Halifax and RBS-Natwest unveil nasty little interest rate rises

3 March 2012

monkey bank manager

In a move that will cost some of us even more money that we probably don’t have, the Halifax and RBS-Natwest have announced mortgage rate rises despite the fact that the Bank of England base rate hasn’t moved above 0.5% for almost three years.

Two RBS-Natwest mortgage products, the Offset and One Account are set to rise by 0.25%, affecting 200,000 of the banks’ customers. A spokesman said: “Over the last year the cost of funds at which we need to borrow at to fund our mortgage commitments has risen considerably."

He blethered on: "We have absorbed the cost during this period but have now decided to pass on some of this increase, 0.25% to our Offset and The One Account customers. For the majority of our Offset and One Account customers their new rate will be 4%, the same as our standard variable rate.” Cheers mate.

Meanwhile, the Halifax standard variable rate (SVR) is set to rise from 3.5% up to 3.99% from 1st May, with 850,000 customers set to be affected. The rise would drive up repayments on a £100,000 mortgage by £24.31 a month or £291.72 a year. Lovely stuff – again, cheers lads. Watch out for the rest of them following suit any day now….

TOPICS:   Mortgages   Banking   Economy


  • oliverreed
    Banking cunts, although they all get lovely bonuses for this, move your mortgages fuckers - now!
  • Joe
    All well and good, but bear in mind RBS/NatWest and Halifax do not largely borrow money directly from the Bank of England at 0.5%. They often have to borrow money to fund their mortgage lending from other banks, at a (comparatively) much higher interest rate. Bear in mind both of these banks have savings products paying way, way above the base rate - this money has to come from somewhere. RBS out and out stated this to be the case - the cost of funding their lending has gone up, and so they are passing on this cost to their customers. It should also be noted that even if this were just a profit-making move, both banks have recently posted massive, unsustainable losses. Trying to make more profit in that sort of scenario is not the worst idea in the world.
  • lakeslover
    It was obvious it would go up soon, after all everything else has! Just wish my employer would give us a big bonus every year to cope with it - we haven't had a rise for 4 years but our personal expenditure for performing in our jobs has risen dramatically giving us a pay drop.
  • Incapability B.
    What a load of wank. Banking must be one of the only institutions in this country where you get paid hundreds of thousands/millions in bonuses for failure . How about they pass some of the losses onto the dickheads that caused the situation where in, in the first place. @Joe what a load of shit you talk. Even if banks had to borrow money at 1-2% (which they don't) they will still loan that money onto a customer looking for a new mortgage at a 5-6% rate making a healthy profit over 25 years with around 10 yrs just paying off the interest for the customer. You could probably have a constantly burning all year round bonfire with the money that banks make on fees and credit card interest alone, if only the pricks that are paid the ridiculous sums to invest it properly didn't treat it like the spare change in some people's back pocket. Banking does what it wants when it wants and will continue to do so and any government or any so called watchdog has or will have any power to change that fact. Bankers are Shakers, end of.
  • Mr B.
    My mortgage is 2 years old now, why should MY interest rate go up, they don't need to fund any more new money for me! If the cost to borrow money to supply new mortgages has risen then get the new mortgage payers to pay the difference.
  • Dick
    @ Mr Biscuit. Because you agreed that it could go up when you signed the mortgage contract. Why should they let you have a low rate for 25 years, or however long your mortgage is? If they were to give fixed rates for 25 years, I reckon the lowest you could get would be 8-10%.
  • jt
    @Dick Funny you should say that. US mortgages are fixed for the full term of the mortgage. My friend just got a 30 year mortgage fixed at 4.5%. I wonder why we can't get those sort of deals?
  • Mike H.
    I'll tell you why JT. Cos us UK folk like to moan and bitch to each other without ever taking a stand against being exploited - which is exactly what our government does - and it knows it can continue to do it. Unless we all realise our collective power we will remain at the mercy of corporations with their greedy profit margins and the government with their greedy tax regimes (e.g. increasing fuel duty by 5p even though an increase in oil prices generates the HMRC more duty through VAT). So the conclusion is, us Brits love getting butt-fucked and we love complaining about it. Vaseline is sometimes available but remember, it's a taxable benefit.
  • Mary H.
    I expect it's due to the daft fuckers who were stupid enough to have bought PPI's then try and claim it back with compensation. You fucking cretins!

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