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

Jason12345678

Hi stubass, I didn't realise that NatWest had a One account too (Offset Mortgage)
Are you in the same situation as me, as in the remaining balance is low making it hardly worth remortgaging?
It does seem unfair that base rate reductions aren't passed on.
I just found an old letter notifying me of an interest rate increase from November 2018 and the wording is:

"Following a recent review of our interest rates, we are writing to let you know that from 04 November 2018, we're increasing our Virgin One account interest rates by 0.25%

To provide your mortgage the bank also has to borrow money. The interest rates at which we borrow have risen and this has made it necessary for us to increase the rate on your mortgage."

I'm struggling to find a letter informing me of any reduction in interest rates at any time!

Thrugelmir

Jason12345678 said:

Hi stubass, I didn't realise that NatWest had a One account too (Offset Mortgage)

Virgin Money originally launched the account. RBS (Natwest) now manages the accounts. 
Not an offset mortgage. The account has a flexible borrowing facility. As opposed to a seperate savings account. The interest premium charged is in relation to this facility. As it indirectly costs the bank money to provide the borrow back facility. 

Jason12345678

Thrugelmir said:

Virgin Money originally launched the account. RBS (Natwest) now manages the accounts. 
Not an offset mortgage. The account has a flexible borrowing facility. As opposed to a seperate savings account. The interest premium charged is in relation to this facility. As it indirectly costs the bank money to provide the borrow back facility. 

It is an offset mortgage, it was an offset mortgage when I applied for it and it's an offset mortgage now.
A simple google search confirms this, there is a Wiki article - The_One_Account

Thrugelmir

Agree that that's an offset in terms of being as the name suggests a single current loan account. Over the past 15 years or so offset mortgages moved to to having a separate savings account to that of the mortgage loan. Very different types of account with no borrow back facilities. 

Jason12345678

I see. Looks like the nature of offset mortgages has evolved over the years.
It seemed like a great idea at the time but it took great discipline to control and keep track of spending. I now have a Lloyds current account and transfer money into the oneaccount each month to pay it off. It does completely defeat the whole nature of the account but am making much better progress this way and everything is much clearer.

kaMelo

I too have the RBS offset mortgage and they have never been competitive in terms of APR. The benefits they offered were about flexibility.
Overpayment or payment holidays  borrowing more (up to your available mortgage facility) was easy, one phone call and it was in your account in 48 hours all without additional fees added. Not to mention when I took it out in 2006 they paid all legal/valuation fees, it literally cost me nothing to set it up and worked well for us early on. 

Regarding interest rate reductions;
Sep 2006 up to 5.65%
Nov 2006 up to 5.90%
Jan 2007 up to 6.20%
May 2007 up to 6.45%
Jan 2008 down to 6.45% (must have lost an increase letter betwen these)
Mar 2008 down to 6.2%
April 2008 up to 6.45%
April 2008 down to 6.20% (hadn't even realised they adjusted it twice in one month)
July 2008 Up to 6.45%
Nov 2008 down to 5.95%
Nov 2008 down to 4.95% (Two in one month again)
Dec 2008 down to 4.20%
Feb 2009 down to 4.00%
Feb 2009 Despite the BOE rate cut of 0.5%, were not going to pass this one on. 
Mar 2009 down to 3.75%  (They half lied about the above)
Then nothing moved until March 2012 when it went back up to 4.00% and September 2018 when it went up to 4.25% and is still there now.
Last decrease was March 2009, it's only gone up since then.

Jason12345678

Thanks for this info.
Yes I believe they paid all my legal/valuation fees too.