One Account (RBS) - Not changing SVR - April 2020

Jason12345678

Hi,
I have a OneAccount mortgage, yes I know I might be one of the very few left.
They have still not reduced their SVR despite the 2 recent BOE base rate cuts. The rate remaining at 4.15%
What is even more annoying about this is that it is an RBS product and I know that RBS have reduced their SVR on other products.
I would love to move my mortgage but I don't owe enough on it to make it worthwhile, fees would eat up any gains I suspect.
I know that it's a retired product, but I still feel that in light of current circumstances, they have a duty to pass a reduction in their SVR as they have on other products.
Just wondering if anyone else is in the same position?
Thanks in advance for any advice.

alan_d

I can't help, but when I had a OneAccount mortgage (~10 years ago) that was a problem then also, BoE rate went down, OA too AGES to reduce it.
BoE rate went up, OA raised it within a few days!

Thrugelmir

Overpay the mortgage by as much you are able. That's the way to save interest. 

Jason12345678

Thanks both.
It's my of fault for staying with them for so long, should have jumped years ago.
I have enjoyed the flexibility of the account though, that maybe is why I stayed with it.

I have been overpaying it like crazy for the last 5 years or so and plan to have it paid off within 3-4 years.
As the amount I still owe is quite small then a slight drop in interest rate wouldn't make that much difference. I think it's the principle of it that annoys me.

Thanks,
Jason.

Thrugelmir

The account isn't a straightforward loan. As such will require additional adminstration etc. That cost will be reflected in the interest charge. With fewer active accounts there's less customers to share the burden across. 

Jason12345678

I'm wondering if there is an option to remortgage? I don't think any lender would offer a mortgage of <15,000?
If they did I imagine the interest rate would not be competitive.
I could take out a standard loan and pay the mortgage off with it but I'm pretty sure that the purpose of the loan cannot be to pay for property?

ACG

There are lenders who offer free legals and valuations on remortgages with no arrangement fees. The rate would probably be lower but on £15k it might not be worth it, you could probably save yourself about £10-15 a month (at a guess). 

The one account used to be Virgin mortgages, what was their base rate linked to and what were the conditions of it? RBS can not just changed the terms of the mortgage you signed up for. You would not want them changing it negatively would you? Imagine their SVR was higher and they could just change it to tie in with their normal SVR, you probably wouldnt be too impressed. They will just be honouring whatever you originally signed up for. 

Jason12345678

I agree, it probably isn't worth the hassle of remortgaging. I think I'll just stick to overpaying as much as I can to get it cleared quickly, present circumstances permitting.


Yes it was originally the Virgin One Account.
I will have to try and dig out the original offer/terms.
They had in the past roughly followed the BOE base rate but I'm guessing they have no obligation to do so.
In the scheme of things, with the financial problems others are having, it's more just the principle that bothers me.
I know it's a product that was retired many years ago, I've a feeling the last thing RBS want to do is make it favourable for those that remain.

Thanks for your advice.

ACG

The thing with principles is that it does go both ways. Their stance will be that they are honouring whatever you agreed.

I am not necessarily saying you are wrong as they will probably up the rate when interest rates rise.

Another thought... you might be able to take out a loan and shove that in the reserve account? Might be a quicker/easier way to get a lower rate? Not something I have ever looked into before but could be an option? 

Jason12345678

They certainly haven't hesitated to put interest rates up in the past fairly quickly when the BOE rate increases, as alan_d said earlier in the thread.

I can get a loan to pay off the balance at 2.9% over 36 months from Lloyds but it does state that personal loans can't be used for buying land or property. I'm not clever enough to calculate how much of a saving that would be

I suppose a downside of having a loan instead of sticking with the one account is flexibility. I'm currently £16000 ahead of the planned balance so in effect could take quite a substantial payment holiday at any point if some unforeseen circumstance arose.

For the last 5 years or so I haven't been using the one account as my current account, I have my wages paid into my Lloyds account and on payday transfer £1000 into the one account, I transfer some money back into the Lloyds account if I start to run out of money towards the end of the month but that's generally only 200 or 300 pounds.

I still think I'm probably making a fuss over peanuts considering how low the balance is, and I know some people are in a considerably more difficult position than me at the moment.

Thanks again for your thoughts.

stubass

Hi, we have a NatWest One account too and you echo my sentiments exactly. The principle is also that their profit margin on the interest rate charged on this account has increased over the years from less than 2% above base rate in 2008 to now being 3.9%. A couple or so years ago they even increased from 3.9% to 4.15% in the middle of the very long period of NO interest rate changes, just because they could! Is there anyway that MSE could raise this issue on behalf of NW One customers as they are not listening to us as lone voice "mere" customers? I feel that the interest rate should at least reflect the recent change in the market to say to their customers that they have our interests at heart - many folk will be in financial uncertainty right now and a small gesture would be appreciated. We bailed them out as taxpayers but they don't seem so eager to reward that.