Bank of England Cut base rate by 0.5% to 1%

[crammy69]

Cheaper mortgages all round, tough luck on the savers though.

 

[A210AMG]

Not so good if you fixed your mortage about 5 months ago and currently on a high rate....

I'm looking at changing but just doing the maths with redemption policy.. Not all bad only fixed for two years...

 

[Deleted member 6183]

Not so good if you fixed your mortage about 5 months ago and currently on a high rate....

I'm looking at changing but just doing the maths with redemption policy.. Not all bad only fixed for two years...

I've heard that rates are set to rocket in 2 years time

 

[A210AMG]

So could be better to changing and fix for longer on a better rate....

but then different people say different things, who really knows....no one

You make a choice and almost hope its right, we were happy with what we did given the un certain times I would rather know what I'm paying. It is a shame knowing we could save £150 or more a month on a tracker but its the what if....

 

[SilverSaloon]

i have a fixed rate mortgage

 

[robert.saunders]

I'm fixed for another 3 years, oh well

 

[Deleted member 6183]

So could be better to changing and fix for longer on a better rate....

but then different people say different things, who really knows....no one

You make a choice and almost hope its right, we were happy with what we did given the un certain times I would rather know what I'm paying. It is a shame knowing we could save £150 or more a month on a tracker but its the what if....

Sorry, I was just kidding and I have no idea what interest rates will do over the next few years.
You are, of course, right to take the view that you do. You fixed for 2 years because you could budget, you were happy with the rate and wanted the option to review in 2 years. Don't forget that the rate that you have secured would have seemed like a massive bargain almost anytime over the last 20 years.
One lender launched a 1 year fix at a stonking rate recently followed by Bank rate + 2 point something - They must assume rates are to rise.

This will make you feel better - I very nearly took a 25 year fixed rate at 9.99% in the mid 90's. Just before rates started dropping down to where the are today.

 

[crammy69]

Im just a bloke on t'internet, but with rates at historic lows, driven by fears of deflation/depression my fear is that the risk is in fact to the upside. I worry that all this printing of money (quantative easing etc) and much increased Govt Debt issuance, will lead to an interest rate spike somewhere down the road. My personal view would be to fix a mortgage for at least 5 years (10 would be better) if a rate under 5% became available. But then I am incredibly pessimistic when it comes to the economy right now, so could well be very wrong! (I hope I am wrong). The question is, if rates drop to Zero then all well and good (new Mercs PCP's all round), but can we afford the mortgage if it goes to 10%?.

 

[blondebier]

The floor limit on my tracker has already kicked in so mine won't go down.

Still, at 2.24% I can't really complain.

I feel sorry for the guys on long term fixed rate deals though.

 

[saorbust]

I'm at .34% above base, which is great. I know a friend who is at 1.01% below base - see here for details of how it affects him - http://www.birminghampost.net/birmi...harge-mortgage-interest-of-8p-65233-22838912/

8p !

 

[KillerHERTZ]

Woohoo! - except Halifax dont always pass it on to their customers, in 12 months my mortage just dropped £120 a month so far!

 

[GRAV888]

I'm on a fixed rate too. Signed up for it after that pratt on radio 2 said everyone go and get a fixed mortgage.
Fixed the gas prices too. Another wrong move.

 

[janner]

I guess the banks will claw back their profits by way of fees and screwing their savers. How do the banks justify £1000 or more as an 'arrangement' fee?

 

[Deleted member 6183]

I'm on a fixed rate too. Signed up for it after that pratt on radio 2 said everyone go and get a fixed mortgage.
Fixed the gas prices too. Another wrong move.

Martin Lewis?

 

[Seamster15]

Our mortgage has decreased by £1700 in the last few months, which is very nice, all money straight in to savings ready for the increase though.

 

[Thmsshaun]

Yes quite a result. With Nationwide at the minute and my mortgage dropped onto the SVR november last year. at 3.5% I will be staying with it for now

Just need to try and grab myself a deal before the rate starts to climb although looking at the current situation I think it will be a while before that happens.

 

[Thmsshaun]

Im just a bloke on t'internet, but with rates at historic lows, driven by fears of deflation/depression my fear is that the risk is in fact to the upside. I worry that all this printing of money (quantative easing etc) and much increased Govt Debt issuance, will lead to an interest rate spike somewhere down the road. My personal view would be to fix a mortgage for at least 5 years (10 would be better) if a rate under 5% became available. But then I am incredibly pessimistic when it comes to the economy right now, so could well be very wrong! (I hope I am wrong). The question is, if rates drop to Zero then all well and good (new Mercs PCP's all round), but can we afford the mortgage if it goes to 10%?.

#


This is what I have been telling my ex who is looking to get a house at the minute. It's all well and good looking what payments you can afford now but whatever you do look at what they be and make ***** you can still pay it should the rates spike a few years down the line.

 

[GRAV888]

Martin Lewis?

Yep.

 

[GRAV888]

Our mortgage has decreased by £1700 in the last few months, which is very nice, all money straight in to savings ready for the increase though.

What you live in, a castle?

If mine dropped by £1700, they would pay me £100 per month.

 

[crockers]

Don't see how rates affect bank's profits as they charge a % over base on trackers - and that % is their margin. On SVR - that is up to them to charge what they can but the difference between that and the amount paid to depositors is the margin. So there is the quandry - the BOE drops base rates so immediately the tracker rates drop. BUT the SVR will only drop if they drop deposit rates. That will be driven by market forces, govt pressure and publicity.

Just some thoughts............