Virgin One Account Interest Rate Rise

Thrugelmir

HappyMJ wrote: »

So...4%? Is it reasonable...No it isn't but it'll have to do.

Compared to what? 4% isn't out of line with main lenders SVR's now.

The one account costs the RBS money to administer as well. So that needs to be factored in.


I've looked at this product over the years but never considered it worth the premium cost for the facility on offer. Though its not a bad product for those that it suits personally.

kippygirl

Another account holder has corrected my calculation - the current overcharge is now 2.3% - i.e. an overcharge of £2300 per annum for every £100K of borrowing. I'll amend my post above.

getmore4less

Thrugelmir wrote: »

I thought the whole purpose of the One Account was to keep all one's money under one umbrella. In the current financial climate a savings rate of 3.75% isn't to be sniffed at.

It's not a savings rate of anything.

at best it's less debt at whatever the rate is.

(same for all offsets type arrangements)

opinions4u

HappyMJ wrote: »

Love to...but I self certified when I took out my Virgin One Account and I cannot see any other self-certify mortgages available on the market anywhere. My actual income would not allow me to borrow anywhere near the facility limit. Virgin One still allows me to self certify my income when I request a facility change (within the risks the underwriter decides on on the day of request).

I'm slightly confused.

This sounds like you know what your income is and declare a different figure when you want to borrow.

xileee

It's going to cost me an extra c£400 a year following this rate increase! Not ideal but I have taken out a 0% credit card with a balance transfer fee of 2.99% lasting for 20 months (with Virgin Money!) equivalent APR therefore 1.794% - transferred £10k to the One account 'credit card'. So over the period I will save interest of £221 (being 4% less 1.794% x £10k). I think!

It makes me feel a little better that Branson is subsidising the increase on his old product.

kippygirl

The original Virgin One team had a completely different ethos when it came to running the VO account. Everything changed dramatically when RBS took over entirely but no-one seems to have expected that they would completely dishonour the promises and guarantees that had been previously made about following B of E rate.

musicegbdf

xileee wrote: »

It's going to cost me an extra c£400 a year following this rate increase! Not ideal but I have taken out a 0% credit card with a balance transfer fee of 2.99% lasting for 20 months (with Virgin Money!) equivalent APR therefore 1.794% - transferred £10k to the One account 'credit card'. So over the period I will save interest of £221 (being 4% less 1.794% x £10k). I think!

It makes me feel a little better that Branson is subsidising the increase on his old product.

Not sure you have calculated the APR correctly. You will pay the balance transfer fee up front , and on the total not on the reducing balance so the APR I guess will be nearer 5% ... I think. Someone cleverer than me might work that one out as well...

Kippygirl know her onions on this subject, it seems that RBS have done this on several accounts , not just VOA . Looking at the Libor rates , they have gone up. but again this breaks the contract condition implied by OA for accounts taken out in the early days...

Andy_WSM

Sent Kippygirl a PM as I am feeling very disgruntled with VO at the moment. To put interest rates up in the same week that bonuses & profits is discussed is outrageous! I'd love for a pay rise, let alone a bonus, yet here we are feeding these monsters? :mad:

kippygirl

The legal case is quite clear - RBS already know that I am taking legal action but are waiting for my solicitors to formally contact them which they will be doing as soon as the preparatory steps have been completed. If anyone else would like their details passing on to the solictors then PM me. Note -this only applies to those who had the account up to about 2002 and relied on the promises to always follow B of E rate.

julieb1972

What I dont understand is that I have a "One Account" mine was never classed as a Virgin one account. It clearly says RBS on both my bank statements and cheque books. When the letter came re the interest rate rise I thought that I would come off the One Account and switch to a fixed rate deal. After looking on the RBS website I thought that I would go for one of their 2 yr fixed rate deals - as an existing customer an option of £799 or free fix, no valuation needed (important as my 7 yrs old house has lost quite a bit of value and I want to keep the same LTV rate) and no credit check (again my circumstances have changed so more appealing)
Booked in with my local branch to be told I am not an existing customer!!! I have to go through the whole process & even pay a chaps charge when it comes to trf the amount over.
I am inclined to go with it as its easier now that they have credit checked me etc (I passed thankfully) and its not easy to come off an offset mortgage but do you think after its gone through I will have grounds to appeal the additional £200 fixing charge & TT charge etc?