One Account rates cut

Doh

Brice wrote: »

Not sure, if they can borrow 1.7billion at the LIBOR rate (~3.5%) and charge us ~5% for one month. That's 2.125 million in their pockets.
I am not an economist but it does not sound like a good idea.

your probably correct, however (though i'm no expert) isn't the issue that they wouldn't be able to borrow that much money? in the same way the consumer/businesses can't get hold of the cash? i mean if they had to loan 12 billion off the taxpayer to stay afloat, surely suddenly having to find almost 10% of that bailout again wouldn't go unnoticed? whos gonna lend it to them? HBOS? the government again?

okay so it would cost us a weeks interest at a reduced rate (though my egg savings account is 6.2% so minus the tax i would be about breakeven), but surely thats a price worth paying, i few quid lost here to prove our point? were loosing alot more with the 1% we are short no?

Brice

Poj wrote: »

Fair point. When Libor has come down to something more like what it used to be, ie just above base rate, then I will expect the full 1% back.

For now, I'll give them the benefit of the doubt & just insist on last month's 0.5% !

Agree !

We must keep an eye on the margin between LIBOR and OA rate.
I will try to update these plots regularly:
http://www.postimage.org/image.php?v=gx1bOyx0
http://www.postimage.org/image.php?v=Pq2Efe9r

oldjabez

Hi taurusgb

NatWest Offset reductions:

2nd November .50% down to 5.95%
30th November 1.00% down to 4.95%
31st December .75% down to 4.20%

I think you are correct "RBS are trying to muddy the waters some more"

Juno_Moneta

Yes this is a great step forward. It's easy to forget the 1.5% base cut which turned into 1% with One, however I don't wish to be greedy, and on balance I am happy that the latest 1% decision has been made so swiftly.

Many will say forums like this have no power, however it seems there has been so much emailing, talking to websites, newspapers, an article in the Guardian, hey even a direct One Account question to Gordon Brown himself on the radio, that we can dare to imagine that the noise generated by customers has indeed made a difference.

Well done to all those who chose to voice their opinions and make it happen.

This is a good PR move for One, even though it makes the previous lenghty 'under review' period look ridiculous.

Now lets all stop talking about mortgages and get on with Xmas! :beer:

bricksh

taurusgb wrote: »

Can I just ask the holders of Natwest offset and RBS offset who haven't had the full 1% passed on if they had a larger reduction than the One Account holders last month? Not trying to say that it is right if RBS have made a differentiation this time round - just trying to work out if RBS are going to say they "owed" OA holders a greater reduction this time round?....perhaps RBS are trying to muddy the waters some more............

Well certainly not RBS offset. We waited the same intolerable length of time for the "review" and the same 1% cut announced at the same time as for one account.

Divide and conquer anyone?

Brice

oldjabez wrote: »

Hi taurusgb

NatWest Offset reductions:

2nd November .50% down to 5.95%
30th November 1.00% down to 4.95%
31st December .75% down to 4.20%

I think you are correct "RBS are trying to muddy the waters some more"

If you look on BBC website you see RBS with 1.5%+0.75% cut and OneAccount with 1%+1% cut.
NatWest with only 1%+0.75% doesn't appear. Looks like RBS apply the full cut only on the products in the BBC table .

http://newsvote.bbc.co.uk/1/hi/business/7766364.stm

Insider_knowledge

This is great, so my 5.2% will reduce to 4.2% on dec 31.

I am not too bothered about it being slightly higher than other RBS mortgages as we have the unlimited ability to overpay, so I am happy.

However I would expect the further cuts due next year will be passed on just as fast and in full.

This will allow me to start putting extra in, instead of just sticking to my guide.
The more extra cash I put in the better for RBS future. They should have realised that loyal customers do not like being treated the way they treated us.

Insider_knowledge

What will happen when the expected zero rate happens, most analysis predict it will happen by july 2009?
Will they apply a "Collar"

Juno_Moneta

If zero happens, we will all be moving onto 5 year fixed rate deals before rates creep up again!!!

Insider_knowledge

Yes but surely no bank would give a mortgage at 0%, it would have to be 2% minimum to make it worth their while?