One Account rates cut

russ295

hi

i have just contacted them via live link and recieved this reply

Christian: The One Account variable rate remains under review. It is important to remember that while this product is not linked to the base rate, we are using the recent base rate decision to review our interest rates.
Christian: However, no further information is currently available.

he typed it in less than a second (or he may have had it ready and waiting!)

i have just moved to the one account as its ideal for my needs but the FD 0.49% above base was my main aim but unfortunatly i never meet their criteria

russ

scotcitz

I think RBS faces a clear choice -- either pass the full rate cut on (as they have claimed publically) or admit publically they're not doing it.

Dualcyclone

RBS have already said that the rate will be passed on in full on 1st December (so I read elsewhere).

So I am going to wait until then - if I don't recieve the full amount, I think I'm going to start shopping around for a better deal; 6+% is bloody high!

scotcitz

Hi, I looked that up, there is this Guardian article in which RBS make this pledge to cut mortgage rates by 1 December:
http://www.guardian.co.uk/money/2008/nov/07/mortgages-rate-cut-property

tajima1

I thought the same about rates being driven by RBS policy. However, the following transcript of an online conversation with oneaccount yesterday belies this assumption:

me: any news on oneaccount reducing rates in line with 1.5% cut by B of E and already agreed by RBS
Rachel: Not as of yet, have you contacted us before about this?
me: No, but like many other oneaccount customers, I cannot understand the delay in light of RBS press statements.
Rachel: I understand, however the One Account is a separate product to that of RBS Standard variable Mortgages, and doesn't come under the same decisions, please be assured though, that we are currently reviewing our own rates and a decision will be made and communicated to you at the earliest opportunity.
Rachel: I'm sorry that I am unable to provide you any further information at this stage, but please feel free to get back in touch with us for updates on the progress of this decision.
me: Thanks Rachel but I have to say that that you are owned by RBS and as a tax payer I am unhappy that a bank now essentially owned by the taxpayer is not passing on the cut more rapidly. Thanks for your comments. Bye!
Rachel: Thank you for your feedback and patience on this issue, please be assured that I will pass your comments onto our customer relations team for their notice.

So are they RBS owned or not? When I eventually manage to sell up, I will not be returning to this disingenuous crowd!

chasancrai

Wy should they pass it on?

Funding this is from LIBOR which is still c4.2% and way above Base Rate.

LIBOR didn't come down 1.50% so it will cost them money to pass it all on.

Read some of the other commentary around why any bank should not pass this on and you will fee a lot better informed

tajima1

OK. How does that explain RBS and a host of other banks passing on the full cut despite the Libor rate? My point is that Oneaccount is an RBS product. Even if they intend to wriggle out with a cut based on Libor rather than base rate, it does not explain their reticence to make an announcement. The real issue is that RBS have made a headline grabbing promise to pass on the full cut but Oneaccount customers banking on that announcement may be disappointed.

teabelly

If mortgage express can pass on the cut to BTL mortgage owners then I don't see why RBS can't pass on their cuts to residential customers. Both are equally in the poo with their lending policies.

russ295

http://business.scotsman.com/business/Mortgage-lenders-sell-customers-short.2651863.jp

just found the following, it was from 2005 but it states:-

Company spokesman David Robson said: "Now that the One Account is part of the RBS group, it was decided that the rates would change at the same time as its other mortgages."

or have they changed thier minds since then?

russ

chasancrai

russ295 wrote: »

http://business.scotsman.com/business/Mortgage-lenders-sell-customers-short.2651863.jp

just found the following, it was from 2005 but it states:-

Company spokesman David Robson said: "Now that the One Account is part of the RBS group, it was decided that the rates would change at the same time as its other mortgages."

or have they changed thier minds since then?

russ

i.e. the first of the following month - not necessarily the same amount!