Scooby Snacks 23

As per title.......

Gear Head

iTrader: (2)

Hardly surprising.

Matteeboy

STOP REWARDING RECKLESS MUPPETS AND PUNISHING PRUDENT SAVERS YOU GOVERNMENT BAR STEWARDS!

I now feel slightly better.

Our interest was covering pretty much all our annual bills. Now it's not. Bu66er. Bu66er. Bu66er.

Oh well, the tide will soon turn.

FlightMan

Yep, rising inflation due to the cost of imports rising because of the week £ will mean rates will have to go back up.

In another 18 months we'll be back over 5% IMHO.

Matteeboy

Agreed although I'd stick my neck out and say 8-10% by 2010.

Gear Head

iTrader: (2)

That's only if we actually start importing again!

TelBoy

I'll bet you £10 per 1bp against that if you want? Seriously.

stilover

Totally agree.

TelBoy

This i would lay at up to £100 per 1bp. PM me if you're interested.

Matteeboy

I'm not a betting man. How about a sportsmans bet?!

PaulC72

I would be inclined to agree especially as I have a 10 year fixed @5.79% which would then justify the decision made

lightning101

Well one person seems confident of his convictions and is "walking the walk" not "talking the talk"

lightning101

I'll stand a £1 on the 8% per £100 tel before 2011

davyboy

Put your savings in your mortgage...lovely!

TelBoy

You do know your total downside if rates are still 1.5%, don't you?

lightning101

£1

TelBoy

Er, no, not on the terms i was offering.


But ok, you're done in a straight £1 under/over

davyboy

Was that for me....I don't know! I know I have some savings, and I have a mortgage fixed at 4.9% for another 2.5 years?

TelBoy

I was talking spread betting, Dave, nothing to do with the real world.

Savers will be hit hard, they're always the fall guys in a recession. 4.9% for 2 years isn't the end of the world, lots of people are locked in a lot higher.

lightning101

He meant me, I was playing ignorant about him gambling my money, and offered him £1 for £100 on a simple bet instead

mart360

Now if the CC company's dropped there rates to say 7-8pc

then people would prhaps pay off more, thus giving them a bit of light at the

end of the tunnel. in turn it may get some money back to the banks.

Mart

TelBoy

Why would cheaper credit rates encourage people to reduce their balances??

davegtt

Crazy thinking I guess. Shows how many clowns are in the world lol

SunnySideUp

Surely it's the opposite?

The current high rates should make people pay off their debts.

Lower rates would encourage them to borrow more.

speedking

What does this reduction actually achieve wrt the economy? Fixed rate mortgages, high credit / store card rates, utility bills related to external factors, raw materials priced in $US, etc. what will change?

lozgti

Well,they can do whatever they want to interest rates.

Can't see it kick starting the housing market or solving peoples tens of thousands of pounds of debt with no lenders prepared to lend them money to pay it all off.

Especially having no equity anymore.

What a mess.

stilover

Nothing. Apart from saving accounts being hit again.

Last rate cut, the banks increased the borrowing rate to each other.

TelBoy

Very good question. A cynic (like me) would say not very much. But like all capitalist cycles, a huge part of what drives it is sentiment. It is, after all, driven by human spending and saving patterns. A reduction in borrowing costs will encourage people to spend, or at least save less, and that, in theory, will kickstart the economy. But the actual difference between 2% and 1.5% to the average man in the street? Negligible.

fivetide

iTrader: (1)

That's actually a good deal really. It means you have a relatively recent mortgage and while those on trackers or SVRs are seeing the payments go down (possibly not much further though as most agreements have a collar level they won't go below) anyone looking at a new mortgage is being asked for a massive deposit or facing much higher rates than yours. Check it out, you are probably still on a good deal by comparison.

5t.

TelBoy

Come again??