RBS raises mortgage rates as Halifax prepares to follow suit

[TimberWolf]

Halifax, which was Britain's largest mortgage lender before the credit crunch, wrote to borrowers telling them that it was increasing the cap on its standard variable rate (SVR) from 3 percentage points above Bank Rate to 3.75 points in three months' time.

If it then acted to move its rate up in line with the cap, around a million borrowers would end up paying 4.25pc on their mortgage as opposed to 3.5pc.

RBS raises mortgage rates as Halifax prepares to follow suit - Telegraph

Which while only a small (4.25%-3.5%) = 0.75% difference, is a whopping 4.25%/3.5% = 1.21 times as much in mortgage payments.

[AtW]

Which while only a small (4.25%-3.5%) = 0.75% difference, is a whopping 4.25%/3.5% = 1.21 times as much in mortgage payments.

Bankers heeded the message of making big profits for banks in order to justify their big bonuses

[BrilloPad]

Which while only a small (4.25%-3.5%) = 0.75% difference, is a whopping 4.25%/3.5% = 1.21 times as much in mortgage payments.

I suppose with prices sliding slightly there is more negative equity (and mortgages harder to get) so people have to pay?

[scooterscot]

You say RBS but really it's the government who is increasing rates by the back door.

[AtW]

You say RBS but really it's the government who is increasing rates by the back door.

That's true - rampart money printing by Sir Merv resulted in high inflation so banks now need to make 5-7% margin on capital employed just to avoid having it devalued, not having to pay savers anything is no longer enough so they increase prices.

[lilelvis2000]

Curiously I also received a letter about my agreed overdraft. it made me laugh because this is an account with £0.01 in it that I haven't used in three years and I dont even have the card for anymore.

Anyway the curious bit was that the charges were going up and that charges would also be applied on weekend and holidays. If I went into the bank on saturday and made a deposit what are the chances that it would be applied that day. Zero I'd say. Looks like they are desperate for cash anyway they can get it.