The One account raising rates

wymondham

To all those who seem to think OA is/was sold as a Tracker - I've had mine since mid 90's and OA have always been open and very clear about it NOT being a tracker.... they can do what they like with the rate...

teabelly

They never used the word tracker but for the first several years I'd get letters saying 'hurrah the BOE has fallen so we are dropping your rate.' or the BOE rate has gone up so we're putting it up. Then it changed and the rates stopped being relevant to the BOE at all. After a lot of those letters most people would assume that the primary rate choice was the BOE as in 9/10 cases the oneaccount rate followed what the BOE was doing. Is it unreasonable for a customer to assume that the rate was closely related to the BOE after it appears to follow it for several years? If it was unrelated to the BOE and more closely related to LIBOR then they should have made that clear in communications from the beginning.

Thrugelmir

teabelly wrote: »

If it was unrelated to the BOE and more closely related to LIBOR then they should have made that clear in communications from the beginning.

No one foresaw the events of 2008.

andykb

I wonder if anything will happen on the back of the recent bank lending rate scandals?

RBS have been implicated in it

teabelly

It seems highly suspect that RBS suddenly start using LIBOR as a guide when they started fiddling with it. If they didn't gain ie be able to charge mortgage customers more then they wouldn't have bothered.

Nothing will happen to those that did it as it never does. These banking types are usually wealthy party donors.

It also seems as though Labour ministers knew what was going on so they're just as bad.

Jimbo1976

In the boom days of the mortgage world there was a strong direct correlation between the base rate and LIBOR which is the rate lenders used to be able to borrow at, so in the past when the BoE BR went down LIBOR would go down. Those days are long gone.

Whilst everyone sadly now knows a lot more about LIBOR now than ever before, everyone assumes that lenders can borrow as much as they like at LIBOR rates. This is not the case, some lenders would have to pay a lot more. Also lenders are very nervous about funding their 25 year mortgages though a loan which is effectively for 3 months.

SVRs are going up because lenders funding costs are going up and up as a result of what is happening (or not happening in Europe).

Unless there are specific conditions in the original offer letter linking the SVR to base rate then lenders can increase SVRs citing cost of funding for the increase.

The_J

andykb wrote: »

I wonder if anything will happen on the back of the recent bank lending rate scandals?

RBS have been implicated in it

RBS have been accused of making LIBOR lower to give the impression they are healthier than they actually are.

I.e. mortgage customers would have benefited.

It smacks of extreme arrogance and selfishness that people with a mortgage would complain at a time when rates are being kept artificially low and inflation artificially high. Both factors combine to lead to the best conditions for debt repayment in the history of the UK and the worst conditions for cash saving.

Next time you think about whining over a 0.25% rate rise feel free to PM me so I can smack it out of the park for you without the public humiliation.

tradecarbon

Before the world economic problems, lots of things like this was happening. Now that the world is in financial turmoil, everyything financial is being assessed and all the scams and fiddling are starting to appear.

There is more to come...

andykb

The_J wrote: »

RBS have been accused of making LIBOR lower to give the impression they are healthier than they actually are.

I.e. mortgage customers would have benefited.

It smacks of extreme arrogance and selfishness that people with a mortgage would complain at a time when rates are being kept artificially low and inflation artificially high. Both factors combine to lead to the best conditions for debt repayment in the history of the UK and the worst conditions for cash saving.

Next time you think about whining over a 0.25% rate rise feel free to PM me so I can smack it out of the park for you without the public humiliation.

if they are keeping the rates low then why do they feel the need to up their lending rates to mortgage owners quoting libor rates are increasing

feel free to bat this wherever you like

The_J

andykb wrote: »

if they are keeping the rates low then why do they feel the need to up their lending rates to mortgage owners quoting libor rates are increasing

feel free to bat this wherever you like

Get a brain.

If a rate should be 5%, and it is actually 1%, are you still going to complain if it goes up to 1.5%?