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handyman
Senior Member
Joined: 16 Jan 2006
Posts: 2863
Location: Alderley Edge, Cheshire
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 Posted: Thu Nov 06, 2008 12:07 pm Post subject: interest rate cut |
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1.5%  the biggest cut ever
will it work?
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skiking
Senior Member
Joined: 13 Sep 2006
Posts: 3086
Location: Cheshire
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| Posted: Thu Nov 06, 2008 12:39 pm Post subject: |
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Will if f*ck
I'm not sure its going to make much difference. I don't think banks will pass it all on 
The whole sentiment of lending will need to change - for the better. People in this country are going to have to save before buying instead of seeing something then just putting it on the never never.
Home loans are (should) require a bigger deposit and none of this 125% loans.
Until this gets sorted out here and especially in the US then nothing is going to really change. |
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handyman
Senior Member
Joined: 16 Jan 2006
Posts: 2863
Location: Alderley Edge, Cheshire
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| Posted: Thu Nov 06, 2008 2:14 pm Post subject: |
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the tsb and nationwide will be passing on the full amount 
i have a tracker with nationwide, so should save a bit
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skiking
Senior Member
Joined: 13 Sep 2006
Posts: 3086
Location: Cheshire
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| Posted: Thu Nov 06, 2008 2:32 pm Post subject: |
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Tracker is the only mort that will automatically change with the rate. However, some sneaky banks have raised the gap between BoE base rate the the tracker rate  .
My fixed rate is due to expire next summer and as I'v got 25-40% equity in the house (allowing for it to continue going down in price) I'm hoping that I can tie up a new deal early next year and take advantage of these 'special' measures - have been lucky the last 2 occasions I've re-mortgaged, can I be lucky a third time  |
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ultimatehandyman
Site Admin
Joined: 16 Jul 2005
Posts: 9740
Location: Darwen, Lancashire
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| Posted: Thu Nov 06, 2008 2:39 pm Post subject: |
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These idiots who control the interest rates really make me laugh.
They increase it 0.5% or 0.25% and then when the sh*t hits the fan they drop it by 1.5% 
My savings are suffering already 
One current account that I have used to pay me about £8 per month in interest, all of a sudden it dropped to £1 per month interest, yet the amount in the account has increased. This is clearly a massive rip off 
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Hoovie
Devon DIYer
Joined: 27 Jul 2007
Posts: 8036
Location: East Devon
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| Posted: Thu Nov 06, 2008 2:45 pm Post subject: |
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| handyman wrote: |
the tsb and nationwide will be passing on the full amount
i have a tracker with nationwide, so should save a bit |
What is the typical gap between Bank of England Base Rate and the Tracker Rate?
I went for a fixed rate when bought my new house back in Feb 2006 and (with remarkable hindsight it turns out) went for a 10 year fixed deal, on the theory that mortgage rates could possibly drop by about 1% tops, but were far more likely to head upwards.
And interestingly - to highlight the lending craze back then, when we were working out how much we wanted to borrow, the Nationwide adviser was saying "Oh, you could borrow THIS much if you like" - like 2.5 times how much we needed - and wanted - to have a mortgage for
No wonder people borrow too much and get into trouble if they are encouraged to take things to the limit and don't resist the tempation 
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Hoovie
Devon DIYer
Joined: 27 Jul 2007
Posts: 8036
Location: East Devon
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| Posted: Thu Nov 06, 2008 2:50 pm Post subject: |
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Dropping the interest rate like this is supposed to stop you saving!
Theory is you decide it is not worth saving anymore and just spend your dosh, thereby getting the economy running.
Best best for anyone with a Mortgage and savings is to scrap the savings acccounts and stick it into mortgage overpayments - that will get you something like an instant 7% gross return
I save nothing - just overpay on the mortgage. And if money is needed, then could just take it out the Mortage account.
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I went to a bookstore and asked the saleswoman, "Where's the self-help section?"
She said if she told me, it would defeat the purpose. |
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handyman
Senior Member
Joined: 16 Jan 2006
Posts: 2863
Location: Alderley Edge, Cheshire
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| Posted: Thu Nov 06, 2008 3:07 pm Post subject: |
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the gap on our mortgage is ........I dont know, but it was the smallest gap for a variable mortgage with the amount we have outstanding
We do the same, not much savings, and the rest in the mortgage. You can then take it out if requiring money.
