to track my mortgage in Excel each month - and you will see why I am very happy and making hay whilst the sun is shining!!!

    This is how well I have done in the past few months:

    Nov 08 - Interest element was 68.9% of my monthly payment, capital being 31.1%(my mortgage rate 4.69%)
    Dec 08 - Interest was 42.9%, capital 57.1% (my rate 3.19%)
    Jan 08 - Interest was 29.4%, 70.6% (my rate 2.19%)

    Over the next two months I will see the results of the two further 0.5% cuts - there is a lag as I have to wait until the start of March to see how my mortgage did in Feb at 1.69% and 1 April to see the March's figures at 1.19%.etc...

    One good way of thinking about this is looking at how much interest you pay every day on your mortgage - one year ago I was paying just under £27 EVERY SINGLE DAY in interest on my mortgage, after the 1 March this daily interest charge drops for me to around £4 (yes you did read that right!!). I am keeping up my repayments at previous levels so every day I am paying off capital at an additional £22-£23 every day on top of my exist capital payment levels (these were about £11 a day before the recent cuts), multiply this value by the number of days in a month and you will see that I am now reducing my mortgage capital by over £1,000 each month rather than just £350. Just think how many years will be shed off my mortgage while rates stay this low!!!

    I hope this post helps people see the benefits of keeping up your original payments.

    Also has anyone thought that the Woolwich/Barclays may actually be happy about their customers paying off their mortgages so quickly - think of all the extra cash flowing into Barclays from mortgage repayments - don't the banks want cash at the moment and to reduce their risk levels????

    Be happy everyone you have an amazing mortgage deal.



    • Post Points: 35
  •  Fri, Feb 06 2009, 2:56 AM

    Re: Woolwich Lifetime tracker mortgage

    Dear Grumpy Old Man et al,

    I have a similar mortgage with Barclays/Woolwich.

    In answer to your questions:

    (i) and (ii) interest-only mortgages are naturally adjusted due to interest fluctuations; what's the point of lowering your repayment mortgage payments - if you can afford to repay at the higher level, then you pay off your mortgage quicker. I have other debt (which is now higher than my mortgage rate) so I manually ring up every month and ask for payment adjustment. It is actually in the customer's interest to repay one's mortgage cheaper.
    Take the reverse scenario and they did amend everyone's repayment payment. Many people would like to keep it as it is as people budget their monthly outgoings.

    (iii) By the time they send you the anniversary statement, it is too late for the change to occur.

    (iv) Technically it's correct.

    http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?site=pfs&task=popup1group&value=15396 - it is now 1% !! It's official !

    I have no issue as such...

    • Post Points: 5
  •  Fri, Feb 06 2009, 12:23 AM

    Re: Woolwich Lifetime tracker mortgage

    Hardworker, have you read it right?. Woolwich has today passed on the full half a percent to all tracker mortgages, yet again, they have not failed anybody with a Tracker Mortgage. Be grateful that you are not with a lender like Nationwide , who did not pass on the last cut and won't pass on this one, as they have capped their rate at 2%. It is win, win with Woolwich as anybody who has taken out a fixed rate with The Woolwich in the past 2 years will automatically revert to a .95 over base tracker, when their fixed rate ends. Reading some of the threads on this subject, I feel that even it base rates dropped to 0% and some Woolwich customers had to pay interest at .17%, they would still moan. Cheer up everyone and stop moaning.!
    • Post Points: 35
  •  Thu, Feb 05 2009, 5:31 PM

    Re: Woolwich Lifetime tracker mortgage

    The terms of my Tracker 0.19% above barclays bank base rate (bbbr) states that it will always track the bbbr. it also states that the bbbr follows the bank of england base rate. (although Barclays have re-worded this on the web site). The current bbbr can be found at http://www.personal.barclays.co.uk/BRC1/jsp/brccontrol?site=pfs&task=popup1group&value=15396.

    I called to check what my current interest rate is and they have stated 1.69%.

    Hardworker, are you on the same life time tracker as the people writing here.

    • Post Points: 20
  •  Thu, Feb 05 2009, 3:37 PM

    Re: Woolwich Lifetime tracker mortgage

    grumpy-old-man:

    My concern is that Barclays will stop linking Barclays Base Rate to the Bank of England Base Rate and try to use this as a mechanism to prevent tracker mortgage rates being reduced if the 1% bank rate that forecasters promise in 2009 happens.

    Barclays/Woolwich seem have done this. I received a letter in January informing me of a BBR drop to 1.5% (identical to Base Rate). A few weeks later I received a letter informing me of an increase to 2% although Bank of England base rate had not changed. Can I not expect that my tracker rate follows at least the trend of the Bank of England base rate and not the opposite?

    • Post Points: 20
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