One Account rates cut

camz2008

Handy link if anyone feels they can get involved. With the One Account too. Their lack of a reaction (positive or negative) is unprofessional and needs addressing.

http://www.financial-ombudsman.org.uk/

rinkydinkpanther

I've just spoken to an adviser again on livelink. She says the link above relates to FMO product which is no longer offered and that they still have no information about rate changes which relate to my account.

magburner

lrr wrote: »

This is totally new! Looks like they are passing it on to new customers and not us!

This is a really old product that hasn't been on sale for months.

Do you all believe in conspiracy theories?!

Doh

rinkydinkpanther wrote: »

Hmm, that link (designed for non-customers) quotes their typical rate as 6.05% rather than the 6.2% it still quotes on the customer site. So it looks like they are passing on a cut of one tenth of the BOE cut (0.15% against 1.5%). Not exactly generous is it ?

They also appear to have increased their max LTV for new customers from 75% to 85%. The 12 month intro discount rate of 5.74% for new customers (a 0.31% cut off their quoted typical rate) now comes with a £499 arrangement fee (was previously zero).

I just wish they'd announce it properly, so that I can start planning accordingly.

there lowest rate was 6.05% for something like <50% LTV

even so that doesn't look promising!

huskypup

Just received this letter from the One Account

Dear MS**************

Thank you for your email of 14 November about the intrest rate applicable to your account. I am sorry you are unhappy that we have not reduced our rates immediately folloing the bank of englads base reate reduction, but grateful you took the time to call and explain why.

Your One Account is a variable rate mortgage: howver it is not a Base Rate tracker. This means the interest dies not automatically move in line with the Bank of England base rate. Whilst we always use any base rate change as a natural review piint, we also consider a wide range of factors including the cost of funding this type of mortgage.

As the product is not linked to Base rate, we are not obliged to pass any change onto One Account. However on 3rd Novemeber we made the decision to reduce interest rates down by 0.5% to bebfit out customers and we are currently reviewing our rate following the latest barse rate change.

This change in interest rates is in line with your Terms and Conditions. Conidition 6a states that the intial interest rate is stated in your Offer, we can change it with immediate effect at any time but we will inform you in writing of each change (at the earliest opportunity and at most within 30 days or we will publish notice to change in at least 3 national daily newspapers.

Wjilst in the past we have regularly made our decision immediatley following the base rate change we are not obliged to do so and do have to consider other relevant factors at the time. I appreciate this may not be the resolution you are hoping for, however I hope you are happy with my explanation.

This was from the customer complaints team - sounds like a fobbing off letter to me.

Still not happy

Vancat

Hi All
I used the livechat earlier this week, and was told the same old story...waiting to hear etc etc. The poor girl seemed as fed up as we are!
She said she's been there since it was Virgin, and sympathised! I suggested someone there looks at this thread, as people are getting very frustrated. She said that they are monitoring it, and are aware of on line discussions.....
Anyway, out of the blue came a letter today, explaining their T's & C's (which I don't need), and reiterating that basically they can charge what they want, and don't have to pass any cut on at all....(which we know).
Also enclosed was a "How to complain" leaflet....if they don't hear anything further by some date in Jan, they will close the file...??? (I wasn't aware that I'd actually complained...just asked why we hadn't had any update!)
I really don't think we are going to get a significant reduction, if at all.
Having said that, I'm reluctant to change away from them, purely because of the complete flexibilty and facility we've currently got....albeit at a price.
VC
Yep, looks like people like myself and huskypup are indeed getting letters if they've used Livechat!!

Doh

Vancat wrote: »

Having said that, I'm reluctant to change away from them, purely because of the complete flexibilty and facility we've currently got....albeit at a price.

i've felt the same way too, however there comes a point that the price to pay for the flexibility is just to high!

finster

It’s just occurred to me that perhaps they are waiting for the inevitable tax cuts in the pre-budget report on Monday – a good day to bury bad news?

magburner

finster wrote: »

It’s just occurred to me that perhaps they are waiting for the inevitable tax cuts in the pre-budget report on Monday – a good day to bury bad news?

Good god, you people are absolutely paranoid!

magburner

camz2008 wrote: »

Handy link if anyone feels they can get involved. With the One Account too. Their lack of a reaction (positive or negative) is unprofessional and needs addressing.

http://www.financial-ombudsman.org.uk/

What are you complaining about?

They have not passed on a rate cut on a product not linked to base rate!

What do you think the ombudsman would say?