Interest rates cut 0.5%

IveSeenTheLight

abaxas wrote: »

Grrrr

So it's base rate -0.5%
Savings rates -0.5%
Mortgage rates -0.0000000000001%

Everyone's a loser! (well apart from the banks)

A lot of mortgages are linked to the BoE rate, thus if the BoE rate goes down, so does peoples mortgages.

Of course there are also those on fixed rate and non trackers who wouldn't see the change

leviathan

hostman wrote: »

YAY - Punish savers by reducing rates, great idea

Yep. Try all they can to keep the housing bubble going and make the over priced houses more attractive.

It'll certainly fool many of the sheep at the bottom of the ladder.

steadysaver

Heyman wrote: »

Well it'll certainly make it easier for me to pay my mortgage on the BofE Tracker I've got booked for the end of the year

I'll still be a loser though, as we all will, when we have to bail out all those greedy 'savers' who stuck their money in Icesave i.e. off-shore and not helping the UK economy. If early reports are to be believed, they're going to waive the 50K limit for Icesave customers :mad: :mad:

Not really off shore tho was it. And the government were taking a nice slice of tax from the interest earned on £4.5billion

going2die_rich

hostman wrote: »

YAY - Punish savers by reducing rates, great idea

I have the same feeling...however the bigger picture is, it'll hopefuly get some stability in the market. After all, higher interest rates might be good for us savers, but if banks are going under, it's us taxpayers who end having to pay for it.

laineyc_2

We have a tracker so for us it is good news.

going2die_rich

leviathan wrote: »

Yep. Try all they can to keep the housing bubble going and make the over priced houses more attractive.

It'll certainly fool many of the sheep at the bottom of the ladder.

Nonesense. If they wanted to save the property market they'd have cut it more than that and got rid of a lot of the taxes involved.

This is more of a symbol to show all the governments are working together now to sort the credit market out. As half a percent isn't really going to change much, but it gives the stock market confidence that it is a international plan to sort it and not just everyone looking out for themselves.

Heyman_2

steadysaver wrote: »

Not really off shore tho was it. And the government were taking a nice slice of tax from the interest earned on £4.5billion

Well it's pretty off-shore now isn't it! And I doubt that the tax they got is going to be quite enough to cover that 4.5 billion you just mentioned.

dannyboycey

I'm sick of bailing other idiots out with my hard earned cash. Time to move abroad...

WTF?_2

Conrad wrote: »

I've put 3 offers on 3 repos this morning. All new build 2 bed flats for around £80k that sold for £180+ at peak to 'investors' that have thrown in the towell.
If I wait the EAs will find more investros flocking to thier doors, so be less inclined to recommend lower offers to the repossessing Banks.

Yield is about 7% and I do not think the prices can fall much further.

BTW - Im only going to buy one of them for now (I think)

As a very seasoned savvy investor said to me only yesterday - there comes a point where you have to grabb opportunitites as they arise and take a long term position.

Over on housepricecrash I kept argueing some time ago that the uber bears would not commit in the trough as they will be fearful things can only get worse. Many will want to see definite rises before they committ and even then some will claim its just a short term / spring bounce

Of course, things could get worse, hey ho

I think you're making a big mistake if you're jumping into the housing market now.

These measures are designed to stabilise a situation rapidly spiralling out of control - the disintegrating finance system. Best hope is that they put a floor under the market.

Don't count on them to generate a return to 'normality' or rather, the craziness of the last decade......

Banderman

Tragic news.They must want to inflate the house price bubble yet again. Will they ever learn?