RBS revealed as worst bank for rate hikes
Analysis by the campaigning site savingschampion.co.uk and data firm Moneyfacts for The Sunday Times showed that RBS and NatWest’s average 5-year fixed mortgage rates have risen from 2.84% to 3.64% over the past year.
The analysis also discovered that despite interest rates remaining frozen at 0.5%, the banks have lowered rates on variable savings accounts the most out of ten high street lenders.
Anna Bowes of Savings-Champion told The Sunday Times: “It is no surprise that, while providers have been cutting savings rates, mortgage rates have been on the rise.
“There have been over 2,000 cuts made to existing savings accounts over two years. And there is no sign of this practice ending anytime soon.”
The banks, part of the RBS Group, which is 80% owned by the taxpayer, have slashed the rates on their savings accounts in the past year with NatWest having cut its rates 21 times and RBS 13 times.
Santander and HSBC have lowered rates just once, Halifax twice and Lloyds three times in the same period.
Justin Modray of Candid Money told The Sunday Times: “Analysis of Bank of England data suggests that over the last six months, the amount of interest paid out to savers has fallen by over 10%.
“By contrast, the amount of interest charged on mortgages increased by around 2%. While Bank rate has been rooted to 0.5%, savers and borrowers have had a rough ride, but, as ever, the banks look to have come out winners overall.”
Last week HSBC increased the cost of some of its mortgages, which saw the previously market-leading two-year fix rise from 1.59% to 1.79% – though it is one of the few sub-2% deals let on the market.