It confirmed that interest rates on its offset products increased by 0.25% on 1 March, while rates on its One Account product range will rise by 0.25% from 1 May.
This is the first time in almost four years that offset and One Account customers have seen their rates change, with RBS saying it last changed their rates in June 2008.
The move follows Halifax’s decision to increase its SVR from 3.50% to 3.99% from 1 May, also attributed to a sharp rise in the cost of funding.
An RBS spokesperson said: “Over the last year, the cost of funds at which we need to borrow at to fund our mortgage commitments has risen considerably. We have absorbed the cost during this period, but have now decided to pass on some of this increase.”
The lender said that the majority of offset and One Account customers would see their rates rise to 4%, the same as the bank’s SVR.
The spokesperson added: “We have written to all customers impacted to advise them of the changes. The bank has a full range of alternative options for any customers who prefer to switch from their current product.
“We have around 200,000 customers in total in these categories and last changed their rate in June 2008.”
