Bank Base Rate down by 1.5 %!

[Greebo]

Although I'm not getting blinkered into staying with this for ever. I've got about 24 years left on my 115k mortgage and historically it's averaged maybe 6% - 7% so I will be looking at fixing it for term if any really good fixed rates come out.

Doubt you will see any "good" long term fixed rates on offer cause the banks know that information too!

Let's face it, the base rate isn't going to stay at 3% for the next 5 years, never mind 24 years. That plus banks are currently "borrowing" the money to lend to you at 5.8% and they want to make a profit on top as well, don't expect to see any long term fixed rates offerered below 7% until the LIBOR rate drops a lot and even then you will be lucky to see it drop to under 6%.

If you think you might be able to pick up a 3% fixed rate for 24 years your dreaming

 

[Rotty]

I wonder what the best tracker deals available for term were, surely what we've got must have been about the best ever available.

Although I'm not getting blinkered into staying with this for ever. I've got about 24 years left on my 115k mortgage and historically it's averaged maybe 6% - 7% so I will be looking at fixing it for term if any really good fixed rates come out.

my +0.14% was for term


unfortunately that house is in process of being sold

 

[a1ex2001]

Rates as low as 2% are being predicted for next year, your gonna love it

Provided you still have a job to meet those new lower payments

 

[Gilo]

Yea I'm with C&G. Surely not having a collar in place is a good thing, if I'm right in thinking a collar would limit how low the tracker could get to.

Having a collar means is that if the BoE rate goes below a certain level, then the tracker will either not go below that level, or the tracking margin could also change to a different margin, so its best not having one

 

[meghatronic]

Well my ISA is going to take a hit. AGAIN.

 

[Scam]

So much of the current situation is caused by people borrowing more than they can afford. So the governments reaction is.... to penalise those with savings and 'reward' those with 100% mortgages.

My point exactly

 

[Jonnycoupe]

So much of the current situation is caused by people borrowing more than they can afford. So the governments reaction is.... to penalise those with savings and 'reward' those with 100% mortgages.

Interesting.

Assuming they have trackers mortgages. The government didnt set the rate either.

 

[[TW]Fox]

Well no, the BoE did, but..

 

[daven1986]

*hugs fixed rate savings account*

but in all seriousness this is good news. I am glad Lloyds are being sensible and handing on the full cut.

 

[SKILL]

Rates as low as 2% are being predicted for next year, your gonna love it

It wasn't that long ago that oil was predicted to hit $200, not quite on course for that now though...

 

[LOAM]

trouble is its a perpetual circle, they need people to spend to boost the economy, people will spend by either borrowing more because its cheap to do so again and or spending what they see as gifted "expendable income", its completely unsustainable and only attempting to put off the inevitable

 

[chipperhead]

If you think you might be able to pick up a 3% fixed rate for 24 years your dreaming

No mate, I don't expect 3%. A fixed rate for 25 years at 5% and I'd certainly consider, although I can't find any 25 year fixes at the moment.

 

[Bennie-Mac]

Yay im on a fixed deal at the previous high rate of interest...wooo

 

[Rebelius]

haven't read the whole thread yet, but my 100k mortgage is an interest only tracker, so I'm laughing - over £100 extra in pocket each month. Which for a student makes a huge difference

 

[sven256]

I see this as a very short sighted approach by the bank of England.
For me this is just asking for a massive collapse, with how the modern banking system works.

For a mortgage now, a bank does not need any real money they just create it. Hence no need for depositors hence no need for higher interest rates too keep them happy. Instead they just rely on a signature saying I'm going to pay back xxx amount.

 

[Andrew_McP]

Is that really getting the economy going ?

What we are witnessing is the BoE straddling the corpse of the old UK economy and desperately applying CPR. They may keep it alive for as long as they keep pumping in artificially cheap money, but what the economic body needs is a systemic organ and attitude transplant. Until we stop relying on foreign savers and start growing our own, this country is getting poorer every single day.

Even if this tactic works in some screwed up way, the UK economy will be increasingly generating income for foreign savers and investors, not our own. This appeared to be successful as long as GDP kept growing fast enough to mask the truth, but it was, and is, unsustainable. We will end up in the same economic dead end the USA is in... only without the luxury of being the world's reserve currency, or having massive natural resource wealth. That allows the USA to keep the 'emperor's new clothes' thing running even now, long past the point of no return for lesser economies.

This may sound gloomy, but until the UK faces its past excesses and reinvents itself, the next step will be to call the undertaker in the form of the IMF.

Andrew McP

 

[LOAM]

my 100k mortgage is an interest only tracker, so I'm laughing

Surely this sentence breaks some form of logic rule doesn't it ?

 

[BaZ87]

If you're on a tracker you'll be laughing,

LOL

 

[megakid]

If you're on a tracker you'll be laughing, unfortunately my tracker ended a couple of months ago!

I'm tracking at a discount of -0.29%.

2.71% for me on a fully flexible interest only mortgage - Which begs the question - should I continue to overpay or shall I invest all the money and just pay interest?

 

[megakid]

So much of the current situation is caused by people borrowing more than they can afford. So the governments reaction is.... to penalise those with savings and 'reward' those with 100% mortgages.

Interesting.

The entire western banking system is dependant on this. Very basically, you need perpetual debt or there will be no growth.