The One account raising rates

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thecasementkid
thecasementkid Posts: 45 Forumite
in Mortgages & endowments
Had a letter this morning from The One Account advising that from 1st May our interest rate is increasing by 0.25%.
Apparently their borrowing interest rates have increased!!
Anyone else had a similar letter??:mad:
«134

Comments

  • Rainbowsend_2
    Rainbowsend_2 Posts: 10 Forumite
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    Yes we have too!

    VERY unhappy with their decision but as we plan to move soon will be shot of them hopefully. :mad:
    Really want to be MF this year..bring it on
  • Rainbowsend_2
    Rainbowsend_2 Posts: 10 Forumite
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    It's funny how they don't 'reduce' their rates when the borrowing costs have gone down !!
    Really want to be MF this year..bring it on
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    Can't believe there are people still with this product.

    They have been fleesing their customers for ages

    There have been loads of cheaper offset options for a few years now and plenty of low fee offers about to make the move cheap even for those with smaller loans.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
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    getmore4less wrote: »
    Can't believe there are people still with this product.

    They have been fleesing their customers for ages

    There have been loads of cheaper offset options for a few years now and plenty of low fee offers about to make the move cheap even for those with smaller loans.
    The difference between The One Account's SVR @ 3.75% and First Direct's SVR @ 3.69% has not been that much saving me only £1 per week. I am self employed First Direct are not interested in me as a current account customer as I have not been able to prove income so I imagine they wouldn't want me as a mortgage customer.

    There are other cheaper options and the difference has not been much. Not enough to be worth the hassle of switching.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    HappyMJ wrote: »
    The difference between The One Account's SVR @ 3.75% and First Direct's SVR @ 3.69% has not been that much saving me only £1 per week. I am self employed First Direct are not interested in me as a current account customer as I have not been able to prove income so I imagine they wouldn't want me as a mortgage customer.

    There are other cheaper options and the difference has not been much. Not enough to be worth the hassle of switching.

    You need to compare the equivilent products which are the lifetime tracker offset rates not SVR

    OA
    50% 3.65%
    75% 3.75%
    80% 3.85%
    85% 3.95%
    90% 4.10%


    FD offset lifetime tracker

    75% 3.49% fee free, 3.19% £499 fee
    65% 3.29% fee free, 2.99% £499 fee

    There have been better temp special deals in the past and most likely will be again
  • brit1234
    brit1234 Posts: 5,385 Forumite
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    Rainbowsend wrote: »
    It's funny how they don't 'reduce' their rates when the borrowing costs have gone down !!

    I thought they had gone up. The cost of borrowing money for the banks has gone up if you look at LIBOR, more and more BOE base rate is becoming irrelevant.

    http://www.bankrate.com/rates/interest-rates/libor.aspx
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Rainbowsend wrote: »
    It's funny how they don't 'reduce' their rates when the borrowing costs have gone down !!

    Borrowing costs have been rising since last October.

    If you haven't noticed there's been financial turmoil in Europe recently.
  • thecasementkid
    thecasementkid Posts: 45 Forumite
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    getmore4less wrote: »
    Can't believe there are people still with this product.

    They have been fleesing their customers for ages

    There have been loads of cheaper offset options for a few years now and plenty of low fee offers about to make the move cheap even for those with smaller loans.

    I'm sure you're right, but the thought of changing during the current climate fills me with dread!
  • Rainbowsend_2
    Rainbowsend_2 Posts: 10 Forumite
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    Thrugelmir wrote: »
    Borrowing costs have been rising since last October.

    If you haven't noticed there's been financial turmoil in Europe recently.

    Yes I do know that costs have been rising and I do know there is a financial crisis in Europe. It is pretty hardy to not notice that kind of news right now!!!

    My comment was based on my experience with One Account over the years. They only ever (and not always) reduced rates when the BOE has reduced theirs. There has never been a letter out of the blue saying "our borrowing costs have reduced lately therefore we will reduce your interest rate" !
    Really want to be MF this year..bring it on
  • sujman
    sujman Posts: 567 Forumite
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    I got my letter today. Fortunately, I hope to have paid off my mortgage within 2 years and I calculate that the cost of the interest rise will be a sum total of under £40.
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