Are RBS applying wrong Base Rate to my mortgage?

maggiecon

Hi,

I was hoping someone with a bit of knowledge of mortgages could help me.

I took out a 100% mortgage with RBS in 2006 to buy my home, after I finished college and got a good paying job I changed my mortgage to repayment in Jan 2009 with 22 years left to repay.

I signed a new deal with RBS at the time the Bank of England Base Rate was 4% and my deal states "BR+ 0.5%" and my repayments were then based on 4.5% interest.

When the bank of England base rate dropped my mortgage payments didnt, I rang up RBS and was told that my base rate is not the Bank of Englands but their own base rate, something neither they or my mortgage broker told me. Any how I took it on the chin and have contined to make mortgage payments at 4.5%.

However, I was cleaning out the study last night and came upon my mortgage paperwork, nowhere on the paperwork does it state that the base rate is not the bank of england, or that it is RBS's base rate in fact it clealy states.

"any changes in the Bank of England Base Rate will be applied to the Base Rate Tracker Mortgage with effect from the first day of the following month"

I was just looking for some advice from anyone on how I can take this further.

Crashandburn

Not too sure how a broker is involved on the basis it would seem you renewed a deal in 2009 with them after taking out the first mortgage in 2006.

A simple letter to them with copies of the original paperwork you were given by RBS should be sufficient to start the process of the matter being looked into.

There is no RBS conspiracy theory re the wording of their tracker products so possibly something has been missed on this one.

Good luck

kingstreet

Are you looking at the 2006 paperwork, or that which applies to the retention product you selected in 2009?

Presumably, the latter was done direct with the lender and without advice, based on your decision to choose a product offered to you on an "information-only" basis?

maggiecon

Hi,

The document I have relates to the new mortgage, I am trying to locate old mortgage paperwork.

However upon looking at my mortgage payments prior to switching from interest only, I was still not paying Bank of England base rate. for example my last interest only payment was on 01.04.09 and it equates to 4% interest at the time the Bank of England base rate was 0.5%

The following month I changed to repayment and I have been paying £716.02 per month ever since, which equates to 4.5% when my deal clearly states I shoule be paying BR + 0.5% i.e. 1%.

Hope I have explained this ok

kingstreet

You need to check the key facts illustration from the time you took the last product. This will set out the rates payable during the initial offer period and the "follow-on" rate thereafter.

IIRC it's in section 4 of the KFI.

BoE base rate changed to 0.5% in March 2009 off the top of my head. As you pay RBS in arrears, your first payment based on the new rate would have been in April that year. Does the tracker have a collar, preventing the rate dropping past a set floor?

When you changed to capital & interest, was any other change made to your rate? Again, this would be reflected in your KFI, as mentioned above.

If you don't have he KFI, you would be better making a subject access request to the lender under the DPA to request copies of all mortgage documentation. Then, formulate your approach, based on the information returned to you.