Jambo83 Posted November 6, 2008 Share Posted November 6, 2008 Cut by 1.5% Woo Hoo!! I have a staff mortgage and only pay the base rate, hopefully HBOS don't do something sneaky like changing the staff product Link to comment Share on other sites More sharing options...
Griclesfield Posted November 6, 2008 Share Posted November 6, 2008 decent price cut. heard earlier they were to announce at midday, good news for loans, credit cards, mortgages ... woo hoo. that will be a total monthly saving for me of around ?40. Link to comment Share on other sites More sharing options...
Mike Hunt Posted November 6, 2008 Share Posted November 6, 2008 Hopefully speed up the housing market and increase new mortgages quicker than expected BRING BACK 100% MORTGAGE Link to comment Share on other sites More sharing options...
Jambo83 Posted November 6, 2008 Author Share Posted November 6, 2008 My mortgage will have come down ?130 per month in the last 14 months when this kicks in Link to comment Share on other sites More sharing options...
Commander Harris Posted November 6, 2008 Share Posted November 6, 2008 if the banks pass the decrease on. Link to comment Share on other sites More sharing options...
Mike Hunt Posted November 6, 2008 Share Posted November 6, 2008 if the banks pass the decrease on. This cut should be passed on, or at least 1% of it. That would make both the lenders and the consumers each gaining a 1% cut over the last couple of months. Link to comment Share on other sites More sharing options...
Commander Harris Posted November 6, 2008 Share Posted November 6, 2008 This cut should be passed on, or at least 1% of it. it'll be passed on to the savers anyway! interest rates below inflation, super. Link to comment Share on other sites More sharing options...
Mike Hunt Posted November 6, 2008 Share Posted November 6, 2008 it'll be passed on to the savers anyway! interest rates below inflation, super. Yes all of a sudden inflation takes a back seat im afraid Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted November 6, 2008 Share Posted November 6, 2008 There is no way this cut will be passed on in full. Here in Australia, the RBA cut interest rates by 0.75% on Tuesday. Only 0.62% at most was passed on. You will be lucky if 1% is passed on by UK banks due to the costs of funding. As for 100% mortgages Link to comment Share on other sites More sharing options...
neilnunb Posted November 6, 2008 Share Posted November 6, 2008 "However Lloyds TSB has promised to pass on the rate cut in full to its variable rate mortgage customers." Link to comment Share on other sites More sharing options...
Guest GhostHunter Posted November 6, 2008 Share Posted November 6, 2008 Prime Minister Gordon Brown was asked about this problem in the House of Commons on Wednesday because Abbey had just raised its tracker mortgage rates for new customers. "We want the banks and building societies to pass on the interest rate cuts to their mortgage holders," he said. He doesn't lie, does he ? Link to comment Share on other sites More sharing options...
Peebo Posted November 6, 2008 Share Posted November 6, 2008 I LOVE the credit crunch. Link to comment Share on other sites More sharing options...
Mike Hunt Posted November 6, 2008 Share Posted November 6, 2008 There is no way this cut will be passed on in full. Here in Australia, the RBA cut interest rates by 0.75% on Tuesday. Only 0.62% at most was passed on. You will be lucky if 1% is passed on by UK banks due to the costs of funding. As for 100% mortgages BRING BACK SELF CERT 100% MORTGAGES Link to comment Share on other sites More sharing options...
shaun.lawson Posted November 6, 2008 Share Posted November 6, 2008 I LOVE the credit crunch. You won't if we turn into Japan. There's probably even people out there who think deflation could be a good thing; believe me, it won't be. And in the much longer term, with huge amounts of debt passed on to a workforce which is ageing anyway, there'll be higher taxes, declining salaries and a declining quality of life ahead. Our future Chinese masters must be rubbing their hands together in glee... Link to comment Share on other sites More sharing options...
