How do these changes affect Barclays Bank Base Rate?
If you have a mortgage that tracks (or will track in the future) the Barclays Bank Base Rate, creating the ring-fenced bank will change your mortgage agreement.
This means your mortgage interest rate will no longer refer to Barclays Bank Base Rate and will use the rate set by the Bank of England, the Bank of England Base Rate (or in the event that the Bank of England Base Rate no longer exists, such replacement rate as the ring-fenced bank may specify).
Barclays Bank Base Rate tracks the Bank of England Base Rate, but is not always guaranteed to do so. This change itself will not change your monthly repayment, however your mortgage rate will instead track the Bank of England Base Rate.
As Barclays Bank Base Rate has been the same as the Bank of England Base Rate for many years, you should see no difference to the way you bank.
Do these changes have tax implications for residents outside of the UK?
There will be no changes in tax position as a result of ring-fencing for customers and clients who remain fully served by Barclays Bank PLC (BB PLC).
In all other cases e.g. customers and clients moving to our ring-fenced bank or customers and clients who remain served by BB PLC, but with one or more product/service moving to the ring-fenced bank, we do not believe these changes will impact your tax position. However, as Barclays does not provide tax advice, we suggest you speak to a tax advisor.
How do these changes affect cheques produced by Barclays Mortgages?
In 2018 we’ll replace Woolwich and Barclays branding with Barclays only branding within our mortgage operations team. As a result, cheques issued by our mortgage team will be Barclays only branded.
You don’t need to take any action.