RBS/NatWest, Abbey and Northern Rock leave SVR above 5 percent
Dec 05, 2008 | Comments 6
Royal Bank of Scotland (RBS) subsidiary NatWest along with Abbey and Bradford & Bingley have all kept their Standard Variable Rates (SVR) above 5 percent, almost 3 times the Bank of England base interest rate.
Two of the banks with the highest SVR are Northern Rock and Alliance & Leicester, they are charging borrowers 5.84 percent on their SVR compared to the Bank of England 2 percent.
Prime Minister Gordon Brown today intervened and demanded that the banks pass on the full 1 percent rate cut onto their Standard Variable Rates (SVR) allowing customers to take the full advantage of the interest rate which is at its lowest level seen in its 300 year history. Only three major banks have promised to pass on the full rate cut so far.
Halifax announced yesterday they would be cutting their Standard Rate by 0.25 percent.
Source: Telegraph
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Filed Under: Interest Rates • Mortgage News
Northern Rock have historically been the lenders to accept sub-prime mortgages from people far less able to meet their commitments when other mortgage lenders have refused these cases. These poor people have been paying over the odds for years - and cannot afford to move their loans. The management have also charged so much for their borrowers to change to fixed rate products and add the charges to their capital debt.Now their SVR is still 5.84% while the Bank Rate is 2% - and the Government (who now own Northern Rock - or should I say us - the taxpayers-) seem unable to get their house in order. Why were the Directors paid huge sums for ’saving the Bank’when they should have lost their jobs due to mis-management and why is Gordon Brown allowing the situation to continue?
I am one of many people coming to the end of a fixed rate deal with Northern Rock. They have already said that they will not offer me a decent deal at the end, but of course my house has decreased in value since I took my mortgage out two years ago, thus leaving me in negative equity and forced onto NR’s standard variable rate.
I like many others am now going to be penalised for the greed and ineptitude of the city boys whilst the supposed Nationalised bank’s bosses get rich! What a great country we live in these days.
JB - Dont worry, the northern rock svr is now 5.34% which is now ironically quite a competitive rate!
its a far sight better than the 7.4% i was going to get hit by them with.
I like how this article mentions about Abbeys rate being left at over 5% when abbey have confirmed their rate is still under review and will probably change next week.
Excellent work
So still nothing is done to bring Northern Rock’s SVR into line with the Bank Rate - and now the Staff are to be rewarded for their incompetance by being paid bonuses! It is beyond belief that this state of affairs continues. This and other institutions should have been allowed to flounder, investors compensated - and the Tax Payer relieved of yet more misery. Where are the politicians who are not afraid to stand up and be counted? Come on David Cameron - let’s start to see some real opposition and sensible policies.
Although it’s all very unsurprising in this nation of corrupt and greedy bankers, I have written to my MP asking for pressure to be put upon Northern Rock’s management to give a fair deal to those suffering at their hands. I have received two replies from a clearly irritated chief executive who can give no answers (particularly to my enquiry about the CFO who was paid £900k recently!).
I would implore you all to write to your MPs also. After all, this still supposedly a democracy!