Natwest Bank Base Rate

ddavis

Hi All,

Can anybody tell me if the Natwest Bank Base Rate is linked to the BofE base rate?

And if anybody knows, are they reducing it following the latest drop?

I've got a tracker with them but the wording is confusing me, I was under the impression i had a BofE tracker but my paperwork says Natwest Bank Base Rate.

Thanks in advance!
DD

Tom_Kelly

The Nat West base rate is better described as 'related' to and not totally 'linked'. I have a similar mortgage and expect the reduction to filter through in a month or two. Hopefully!

dimbo61

You might not get the full 0.5% cut on your mortgage
But I hope you do !

Trying_to_be_good

I'm sure I read in the paper on Thursday that Nat West are dropping the full 0.5 percentage point (I'm a pedant and refuse to call it 0.5% because it isn't) from their Base Rate. Trying to find a reference to it now...

Found this:
"Halifax, the UK's biggest lender, Bank of Scotland, Chelthenham & Gloucester, the lending arm of Lloyds TSB, Woolwich, owned by Barclays, and the Royal Bank of Scotland (RBS) Group all cut SVRs by the full 0.5 percentage points last week.
Other lenders including Nationwide, Abbey HSBC and Britannia are yet to make an announcement on whether they intend to pass on the cut."
at http://www.timesonline.co.uk/tol/money/property_and_mortgages/article4934513.ece

RBS Group includes NatWest. Still can't find the reference to their Base Rate...

Tom_Kelly

trackers are not SVR so the announced cut does not apply. Maybe but not yet!

ddavis

So then, what exactly is the point in a tracker with NatWest if it's basically their own made up rate?

Gorgeous_George

From the Natwest website:

base rate - the interest rate from which lenders set their rates for lending and savings products. It's usually based on the base rate set by the Bank of England.

Historically, it has probably mirrored the BofE Base Rate. I expect it will fall soon to be in-line. You could ring 0800 0 969 527 and ask.

GG

silvercar

Check your KFI, there were some threads on here a while back about Key Facts quoting the BoE base rate and the offer letters quoting NatWest base rates. Do check, you may find that NatWest are obliged to let your mortgage track the BoE base rate.

ddavis

Marvellous, sounds like i'll have a similar problem. They did actually get a bit of my offer wrong (made me part repayment instead of interest only) so theres a good chance they got that wrong too.

Shall update you all tomorrow, KFI will be in garage and little one is sleeping...

brightonman123

get on to your bank (or is it ours now?), and tell 'em Gordon wants the rates cut, or else!

finance 101- reduce interest rates- mortgages become 'more' affordable, = less defaults, less risk = more ££ likely to be lent?

wharty

they are dropping it on variable rate mortgages and the offset mortgage by 0.5% on the 3rd of November