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Bank of England
ThreadKiller
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Blimy!
Hopefully the banks will pass a chunk of this on rather than lining their pockets.0 -
Going to make the Mortgage chat I have with Mr Stanmore interesting0
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Lloyds have already said they would pass it on in full from Dec 10
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[cite]Posted By: Shag[/cite]Lloyds have already said they would pass it on in full from Dec 1
I would hope all government owned institutions would be forced to pass it on.0 -
Got a tracker mortgage, so I'm now paying under 4%.
Reeeeeeesult.0 -
NRock don't seem to pass on anything like the full amount which I find odd as they are government owned.
As I understand it the interbank lending rate is more influential over the variable rates than the base rate, however it doesn't seem fair that they aren't matching other institutions when they are gov owned. Sort it out Mr Brown!0 -
Great news (apart for savers) a shot in the arm for the economy. I can't ever recall a 1.5% cut before. (Although I'm sure someone can).0
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problem is there are still massive confidence issues, and such dramatic cuts might not help this. It's all very well making borrowing cheaper and putting a little bit extra in people's pockets, but getting them to spend it rather than save it is another issue, in my opinion.0
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True but if people have an extra £100 pm in their pocket some of it will be spent.0
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All good for the household, especially with christams nearly upon us, however there are still many issues to sort out in terms of the housing and construction markets, if the banks dont pass this on there has to be serious questions from the goverment as to why it hasnt been passed on0
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oh happy happy days got a base rate tracker0
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Also worrying is what affect this will have on currency and the value of the pound which also has an impact on inflation due to imports costing more, I assume however this is globally coordinated measure?0
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[cite]Posted By: razil[/cite]Also worrying is what affect this will have on currency and the value of the pound which also has an impact on inflation due to imports costing more, I assume however this is globally coordinated measure?
No its not coordinated as the MPC is independent but it will have a very positive impact on the Pound especially vis a vis Europe.0 -
please can you explain? my limited understanding is that lower interest rates mean less people buying sterling meaning sterling would devalue, where am I going wrong...? Sure it will make imports go up, but then we have such a small manufacturing base anyway that we can't take much advantage of it.0
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[cite]Posted By: Brunello[/cite][cite]Posted By: Shag[/cite]Lloyds have already said they would pass it on in full from Dec 1
I would hope all government owned institutions would be forced to pass it on.
% of LTSB owned by the government currently = zero0 -
Generally means people will spend more, as youre not tempted to save by high interest rates, and therefore the hope is this will kick-start the economy which will be viewed as having a positive impact on the value of sterling.
MInd you having a look at Bloomberg that hasnt happened yet as £ is still falling against everything but the €0 -
I thought it was only Barclays of the big high street banks who didn't take Government money (and therefore become part nationalised..)0
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Just shows how bad things are out there - as a banker I know!!
Careful re tracker mortgages as some have a "collar" ie there is a minimum rate you pay, so cuts in base rate may have no affect.0 -
[quote][cite]Posted By: razil[/cite]I thought it was only Barclays of the big high street banks who didn't take Government money (and therefore become part nationalised..)[/quote]
It is only NatWest/RBS, HBOS and Lloyds who are taking Government money but its still not gone through yet. The solicitors are still working on it. Only got my Lloyds voting papers through yesterday.0 -
Oh OK. But Northern Rock are, and BB?0
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[cite]Posted By: razil[/cite]please can you explain? my limited understanding is that lower interest rates mean less people buying sterling meaning sterling would devalue, where am I going wrong...? Sure it will make imports go up, but then we have such a small manufacturing base anyway that we can't take much advantage of it.
What we have seen is the return of global economic cycles with the USA exporting their economy around the world with The UK being first stop. What the aggresive rate cut has done has put us nearer the end of the downturn and nearer the beginning of some signs of growth. Europe on the other hand has further to fall as the recession hasnt bitten as much but will eventually and their relatively wimpish rate cut will not do anything to stimulate growth. Cross border investment is not based on interest rates at the moment but on risk. Investment into the UK is cheap at present and if it is viewed things could get better then that investment will start to grow and therefore Sterling will rise.0 -
Disgusting move but not unexpected.0
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[cite]Posted By: HardyAddick[/cite]Just shows how bad things are out there - as a banker I know!!
Careful re tracker mortgages as some have a "collar" ie there is a minimum rate you pay, so cuts in base rate may have no affect.
http://www.guardian.co.uk/money/2008/nov/01/mortgages-property
'Collared' - Well not with Abbey, RBS or Woolwich :-)0 -
I feel bloody lucky I took out that base-rate tracker when I did just before everything went t*ts up!
I make that over £200 per month extra in my dusty bin compared to what I was paying in the summer. I DEFINITELY will be doing my bit to kick start the ailing economy with my extra bunce ............ barman, Istick another large one in there please!!!0 -
[cite]Posted By: SantaClaus[/cite]Disgusting move but not unexpected.
Why disgusting? Interested in your views.0 -
People who i work with within the money and mortgage markets feel it is a panic move and that the banks will not pass off the 1.5% to its clients0
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[cite]Posted By: WhenIwasLittleBoy[/cite]People who i work with within the money and mortgage markets feel it is a panic move and that the banks will not pass off the 1.5% to its clients
They have to with BoE Base Rate trackers unless 'collared'.
And there will still be some more falls :-)0 -
I'm considering keeping my payments at the present rate if i can afford it as it pays the mortgage off quicker0
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1.5% reduction ...... so which banks/building societies will pass on a reduction?
I'm with the Northern Wreck, so I'll be lucky if they pass on 0.25%
I expect my monthly mortgage to go down by about £1.25, if I'm lucky.....0 -
check you are not penalised for paying extra, but otherwise DO IT![cite]Posted By: northstandsteve[/cite]I'm considering keeping my payments at the present rate if i can afford it as it pays the mortgage off quicker0