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handyman
Senior Member
Joined: 16 Jan 2006
Posts: 2863
Location: Alderley Edge, Cheshire
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| Posted: Thu Nov 06, 2008 3:10 pm Post subject: |
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just looked at account, and rates have been as follows
"01 January 2008 5.83%
01 March 2008 5.58%
01 May 2008 5.33%
01 November 2008 4.83%"
With their announcement, there should be 1.5% off the November figure
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thescruff
Senior Member
Joined: 10 Mar 2008
Posts: 5665
Location: Bath
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| Posted: Thu Nov 06, 2008 3:44 pm Post subject: |
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Sounds like the Halifax Chez.
They changed the rules around, so you only pay interest on the first £2500.00, and you only get the higher rate if you pay a £1000.00 plus into the account.
To get over the last problem you can withdraw and pay back, or swop between accounts.
Any bets Brown nose will mention the euro v pound soon.
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skiking
Senior Member
Joined: 13 Sep 2006
Posts: 3086
Location: Cheshire
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| Posted: Thu Nov 06, 2008 4:20 pm Post subject: |
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I noticed that the Abbey put up its tracker rates by 0.5% to new customers on Tuesday with the wide expectation that the BoE would reduce the base rate by 0.5% thus negating any drop the BoE would do today, or so they thought  |
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Hoovie
Devon DIYer
Joined: 27 Jul 2007
Posts: 8036
Location: East Devon
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| Posted: Thu Nov 06, 2008 4:24 pm Post subject: |
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| handyman wrote: |
just looked at account, and rates have been as follows
"01 January 2008 5.83%
01 March 2008 5.58%
01 May 2008 5.33%
01 November 2008 4.83%"
With their announcement, there should be 1.5% off the November figure |
0.33% above base is very good I don't reckon such a low tracker will ever exist again! I can't see how the banks can make enough money from so a low difference to make it worthwhile for them to lend
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I went to a bookstore and asked the saleswoman, "Where's the self-help section?"
She said if she told me, it would defeat the purpose. |
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big-all
Pro Carpenter
Joined: 16 Dec 2006
Posts: 2775
Location: redhill surrey an auld reekie laddie
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| Posted: Thu Nov 06, 2008 4:52 pm Post subject: |
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| thescruff wrote: |
Sounds like the Halifax Chez.
They changed the rules around, so you only pay interest on the first £2500.00, and you only get the higher rate if you pay a £1000.00 plus into the account.
To get over the last problem you can withdraw and pay back, or swop between accounts.
Any bets Brown nose will mention the euro v pound soon. |
other tricks is the introductory offer get you in and reduce the rate after 6 months and every 3 months or so reduce the interest by 0.25% hidden in with other rates movements
the seceret is move when the introductory offer expires
exactly the same happens with switching gas and electric suppliers they give you a lower rate then boost it up over 6 months to a year to the normal rate
so keep switching as it cost you money if you dont have an "introductory period"swop after 9 months
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handyman
Senior Member
Joined: 16 Jan 2006
Posts: 2863
Location: Alderley Edge, Cheshire
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| Posted: Thu Nov 06, 2008 4:55 pm Post subject: |
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there was offers of 0% above the base rate when we were looking! But with a £800 odd arrangement fee, it didnt work out as enough of a saving over the 2 years of the deal.
This deal was for 2 years, with an option to re sign for a further 2 years at the same rate, and £0 arrangement fee
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Go on, adopt a greyhound http://www.dgrescue.org.uk/ ..........................................................................
Last edited by handyman on Thu Nov 06, 2008 5:07 pm; edited 1 time in total |
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big-all
Pro Carpenter
Joined: 16 Dec 2006
Posts: 2775
Location: redhill surrey an auld reekie laddie
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| Posted: Thu Nov 06, 2008 4:57 pm Post subject: Re: interest rate cut |
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| handyman wrote: |
1.5% the biggest cut ever
will it work? |
compared to the last time its worth a lot lot more this time
this time its a 30ish percentage drop in interest rates
last time with the interest rates where in double figuures so only a 12 ish percent reduction
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