Interest rate

BuzArpy

Hi
We have an offset mortgage with the RBS and when set up in 2012 the rate was 3.5% above the BOE rate (0.5%) so for years this has been 4% in total.
Last year when the BOE increased to 0.75% naturally our offset went to 4.25%.
Since the lockdown the BOE have slashed their rate ,but our offset rate is still 4.25%!!!
I have been in touch with RBS and all the phone operator could say was that the RBS rate is set  and thats that.
He did explain that they have had many disgruntled customers just like me ringing up.
I did say to him well we'll see what uncle Martin has to say!! to which he laughed.
so what does uncle Martin think?
regards
BuzArpy

jamielutz1987

@BuzArpy

Sorry if I'm asking the obvious, but are you not able to switch products with RBS or just remortgage away from RBS to move to a better rate?

As for the rate, I don't think it's tied to the BoE rate, it's just a variable rate set by RBS for their offset mortgages, which currently on their website is shown as 4.25%.

I guess the only way to get away from that would be to switch to a lower non-offset rate with RBS or remortgage away to a better offset rate with another bank.

davidmcn

BuzArpy said:

so what does uncle Martin think?

No idea, you'd probably need to contact him to find out.

[Deleted User]

Uncle Martin says none of his homes have mortgages, so he doesn't give a flying fig.

csgohan4

as it seems it's not a tracker mortgage, then not much you can do other than switching to a different lender who is more competitive

grumiofoundation

BuzArpy said:

Hi
We have an offset mortgage with the RBS and when set up in 2012 the rate was 3.5% above the BOE rate (0.5%) so for years this has been 4% in total.
Last year when the BOE increased to 0.75% naturally our offset went to 4.25%.
Since the lockdown the BOE have slashed their rate ,but our offset rate is still 4.25%!!!
I have been in touch with RBS and all the phone operator could say was that the RBS rate is set  and thats that.
He did explain that they have had many disgruntled customers just like me ringing up.
I did say to him well we'll see what uncle Martin has to say!! to which he laughed.
so what does uncle Martin think?
regards
BuzArpy

Uncle Martin would I am sure tell you to switch mortgage. 

Depending on your LTV of course but you should most likely be looking at <2%. 

dimbo61

WOW I can feel your pain about this
We have an offset tracker with Barclays which we took out in November and currently pay 1.34% since the cut in the BOE base rate from 0.75% to 0.01% 
It was only a 2 year deal but saving every penny in the offset possible as that is one hell of a way to save money ( at that rate ) tax free.

Thrugelmir

Sounds like a product that RBS is attempting to run down. With the offset facility you've a service to pay for.