Natwest have just pulled my offset credit line

kittykat8

Do you think that other banks will start doing this for example abbey with their flexible plus mortgage.

DVardysShadow

Oh dear. Like people are going to trust banks for a long time after this is over.

miket1964

Sorry to hear of all your problems with Natwest - just confirms what I think about this bank, I rue the day we moved our account and mortgage to them.
Poor service, contradictory advice, poor recording keeping, one department telling us one thing, another telling us another against first advise etc etc.
Good luck all

property.advert

The bigger picture is the accounting standards and the need to report these credit lines on their balance sheet. No help to the people affected I now and I am right behind the complainants (I'd also log all calls and hours spent and them go after them for that as well).

These products were "invented" in times when no-one predicted interest rates could go so low, or there would be such a banking crisis but more fundamentally, no-one ever thought out the long term consequences of someone having perhaps a £200,000 line of credit available. They certainly would not give you a credit card with that facility but the product did.

I think they should be forced to honour the original agreement and not force a change because market conditions make it unprofitable for them to service a product which was intended as a source of extra normal profits.

Stewart_78

Wow, I feel for you guys. This is just another example of the disgusting behavoir of banks recently. I certainly will never trust them again. They have brought our perfectly good profitable company to the very brink and risked ours and our employees jobs. I think we will get through now but it didn't look that way a month ago. The worst thing is that Nat West wanted to take us on and encouraged us to spend thousands on business plans, forecasts and presentations and after 3 months of consideration said no to an EFG application which is 75% secured by the government. This a bank that we, the people, paid to bail out. It's like giving a starving man a few quid to get some food and when he feels stronger he comes back and kicks your head in!

What it does show is that we all need to consider a future with much less bank involvement. You good people chose this product for a reason. There is of course some risk involved in not fixing your rate but for you, it paid off. So, once your carefully balanced descision to buy into this product has paid off, what do they do? Take it away.

Batchy

the reason that banks are doing this is simple, its high risk and makes the books look bad... obligation as liability for say 200k... profit if balance is 10k marginal... say 100 quid a year...

Whats in it for them,... nothing... hence playing hard ball... sorry to all those affected but please dont be so disappointed and make out that you need sympathy as its hard enough for me to get a mortgage at 6% so for you guys currently on 1% please don't on too much about it. I like your attitude of making hay while the sun shines but the sun doesn't always shine. You have to look at the bigger picture if the bank continue to be bailed out by the government the "UK" will run out of money. And while they have a facility that isnt being use for 200k they could then offer it to someone else at more profitiable rate and keep a business in business for a bit longer or help a FTB or buyer find a dream house.

Sorry but ... its not all bad... and you generally still have it rather good to be honest!!

Batchy

I agree I dont feel like I trust the banks, but we need to support the UK and stop being selfish!... if the banks went bust so would the UK would be thrown into turmoil. Sorry but you have to look beyond terms and conditions and be realistic!

TighterThanTwoCoatsOfPain

nearly 20 posts ago i asked if anyone would share their income to loan multiples which is the only way to determine if what they have done is "fair".. ie just because RBS were daft enough to grant a credit limit of 5, 6 (or more??) of your income doesnt mean they should continue to do so..

Infact, its very irresponcible of them to do so.

So... does anyone want to share income (for business owners i mean your drawings not the businesses profit), the before credit limit and the after? I'm even more interested after nearly 60 posts of rants without anyone revealing it.

jhughes486

Me too!
Here is the text of my letter to NatWest. I intend to take this to the Ombudsman.

[FONT=&quot]"I have a NatWest Foundations mortgage which really suits my needs as a contractor. I use it to cover lean years in the market and I pay it down during the good years. I also intend to use it as a facility to fund a second property when the time is right. [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]In short, it is the cornerstone of my financial planning for the next 10 years or so and allows me to borrow money up to 80% of my property value at 1% over base. [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]This morning, “as part of your ongoing commitment to customers”, the facility was reduced from £155,000 to just over £10,000. [/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I would like you to either [/FONT]
[FONT=&quot]1)[FONT=&quot] [/FONT][FONT=&quot]Restore the overdraft limit to its original level with the option to borrow up to 80% of the value of the property at 1% over base rate. In other words deliver what I bought and paid for.[/FONT][/FONT]
[FONT=&quot]2)[FONT=&quot] [/FONT][FONT=&quot]Transfer to an equivalent product at no extra cost. (The Offset product offers a similar facility but charges more for it.) [/FONT][/FONT]
[FONT=&quot] [/FONT]
[FONT=&quot]I have had a couple of conversations with NatWest customer service staff this morning who have pointed out that the bank is acting within its terms and conditions in reducing the facility. This misses the point. The bank is failing to deliver the product I bought." [/FONT]

RecoveringAlcoholic

Times they are a-changin' - Bob Dylan:

http://www.youtube.com/watch?v=aKm65xLpwIM

If you wore a kilt and drank whisky, RBS would have lent you money for anything.


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