RBS and NatWest will lower their mortgage rates

Oct 09, 2008 | Comments 7

Royal Bank of Scotland (RBS) and NatWest have announced cuts in their mortgage rates on their Offset Flexible Mortgage product by 0.5 percent the report comes a day after the Bank of England cut the base interest rate by half a percent.

The Bank of England base rate change will take effect from November 1, RBS and NatWest’s rates changes will shortly follow on the November 3.

The new cut mortgage rate will apply to both existing and new customers at NatWest and RBS according to the banks. Mortgage holders at both Barclays and the Woolwich will also reap the benefits of a 0.5 percent rate cut.

Head of mortgages at Woolwich, Andy Gray said “The base rate cut is a welcome move for millions set against the background of a slowing housing market.” He then went on to say “the move to reduce mortgage payments is good news and will instill confidence, helping customers with their finances”.
Not all banks have yet announced their mortgage rate cuts, or indeed if they will be cutting their rates. Northern Rock who was nationalized earlier this year has also not yet said it they will make changes to their mortgage rates.

Source: moneynews

Filed Under: Mortgage News

Tags: • •

  • paul cooper

    Is the One account reducing there interest rate in line with other banks?

  • Terry Gilbert

    Like Paul Cooper, I want to know more from the One Account – they did not reduce interest rates in October, and I want to know whether they will in response to the 1.5% cut in November. They always seem to be last, and we are considering changing to another provider as a result. I do wonder whether RBS is deliberately trying to drive folk away from the One Account and wind it down.

  • mags

    They actually did reduce it after the october cut – but it was only reduced on onovember 4th… i guess this time they’ll reduce it as well, but only in early december, which is in line with what all banks have agreed to!

  • R Weekly

    To my understanding the One Account did actually pass on the previous 0.5% change – but it took a long time (only came into effect in Nov). Hopefully they will sort this out and follow this latest 1.5% change as quick as possible. Generally people with One Account mortgages are safer bets than those who took out 110% mortgages and caused these problems in the first place. I share the same opinion of Paul that I think RBS are trying to push customers away from this account. First direct looking better every day!

  • rob edwardes

    the one account is supposed to enable its customers to have a flexible mortgage account at a rate 1% above the high street rate,since bank of englands reduction they have not reduced there rate or given there customers any information as to when or if they intend to reduce it in the near future.

  • Keith Clarke

    Trying to find Natwest’s base rate (or its standard variable rate) is a nightmare….
    They are so coy about showing how they shaft us……..oh silly me

  • Terry Gilbert

    One account by RBS is reducing its rate to 4.1% for customers with a less than 50% mortgage from 31 Dec, but this is still high, given the recent cuts in base rate.