Offset Flexible Mortgage-Natwest

Overthetop

I received a letter today from Natwest with regards to my Offset Flexible mortgage informing me that the interest on this account will increase by 0.25% due to: “This change reflects the current market conditions” Buyer beware of this type of mortgage if you believe that interest rates would follow that of the decreases governed by the bank of England. Prior to this Natwest had written to me twice in the last few months decreasing the interest inline with the Bank of England decreasing the interest rate.
I know I should not be but I am pretty annoyed by this.

sarkin

Yes a few people are comming unstuck with these types of products, unless you are directly linked to BOE rate it is up to the lender if they want to pass on the rate cut.

bankbook

We have just had a letter from Royal Bank of Scotland today announcing that the rate on our offset is to rise by 0.25% on April 1st.Not happy either

Overthetop

bankbook wrote: »

We have just had a letter from Royal Bank of Scotland today announcing that the rate on our offset is to rise by 0.25% on April 1st.Not happy either

It's not a great time to have a mortgage!
Although I am ever hopeful that mine will be gone in 35 months...thats the plan

350nutter

I got the same Natwest letter. I was considering changing to a different product soon, this just made the decision easier.

jackomdj

My offset mortgage is linked to the base rate so I don't have this sort of problem.

I guess you have to think about what rate you are paying in real terms (ie what would your interset value be if you did not have your savings & what your interest is) for me having an offset is fantastic as we have a fair amount of savings plus our current accounts have quite a lot going into them too.

Nicky

marknottm

Hi

I got home tonight and was welcomed by a letter from my bank telling me that due to current market conditions they are increasing my mortgage rate by 0.25% from April.

DudleyMan

I also had a letter from Natwest, increasing my rate in March. Yesterday, I received another letter, as Natwest increases it's mortgage rate on offsets again.

It seems that every time the BoE reduces rates, Natwest / RBOS decrease their rate too for a couple of weeks, then put it back up. Seems like their paying lip service to Brown Bottle, following the meetings in No. 10 last month, then taking the p*ss out of their customers.:mad:

Wutang_2

Dudley Man - at no time does RBS group say they will follow in line with the bank of england so why should they - just because you want them to?? And if I understand your coded language too (Brown Bottle?) - are you also blaming Gordon Brown?? Why???

DudleyMan

Brown called in the heads of all the major banks last month to ask them to pass on BoE interest rate cuts. How do you work out that I'm blaming Brown for them paying lip service (cutting ratees) and then putting them up again?

This discussion is about banking not politics. If you want to do labour activist politics, take them elsewhere.:p

Wutang_2

speak english and I am always up for it...

not interested in politics just interested in why you say "Seems like their paying lip service to Brown Bottle, following the meetings in No. 10 last month," could have been worded a little more coherently.

I just know that unless its a tracker its up to the lenders what they do - fact son.