rbs ripping off existing customers

97shipman
97shipman Posts: 2 Newbie
in Mortgages & endowments
So, the best deal I can get switch my existing buy to let mortgage with RBS to a 2 year fee free fix is 3.28%. However, as a new customer I could get 2.22%, over 1% and nearly a third cheaper. I pointed out to a nice customer services operator that the RBS website says "get the best rates available when you switch' and that this wasn't true as the best rates seemed to be reserved for new customers and that the bank was neglecting their existing ones. The response was that the statement on 'best rate available' was specific to your circumstances and that new customers were given better rates as they typically had additional costs when compared to an existing customer. Total claptrap and yet another example of multi-nationals not looking after their existing customer base. Seems the only way to get the best deals on anything is to keep on moving.

Comments

  • YHM
    YHM Posts: 650 Forumite
    Sounds like its remortgage time for you then....
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
  • 97shipman
    97shipman Posts: 2 Newbie
    Yep, lots of better deals out there than RBS are offering me to stay with them
  • Nick_C
    Nick_C Posts: 7,455 Forumite
    Name Dropper First Anniversary First Post Home Insurance Hacker!
    97shipman wrote: »
    ... yet another example of multi-nationals not looking after their existing customer base.

    As RBS is 70% owned by the UK Government, I wouldn't really describe them as a multi-national.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Name Dropper Photogenic First Anniversary First Post
    97shipman wrote: »
    Total claptrap and yet another example of multi-nationals not looking after their existing customer base.

    Amount of funds available for this product will be limited. Insufficient to service the existing customer base.

    What are the product fees on the mortgage options?
  • ValiantSon
    ValiantSon Posts: 2,586 Forumite
    97shipman wrote: »
    So, the best deal I can get switch my existing buy to let mortgage with RBS to a 2 year fee free fix is 3.28%. However, as a new customer I could get 2.22%, over 1% and nearly a third cheaper. I pointed out to a nice customer services operator that the RBS website says "get the best rates available when you switch' and that this wasn't true as the best rates seemed to be reserved for new customers and that the bank was neglecting their existing ones. The response was that the statement on 'best rate available' was specific to your circumstances and that new customers were given better rates as they typically had additional costs when compared to an existing customer. Total claptrap and yet another example of multi-nationals not looking after their existing customer base. Seems the only way to get the best deals on anything is to keep on moving.

    Yes, it may be annoying, but they aren't ripping you or anyone else off. They are entitled to set their fees at whatever level they wish (and believe makes the best business sense). Indeed, they have a fiduciary duty to maximise returns to shareholders.

    You currently have a deal with them which they have honoured. You now wish to take out a new deal and they have offered you a new deal, but you don't like it. You are free to take your custom elsewhere. You are not being ripped off.
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