RBS - Rubbish Mortgage Rates For Existing Customers

MissKitty

Does anyone that has an RBS Mortgage, looking for a new deal, notice that there isn't many good options available to find a new deal unless you use them as your main bank?

We have been on their SVR since October 2011 as we want to pay off a lump of the Mortgage in May, I have been watching their rates for several months and feel pretty pushed out at the moment.

Their rates have been going up slowly, the admin fee used to be £199 now it's £799 but £0 if you hold your main account with them and alot of the deals available are only for people who have their main bank account with them (which we dont and have no plans to move).

Their tracker rates for current customers are really rubbish too. We want to go to a different bank but feel stuck as my husband has just come out of the army after 24 years service and he is currently doing agency work so this wouldnt impress a bank.

any ideas appreciated?

dimbo61

My lender has poor deals for existing customers and better deals for new customers so you are not alone.
Try and work out what your LTV will be after you have paid the Lump sum off the mortgage then see what other lenders have or if you drop into a better LTV with your existing lender IE 85% or 75% or even 60%

Thrugelmir

MissKitty wrote: »

Their rates have been going up slowly, the admin fee used to be £199 now it's £799 but £0 if you hold your main account with them and alot of the deals available are only for people who have their main bank account with them (which we dont and have no plans to move).

Its your choice. Lenders are increasingly reliant on depositers money to fund mortgages. Hence why they want you to bank with them. This is merely a return to the pre boom credit lending days. I would expect lenders overall to become restrictive as time passes.

MissKitty

dimbo61 wrote: »

My lender has poor deals for existing customers and better deals for new customers so you are not alone.
Try and work out what your LTV will be after you have paid the Lump sum off the mortgage then see what other lenders have or if you drop into a better LTV with your existing lender IE 85% or 75% or even 60%

I'm glad I am not the only one that has a lender with poor rates for current customers, their not exactly doing their best to keep us.

I have been number crunching and comparing mortgages for several weeks, but I am unsure what LTV i will have as if I go to a new bank they will probably revalue our house and i think it will be worth £20,000 less than our original purchase price, wheras if I stay with RBS they dont seem to be revaluing when we fix a new deal so my LTV is higher!!

MissKitty

Thrugelmir wrote: »

Its your choice. Lenders are increasingly reliant on depositers money to fund mortgages. Hence why they want you to bank with them. This is merely a return to the pre boom credit lending days. I would expect lenders overall to become restrictive as time passes.

Thanks for your comments, I understand now why they want you to bank with them, that never occured to me.

liubeliu

Britannia/Co-op do better deals for existing customers that are not open to new i.e. 5 Year Fixed at 3.39 with £999 fee or 3.59 fee free for 75% LTV

Joe_Bloggs

MissKitty Said:-

RBS - Rubbish Mortgage Rates For Existing Customers
Does anyone that has an RBS Mortgage, looking for a new deal, notice that there isn't many good options available to find a new deal unless you use them as your main bank?

Perhaps the smart thing to do is to have no one 'main bank' but more than one. Work out/ask what minimum actions are required to get a new current account without closing the existing accounts. You may have to transfer a number of direct debits. Then let these direct debits be to the Radio Times and Whitaker's Almanac for example.
J_B.

There may be cheaper publications given that the last one is 50 quid.

MissKitty

Joe_Bloggs wrote: »

MissKitty Said:-
Perhaps the smart thing to do is to have no one 'main bank' but more than one. Work out/ask what minimum actions are required to get a new current account without closing the existing accounts. You may have to transfer a number of direct debits. Then let these direct debits be to the Radio Times and Whitaker's Almanac for example.
J_B.

There may be cheaper publications given that the last one is 50 quid.

Thanks Joe, I have just been looking at that.

You need to have £1,000 credited to the account each month, x 2 D/D or S/O going out each month and x 2 transactions by cashpoint or debit card each month. It is certainly an option.

The mortgage rate for having a bank account with RBS is slightly higher than without having an account with them. But as there is no admin fee, over a 2 year fix (depending on exact outstanding balance), it makes it around £500 cheaper to have an account with them.

Something for me to think about.