Gear Head

iTrader: (2)

Blame it in the government, blame it on the banks.... even though nobody forced people to take out loans that they couldn't repay. It is always someone elses fault isn't it.

Iwan

+1

Kieran_Burns

iTrader: (1)

I was just about to take a 10 yr fixed... I think I might wait a couple of weeks and see what the Mortgage goes down to then fix it.

J4CKO

iTrader: (1)

So, it will be open season again, a new Q7, X5, Extension, Holiday on this nice cheap mortgage rate to take up the slack since the rate went down.

chris singleton

This will benefit lots of people, but to kick start housing market they need to make mortgagees offer better deals to first time buyers and people who want to move.

Not much point having a 3% base rate if the current best fixed and tracker deals are close to 6% !!

wagrain

No savings as such, but . . . . .

We have 15 Buy To Let mortgages between me and the wife so we're very happy with the rate cut

Great time to be a landlord right now, even if property prices keep on falling.
Unless you bought stock at stupidly high prices (we didn't)

Think I might take the wife out tonight for a meal after hearing this news!

Petem95

Do you really think they'll pass on the cut tho?!!

You can still get 12 month fixed rate savings at over 7% - the Bank of England official rate just seems to be getting ignored now - rates depend on bank swap rates now.

unclebuck

And me - reward the feckless and punish the sensible.

Typical of this government. This is all part of NuLab softening up the 'great british stoopids' for a snap election victory next spring and they are falling for it hook line and sinker.

Dave T-S

Me too, and mine is only 0.23% over BOE base. So glad I had the foresight to swop into a tracker when I remortgaged in January

Total monthly reduction in mortgage payments since last month a whisker under £500

TelBoy

0.23 over? Blimey, which bank was foolish enough to sign that piece of paper??

j4ckos mate

im happy tracker mortgage,
not much savings

Fantom

That's just rubbish. I know what you're getting at but I think you'll find about 95% of people need to take a mortgage to buy a home. If the cost of mortgages go down, then we all are better off. Apart from my mortgage I'm not in any debt. I haven't been reckless and bought ten ton of luxury items.

David Lock

Don't seem to hear much from the credit card companies about their 15% - 20% rates coming down? dl

Fantom

I keep getting offered 0% until July 09 if I use credit card cheques!

fast bloke

About the same reduction. I've just ordered a new X5

Dave T-S

Wotcha Tel

It is HSBC

It's a cracker - no cancellation penalties, no penalty for lump sum repayments

We have both (separately) banked with them for over 20 years, but despite them trying to get my mortgage business for years they had never come up with anything competetive - we snatched their arm off on this!

They pulled the plug on the product just after our loan was booked
The product was only on the market for a short time as they got overwhelmed with demand - you don't say

EddScott

Are you not an adviser FB?

Doesn't sound like good advice?

Dave T-S

I've just ordered a reduction on my overdraft

Dave T-S

Savings? The father in law has dementia and is in a home close to death, he worked all his life and paid his tax and NI plus scrimped and saved to have a nest egg put to one side for old age. We have spent the last two years attempting to stop (successfully, it has to be said ) the local PCT stealing all his life savings to pay for his care. Had he been a dole dosser and sponged off the state and not had a penny to his name, the PCT would have funded the lot happily. Where's the justice in that , and you can't take it with you

EddScott

Thats the problem we have.

If you have something, you will spend your life trying to stop somebody else taking it. If you have nothing, you will spend your life being handed everything to you.

Personally, my advice would be to put everything you own in someone elses name. Take out as many loans and max out as many credit cards as possible buying stuff and hiding it somewhere.

Then declare yourself bankrupt. Say you spent it all on booze, drugs and top quality hookers (we'll you don't want to appear cheap!)

You get to keep it all and don't pay a penny.

unclebuck

I'm not - I'm worse off as a result of this. It will only positively effect those who already have tracker mortgages which will no doubt no longer be available to new customers. The banks and lenders won't pass this on.

It's a **** of sh*t as far as I'm concerned. Still, chocolate fountains and cheap fizz all round. Looks like NuLab have bought your vote...

fast bloke

My advisor was crap...... He always let his heart rule his head when he was advising me

Matteeboy

New Labour encouraged reckless spending, hooked most of the population of the UK and hence votes and are now doing their very best to protect them.

After all, a mortgage isn't a loan is it...?!!!

fast bloke

A recession isn't caused by reckless spending - reckless spending is in fact the cure

Matteeboy

And astronomical national debt which will hit taxpayers for many years is the result. Brilliant.

lozgti

As they keep saying,the important interest rate is LIBOR.

For those not on a tracker,banks aren't going to lend to you at a rate less than what they are paying to borrow it.

EddScott

Do you work on the "never ask an adviser what they do with thier money?"

My mother is a bit like that and I seem to be following in her footsteps.

FlightMan

Is it?

I don't see how Joe Public will be recklessly spending when jobs look shaky, banks etc aren't passing on this IR cut, the prices of houses is still falling ( 2.2% last month) anything bought in $'s is about to go up ( look at what the £-$ rate is doing ) and the equity is his house has just gone -ve.

We're fooked.

All IMHO.

TelBoy

Lloyds (for one) *are* passing on all of today's cut, let's not let facts get in the way of a good story


One benefit of a state owned banking system

And Libor rates are way lower than this morning obviously, you WILL see some proper reductions in borrowing costs.

Deep Singh

I'm not sure the savers here should worry so much and that the heavy borrowers should be so smug.

If we do enter a deflationary spiral then people will be paying to service a debt on a commodity that is falling in value. The debt payment then becomes a larger proportion of the value of the asset, not good.

For the savers, by definition, if we are in deflation then the value of your currency is not being eroded by inflation and hence your purchasing power is increased. You may well be able to participate in 'carry trade' that the japanese did for years ie borrow at 2% in this country (because you don't already have a mortgage) and then invest in a higher yielding currency.

Don't despair; CASH IS KING BABY, CASH IS KING!