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

[A210AMG]

All depends how much you owe? not how much you pay...

 

[crockers]

All depends how much you owe? not how much you pay...

Now is a very good time to pay off what capital you can - unless you need the savings to boost the economy....

 

[A210AMG]

Very GOOD point

If yours has gone down pay the same as you were paying before the drop, you will not miss it but...


Save years off the mortage and thousands off the interest.


(well it would save years if the rates carried on low and you carry on paying at the pre dropped price)

 

[Howard]

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

You need to speak to them then Karl ...

Mine is tracking at .44 above BOE base ... I'm with the Halifax , they have no collar.

So as of today it is 1.44% ....

My mortgage has dropped nearly £400 since this all started ....

 

[kikkthecat]

I see the Barstewards have done it again. down to 0.5% now.

As someone who owes nothing and have a fair amount of savings I'm appalled.
I used to have a mortgage so I know how easy it is to cheer at the drops and hiss and boo at the rises but the drops here are several steps too far.
There are alledgedly 7 times more savers than borrowers in this country so while some may be getting the gold mine, we're getting the shaft.

 

[Carrotchomper]

I see the Barstewards have done it again. down to 0.5% now.

As someone who owes nothing and have a fair amount of savings I'm appalled.
I used to have a mortgage so I know how easy it is to cheer at the drops and hiss and boo at the rises but the drops here are several steps too far.
There are alledgedly 7 times more savers than borrowers in this country so while some may be getting the gold mine, we're getting the shaft.

Have you considered shifting the money? Buying gold perhaps...

 

[SilverSaloon]

i'm wondering whether it would be worth cancelling my fixed rate mortage and paying the early penalty.....

 

[Smiley]

I see the Barstewards have done it again. down to 0.5% now.

As someone who owes nothing and have a fair amount of savings I'm appalled.
I used to have a mortgage so I know how easy it is to cheer at the drops and hiss and boo at the rises but the drops here are several steps too far.
There are alledgedly 7 times more savers than borrowers in this country so while some may be getting the gold mine, we're getting the shaft.

If you need the interest to live on then I sympathise. Have you looked at buying gilts in that case? They are not risk free and cpaital value may fall but they are yielding about 4.5% right now if you need secure income.

If you are working and you are just a bit p***d off that your interest is lower then you should be happy. Your capital should be worth more next year than it is today. And look on the bright side; imagine if your mortgage were greater than the value of your house - which is still falling - the lower interest payments are small consolation.

 

[crammy69]

I see the Barstewards have done it again. down to 0.5% now.

As someone who owes nothing and have a fair amount of savings I'm appalled.
I used to have a mortgage so I know how easy it is to cheer at the drops and hiss and boo at the rises but the drops here are several steps too far.
There are alledgedly 7 times more savers than borrowers in this country so while some may be getting the gold mine, we're getting the shaft.

I Know how you feel, the thing is, there may be 7 times more individuals that save rather than borrow, but those that borrow, do so in larger amounts (average mortgage alot bigger than average savings account).

Whilst it's annoying on the face of it to see interest income drop in absolute terms, the things you could possibly spend savings on have dropped by alot more (Houses -20%) (Cars - 20% or more) (shares -50-70%) so in those terms savers can be better off. However when it comes to the basics such as Food & Heating I dont see those falling.

 

[Smiley]

i'm wondering whether it would be worth cancelling my fixed rate mortage and paying the early penalty.....

you should look at it if you have 35 to 40% equity in your house - you should be able to get a cracking mortgage.

 

[Mudster]

It's the savers that are actually financing this fiasco.

 

[Stratman]

Great. Those of us who lived within our means and saved a bit for our impending retirement are now being royally shafted to pay for the feckless idiots who believed all the hype and spent money neither they nor anybody else had.

 

[Mudster]

With all these rate cuts and a fall in my tracker mortgage to silly levels I've never had so much disposable income with so little urge to spend it on anything whatsoever.

Yet absolutely no insentive to invest or save it in anything.

I guess the only hope the government has is a period of inflation circa the 70's...can't see it myself. Who can afford to pay all the salaries?

 

[crockers]

With all these rate cuts and a fall in my tracker mortgage to silly levels I've never had so much disposable income with so little urge to spend it on anything whatsoever.

Yet absolutely no insentive to invest or save it in anything.

I guess the only hope the government has is a period of inflation circa the 70's...can't see it myself. Who can afford to pay all the salaries?

Well if quantative easement gets out of control ..............salaries are the last of your problems....two examples of QE - Germany 1930's - Zimbabwe now...ok extreme examples but examples all the same ...Japan used QE in the '90s to no avail.....

So now we all sit back and wait.............tick tick tick tick

 

[janner]

I have a savings account that pays 0.75% below base rate. Maybe I'm now paying the bank to look after my money? I think I'll have to ring them

 

[Dieselman]

I have a savings account that pays 0.75% below base rate. Maybe I'm now paying the bank to look after my money? I think I'll have to ring them

Give it to me to look after, I'll only charge 0.2% instead of their greedy 0.25%....

 

[Rory]

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 !

Colleague of mine is at 0.18% above base with no collar with Woolwich. He's miffed as he just missed out on their 0.09% offer.

He's a typical Southerner - mortgaged beyond the hilt on Interest Only.

I suggested now is a great opportunity to start paying back some of the capital and he looked at me as if I was mad.

 

[crammy69]

Those with trackers really should stick their mortgage 'windfalls' away ready for the time in the non-too distant future when the BOE is forced (by the IMF or a Gilt Strike) to put rates up to 10%. On the other hand this would wipe so many borrowers out that maybe their wise to just hold onto the cash ready for when they hand the keys back!!

 

[janner]

Give it to me to look after, I'll only charge 0.2% instead of their greedy 0.25%....

Probably safer under your mattress too

 

[DITTRICH]

Having saved and paid off my mortgages and having all my property free of debt and substantial savings in cash, the only comfort I get is not having to pay 40% tax on any interest to gordon. Yes I am losing out and will have to invest in bonds, euqities or rental property to achieve a decent return. My property yields are better than my bank yields at present which wasn't true 9m ago.
Les