Natwest One Account SVR - Rate Not Cut

DavidW76

I currently have a complaint lodged with the Financial Ombudsman since November 2016 and they have advised that the complaint will take a while as they have lots of complaints of a similar nature and I was wondering how many others are experiencing my problem and whether they too have complained.

My complaint is that Natwest have not reduced the Standard Variable Rate on my Natwest One mortgage and it remains at 4%. Natwest announced that they would reduce the SVR for all Natwest Mortgage customers from 4% to 3.75% from 1st Oct 2016. However they have not honoured this for Natwest One mortgages! I complained to Natwest and they simply said they are not contractually obliged to reduced the rate. I understand this however the governor of the Bank of England stated that there was no excuse for not passing on the rate cut and in addition to this Natwest have actually reduced the rate for a standard Natwest Mortgage. They would not give me a valid reason why they have not applied the discount to Natwest One mortgages and I feel that this is unfair and misleading as their statement says that they have reduced the rate for all Natwest SVR customers which is simply not true.

Has anyone experienced the same issue?

AnotherJoe

Sounds as if you are looking for a tracker mortgage?

davidmcn

Where does it say that the Standard Variable Rate is relevant to the One Account?

DavidW76

AnotherJoe wrote: »

Sounds as if you are looking for a tracker mortgage?

I can't change my mortgage as my circumstances have changed and I would not pass the existing affordability criteria so I am stuck with this product

DavidW76

davidmcn wrote: »

Where does it say that the Standard Variable Rate is relevant to the One Account?

I am on the Natwest Standard Variable rate for my One account which is 4%

davidmcn

davidmcn wrote: »

Where does it say that the Standard Variable Rate is relevant to the One Account?

DavidW76 wrote: »

I am on the Natwest Standard Variable rate for my One account which is 4%

Here are the One Account Mortgage Conditions - there's no mention there of the Standard Variable Rate: www.oneaccount.com/conveyancers/natwest/pdfs/NW_Conditions_5-08.pdf

Do you have something for your account saying it is meant to be linked to the SVR?

minimike2

It doesn't follow the base rate. It is a MVR - Managed Variable Rate. They can do whatever the hell they like with it.

Suck, yes, but that's what you signed up to.

You can always move your mortgage elsewhere if you don't like the rate.....

getmore4less

Can't believe there are people still with this product,

The warnings went out around 10 years ago it was not a good deal and they were behind on the rates over products with better features like standard offsets from Barclays and First Direct.

One thing the one account did with their Simulation was to make it very easy to double count the mortgage payment giving the impression it was working miracles.

AnotherJoe

DavidW76 wrote: »

I can't change my mortgage as my circumstances have changed and I would not pass the existing affordability criteria so I am stuck with this product

I'll rephrase what I wrote.

Sounds as if you think this product is a tracker mortgage. I dont believe it is.

getmore4less

sale brochure from 2008.

http://www.oneaccount.com/onev3/pdfs/TOA-sales-brochure-v0708.pdf

"Our rates will vary with interest rates in general"

AnotherJoe

getmore4less wrote: »

sale brochure from 2008.

http://www.oneaccount.com/onev3/pdfs/TOA-sales-brochure-v0708.pdf

"Our rates will vary with interest rates in general"

They dont say which direction