Anger as RBS pulls fixed rates

Anger as RBS pulls fixed rates


Brokers reacted strongly on Friday after Royal Bank of


pulled its two-year fixed-rate mortgages available through intermediaries.

The move came just days after the bailed out bank raised rates on some of its other fixed-rate products by up to 0.7 percentage points.

As rival lenders appear to cut rates and loosen lending criteria somewhat, RBS withdrew its two-year loan at 3.89% for borrowers with a 30% deposit.

Ray Boulger from John Charcol slammed the lender, saying: “RBS says it is running four days behind on its processing. I would expect this of lenders that have had cracking deals, but RBS certainly hasn’t had any.”

RBS denied that it had run out of funds for the two-year loan. The bank has pledged to boost lending by £25 billion over the next two years.


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