H J Simpson Posted November 6, 2008 Share Posted November 6, 2008 I openly admit I'm not great on this sort of thing. Is this likely to affect the exchange rate on the pound against the dollar? Cheers Link to comment Share on other sites More sharing options...
TommyBoy Posted November 6, 2008 Share Posted November 6, 2008 Excellent. Petrol is going down again as well. I'm off shopping!!!!!!!!!!!! Link to comment Share on other sites More sharing options...
The Doctor Posted November 6, 2008 Share Posted November 6, 2008 Excellent. Petrol is going down again as well. I'm off shopping!!!!!!!!!!!! That's the plan TommyBoy, get Christmas shopping, max out your credit cards, kick start the economy. You might as well, we're all fecked if it goes wrong and if it doesn't, well, it'll be okay! Have fun! Link to comment Share on other sites More sharing options...
topcat Posted November 6, 2008 Share Posted November 6, 2008 Yes all of a sudden inflation takes a back seat im afraid I take it your worried about the economy overheating? Link to comment Share on other sites More sharing options...
Peebo Posted November 6, 2008 Share Posted November 6, 2008 You won't if we turn into Japan. Oh, I dunno. Those personal karaoke booths look a pretty good laugh, and those capsule hotels could come in handy. Link to comment Share on other sites More sharing options...
The Doctor Posted November 6, 2008 Share Posted November 6, 2008 If you've got a tracker mortgage of 100K you'll be saving about ?120 per month. Nice. Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted November 6, 2008 Share Posted November 6, 2008 I'm shocked that Lloyd's has cut by the full amount. A cynic would suggest its new major shareholder is at it! Anyway, it shows how spooked the BOE is about the economy Link to comment Share on other sites More sharing options...
Peebo Posted November 6, 2008 Share Posted November 6, 2008 I'm shocked that Lloyd's has cut by the full amount. A cynic would suggest its new major shareholder is at it! Anyway, it shows how spooked the BOE is about the economy Without knowing the precise ins and outs of the recent Government "bail-out" of a few of the banks, I'd be surprised if they were not feeling pressure to pass on these cuts. Link to comment Share on other sites More sharing options...
easty1985 Posted November 6, 2008 Share Posted November 6, 2008 its nae good for me..im trying to sell business banking deposit accounts! thats the good rate oot the fecking window!! anyone need an account?? Link to comment Share on other sites More sharing options...
The Old Tolbooth Posted November 6, 2008 Share Posted November 6, 2008 if the banks pass the decrease on. I had emails today from 7 different lenders telling me that they are withdrawing their tracker rates and reviewing them next week, you can bet your bottom dollar that the full 1.5% wont be passed onto customers. Fair play to Lloyds TSB however as they have announced they will pass the full amount on. The people who are really benefiting are the folk on trackers who are linked to the BOE rate, the average ?150k mortgage will save around ?140 per month, happy days for those clients Link to comment Share on other sites More sharing options...
Deodato Posted November 7, 2008 Share Posted November 7, 2008 Some thoughts from me: - Slashing rates by 150bp to 3 percent was more than what the market had expected, (100bp was anticipated), ...so why? - It?s achieved its goal, as market interest rate expectations have shifted down materially but sterling has been broadly stable. - It?s impact on price of credit is debatable, with ?under review? status being declared by most banks, perhaps half being passed on to mortgages - Its impact on availability of credit less so, as if prices of assets keep falling there?s not much incentive to spend and more to save. - Most Investment Banks still have rates of 2% for 2009 Q2 factored in ? no change on the forward look. - So, slightly cheaper mortgagees, but accelerating declines in house prices. - As George Magnus taught me, deleveraging is where one (destruction of debt) feeds off the other (deconstruction of assets) ? self reinforcing. Hope this helps, Deodato Link to comment Share on other sites More sharing options...
davemclaren Posted November 7, 2008 Share Posted November 7, 2008 I had emails today from 7 different lenders telling me that they are withdrawing their tracker rates and reviewing them next week, you can bet your bottom dollar that the full 1.5% wont be passed onto customers. Fair play to Lloyds TSB however as they have announced they will pass the full amount on. The people who are really benefiting are the folk on trackers who are linked to the BOE rate, the average ?150k mortgage will save around ?140 per month, happy days for those clients I believe LTSB had to under the terms of their products. Link to comment Share on other sites More sharing options...
