RBS and NatWest to only cut mortgage rate by 0.25%
6 March 2009 By MoneyhighStreet Staff 3 Comments
RBS and NatWest have announced that they will only be cutting their mortgage rate by 0.25% and therefore not passing on the full cut in the Bank of England base rate of 0.5%.
Chief Executive of RBS Retail Banking, Paul Geddes, said ‘The continued downward trend to Bank of England base rate has had a significant impact on customer savings rates. It is more important than ever to consider both our savings and mortgage customers when determining any rate changes.’
Those RBS and NatWest customers with a flexible mortgage will benefit from the 0.25% interest rate cut from 1 March 2009.
According to RBS and Natwest, most of their mortgage customers either have a tracker or fixed rate mortgage.
Those with the fixed mortgage of course are fixed to whatever rate their deal is set at.
Those on a tracker mortgage will benefit from the 0.5% cut in the base rate.
On the savings front, many of the banks savings accounts will be maintaining their current interest rates. Those that are reduced will on average be by less than 0.20%.
I think it is terrible that the base rate cut is not being fully passed on, after all us tax payers are supporting the RBS group. My advice would be to stay well clear of NATWEST and RBS for mortgages, all they are interested in is lining the chief executives pockets and bonuses
consecutive rate cuts not being passed on is disgusting – i for one am voting with my feet! bye bye natwest you deserve no interest literally!