RBS no longer offering Offset Mortgage Product?

Johnkg

Just noticed that all references to the Offset Account have disappeared from the Royal Bank Of Scotland Website.

http://www.rbs.co.uk/personal/mortgages.ashx

All I can find is this line under Existing Customers - Changing Deal:

Offset mortgages offer a lot of flexibility - however, you may find that you’d like to switch to another deal.

I've been on it for a few years now and up until they started putting the rate up 'due to market conditions' I've been pretty happy with it. I'm on target to be mortgage free in 4yrs and 6 months!

I hope they aren't going to withdraw it for existing customers or start tweaking the rate upwards now that its no longer on offer. I will be well hacked off...

Anyone heard/know anything about this?

hurworth

I'm using the Natwest's Offset mortgage, and have had a letter this morning advising me that after the Bank of England cut the rates yesterday, the interest rate for my mortgage is reducing by 0.5%. The offset mortgages have been taken off the Natwest site for new customers. Natwest are owned by RBS, so can't see why they would be withdrawing these for existing customers, especially if they are tweaking the rates already .... ?

Johnkg

Good point.

I also got the 0.5% cut letter this morning.

Had a quick look through their (revised) T&Cs and can't find anywhere where it states they can withdraw the product for existing offset customers.

I think I'm just smarting from the previous tweaks!

hosebergine

I got the letter yesterday too - the cynic in me feels they delayed it to coincide with the latest interest rate cut so we'd think they were being generous...;) Let's see how long it takes them to act this time

Just out of interest, I shipped out £20k from our OneAccount when RBS was looking dodgy because we need access to it next year. Now the IR has shot down and it is getting pretty much nothing in my savings account, and the fear for RBS's stability has abated, shall I bung it back in the mortgage again - what do you think?

Johnkg

After the 'tweaks' I decided to get rid of my mortgage at all costs as I honestly thought I'd bought into a 'tracker offset' so got the hump! As I don't have any other debts I've been wacking everything into my Offset savings a/c and I've been overpaying by £200 a month for the last 18 months. Also any work bonuses and divis have been going straight off the balance.

I've got about 16K in the offset savings and thats available to me if I ever need it. Obviously your circumstances may/will be different but I'm looking for a debt free life asap .

hermanmunster_3

Hi - really hope RBS don't stop this for existing customers, will feel very :mad: if they do. Tried to phone but they seem mega busy at the mo. Has anyone else got any word on what is actually going on??
Happened to notice that the application fee had gone up to £1799 recently - I paid about £250 this time last year..

Johnkg

I too kept seeing that arrangement fee rise and rise.

Looking at other posts and news today most, if not all, banks have withdrawn their Tracker mortgages. I can only assume that RBS considered the Offset mortgage to be a tracker too (even if it wasn't really). It was certainly IMO their best mortgage product.

Judging by the T&Cs I'm pretty certain they can't close it for existing customers. Worse thing that can happen is that they'll tweak the rate upwards 'due to market conditions' :mad:

minimike2

They have also now pulled the One account from new sales.

hermanmunster_3

RBS amongst others have just said that they will cut their "main variable rate" by 1.5%
http://newsvote.bbc.co.uk/1/hi/business/7716086.stm

now what does the main variable rate refer to?????

gilmcn

I too have my mortgage with RBS Offset and noticed yesterday it had been removed from website. RBS can't remove it for exisiting customers although they have written several times asking if I wish to switch. The letter we all got about rate cut was dated before the latest Bank of England mega drop so we will be in line for another. Although not a true 'tracker' mortgage the rate was to be discounted against the banks standard variable or main variable rate so we should be in line for a reasonable cut here's hoping !

olly300

hermanmunster wrote: »

RBS amongst others have just said that they will cut their "main variable rate" by 1.5%
http://newsvote.bbc.co.uk/1/hi/business/7716086.stm

now what does the main variable rate refer to?????

Normally the institutions SVR.