3 min Read
03 Jul 2012

Written by Damien

Damien is one of the most widely quoted money and investment experts in the national press and has made numerous radio & TV appearances. He created MoneytotheMasses.com while working in the City when he became disillusioned with the way the public were left to fend for themselves because they could not afford financial advice.

More about Damien

ING increases its mortgage rate & RBS double-charges mortgage repayments

Today was a bad news day for mortgage borrowers.

RBS double taking loan repayments

RBS' (Royal Bank of Scotland) computer woes continued as it emerges that some RBS and NatWest customers have had mortgage and loan repayments debited twice from their bank accounts. This follows hot on the heels of last week's fiasco, following a systems IT update, which left customers unable to access money.  RBS claim that the latest cock-up only affects a small number of customers and that none of those affected will be left out of pocket.

What to do if RBS / NatWest have taken your mortgage or loan repayment twice

Anyone affected is being advised to contact the bank's call centre on 0161 931 9959 or 0800 656 9639, or visit their local branch.

 

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ING to raise its SVR - meaning higher mortgage repayments

ING Direct announced that it plans to raise its Standard Variable Rate (SVR) from 3.50% to 3.99% for existing borrowers with effect from 1st August. An SVR is a mortgage lenders default rate, which borrowers often revert to after fixed rate deals expire, that lenders can vary largely how they want, subject to their own terms and conditions.

So how much will your monthly mortgage payments go up by in £s?

ING Direct customers can use this mortgage calculator to calculate how much their monthly payments will go up by in £s as a result of the hike in SVRs.

So why are they putting up their rates?

Basically, it is because the rate of interest  at which banks borrow money (then lend this on to their customers) has risen over the past few months. This is in part due to the eurozone crisis which has increased pressure within the banking community resulting in a rise in interbank rates.

Will all lenders follow suit and increase their rates?

Well a  number of lenders already have already raised their rates in recent months, as listed below:

  • Halifax increased its SVR from 3.49% to 3.99% on 1st  May
  • The Co-operative Bank increased its SVR by 0.5% to 4.74% on 1st May
  • Clydesdale and Yorkshire Bank increased its SVR by 0.36% to 4.95% in May
  • Bank of Ireland increased its SVR to 4.49% on 1st June

Lloyds Banking Group and Virgin Money both said back in March that they have no plans to increase their rates with other lenders keeping quiet on the subject.

Should you be fixing your mortgage now?

So should you rush to fix your mortgage now why rates are low?

Luckily I’ve answered this question in my article Should you fix your mortgage now? But if you want more help then you can click on the button below.

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