I P Knightley Posted November 7, 2008 Share Posted November 7, 2008 I openly admit I'm not great on this sort of thing. Is this likely to affect the exchange rate on the pound against the dollar? Cheers One theory says yes. Those with savings in the UK have just had bad news that their income is coming down. They might be tempted to switch savings to somewhere with higher rates, say the US. If that were to happen en masse, you'd see sterling fall and the dollar rise due to the supply/demand pattern. In reality, though, folk are unlikely to choose the US as a safe investment at the moment. so any demand would be for a number of different currencies, diluting the effect. All that said, there are so many other factors at play in determining the exch rate that I doubt you'd see a huge, predictable change as a result of this news. Link to comment Share on other sites More sharing options...
david mcgee Posted November 7, 2008 Share Posted November 7, 2008 I had emails today from 7 different lenders telling me that they are withdrawing their tracker rates and reviewing them next week, you can bet your bottom dollar that the full 1.5% wont be passed onto customers. Fair play to Lloyds TSB however as they have announced they will pass the full amount on. The people who are really benefiting are the folk on trackers who are linked to the BOE rate, the average ?150k mortgage will save around ?140 per month, happy days for those clients Aye its brilliant, their mortgage for ?150,000 is now for a house worth less than ?100,000 and they are in imminent danger of being made redundant. But....................................... ...............they are saving ?140 a month. ( if their tracker doesnt have a collar) Happy days indeed! Link to comment Share on other sites More sharing options...
Geoff Kilpatrick Posted November 7, 2008 Share Posted November 7, 2008 Aye its brilliant, their mortgage for ?150,000 is now for a house worth less than ?100,000 and they are in imminent danger of being made redundant. But....................................... ...............they are saving ?140 a month. ( if their tracker doesnt have a collar) Happy days indeed! To be fair, if people have no concerns over redundancy the value of the house isn't an issue provided they can service the mortgage and don't want to move. Link to comment Share on other sites More sharing options...
tam_1955 Posted November 7, 2008 Share Posted November 7, 2008 For any of you out there that have savings. Nationwide Building Society Flexaccount holders were still being offered a 6 month savings bond paying a mighty 6.25% interest a couple of hours ago. It needs to be bought immediately online as it is sure to be reduced drastically by start of business today. Link to comment Share on other sites More sharing options...
H J Simpson Posted November 7, 2008 Share Posted November 7, 2008 One theory says yes. Those with savings in the UK have just had bad news that their income is coming down. They might be tempted to switch savings to somewhere with higher rates, say the US. If that were to happen en masse, you'd see sterling fall and the dollar rise due to the supply/demand pattern. In reality, though, folk are unlikely to choose the US as a safe investment at the moment. so any demand would be for a number of different currencies, diluting the effect. All that said, there are so many other factors at play in determining the exch rate that I doubt you'd see a huge, predictable change as a result of this news. Cheers mate Link to comment Share on other sites More sharing options...
Peebo Posted November 7, 2008 Share Posted November 7, 2008 To be fair, if people have no concerns over redundancy the value of the house isn't an issue provided they can service the mortgage and don't want to move. Amen to that...particularly if you can receive a decent rent for the property. Link to comment Share on other sites More sharing options...
Peebo Posted November 7, 2008 Share Posted November 7, 2008 - Slashing rates by 150bp to 3 percent was more than what the market had expected, (100bp was anticipated), ...so why? If the markets correctly anticipate a macroeconomic change, it's impact is weakened. Link to comment Share on other sites More sharing options...
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