Interest Rates down to 0.5%!!

[Spit]

My god, my mortgage is for nothing!!

 

[Duke]

Damn, savings will make nothing at all now.

 

[Admiral Huddy]

They are running out of headroom.. 0% is looking more likely now.

 

[Participant]

Thank god I didn't fix my mortgage last summer.

 

[Reality|Bites]

So what does that mean for first time buyers?

 

[RockLobster]

So what does that mean for first time buyers?

Nothing. You will still need a good deposit (25%) to get a decent interest and rightly so. Gone are the days of 100% mortgages. House prices will drop to 2002 level.

 

[Admiral Huddy]

So what does that mean for first time buyers?

Well unless the banks actually start lending, then nothing much other than a cheaper mortgage..

-ve rates by summer?

 

[House]

I feel really really good now that mines fixed at 6% above the base rate. and My saving arent getting intrest anymore.

Timings everything I guess, fixed it the lowest point first time and the highest the second.

Cant be lucky everytime, guess its time dump my savings into early repayments

 

[touch]

I have an interest-only mortgage thats now at about a third of what it was when i started paying it in september.
Will the bank (RBS) decide that they wont bother putting it down any further? (afaik there are clauses in the contract that protect them from situations like this with low interest and have a minimum rate that they can charge?)

 

[knowledge123]

No point in me having my ISA, then
And how many banks will actually pass the reduction (well they will to savers, definitely). :/

 

[Cosimo]

I suppose this means that they will now start printing money.

 

[Egon]

"on the verge of quantitive easing".... is that basically printing new money and passing it on to the banks?

I assume that's a last resort as that is just going to lower the value of the pound even further !?!?

Edit: Simulatorman beat me to it !

 

[RockLobster]

No point in me having my ISA, then
And how many banks will actually pass the reduction (well they will to savers, definitely). :/

You can still get 4.01% return if you be quick which isn't to bad considering.

 

[[TW]Fox]

I suppose this means that they will now start printing money.

Not printing money, no, but quantative easing.

 

[touch]

-ve rates by summer?

How would this work?
Surely everybody would withdraw all their money from the banks and make things worse?
Would you get paid to take a loan?

 

[Knubje]

This may be a stupid question regarding finance but I'll field it out there anyway.

Now I am getting screwed as a saver thanks to good old government, but what about interst rates on say Credit Cards...which don't move at all?

Funny how when you owe banks etc money - they bleed you dry.

Yet if the bank owes you a little somethin' somethin' - you get **** all.

Can someone explain it at all? Other than "Life's a beach"?

 

[aardvark]

these idiots have no idea what they are doing - massive inflation in the years to come.

 

[Admiral Huddy]

How would this work?
Surely everybody would withdraw all their money from the banks and make

Precisly, so people then spent rather than save.


We have already tested our banking software this year in case of.

 

[Kemik]

Well unless the banks actually start lending, then nothing much other than a cheaper mortgage..

-ve rates by summer?

They won't go in to negative rates. That's economic suicide.

 

[rsatd]

They won't go in to negative rates. That's economic suicide.

Well, they could just charge people to use the banking service instead...