Halifax and RBS-Natwest unveil nasty little interest rate rises
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….