Interest Rates cut by 0.5%

Kez100

Can I say I am pleased the BTL rate went up. We don't need this funding to fund more b****y BTL. I want to see this help aid those in small business keep going and help keep jobs secure, for the homeowner to have a reduction in outgoings to help them deal with the higher costs they are facing in everyday life and for those in debt and facing it to stand a better chance of repaying it rather than throwing in the towel.

midflight

wait until you go for a re-mortgage and check the 'arrangement fee', which is of course is interest up front.

Exactly. Get a FANTASTIC deal every 2 years, but pay a high "arrangement fee/product fee/reservation fee/exit fee/whatever fee" and you end up being no better off if you'd just stuck on a tracker (or even SVR!) and paid zero fees...

A great deal with high fees is no better (and often worse) than a standard deal with low (or no) fees.

oilit

Kez100 wrote: »

Can I say I am pleased the BTL rate went up. We don't need this funding to fund more b****y BTL. I want to see this help aid those in small business keep going and help keep jobs secure, for the homeowner to have a reduction in outgoings to help them deal with the higher costs they are facing in everyday life and for those in debt and facing it to stand a better chance of repaying it rather than throwing in the towel.

couldnt agree more - BTL should be so high that cash only purchasers can buy, this would help to stop the boom bust cycle, and when your parting with a big chunk of your uearnt cash then you think twice versus betting with somebody elses money.

luckyfool

oilit wrote: »

Interesting language...

nevertheless, your point - hidden amongst the metaphors is a valid one - you can get base -.01% for a 2.5% fee (gulp - thats a 12.5k fee on 500k), but you can get trackers at reasonable rates for 499 and 999 fee - which in the scheme of things (depends of course on size of mortgage) may not be such a big thing?


My point was that the uniqueness of the situation is that teh deadline for acceptance had passed, yet they still werevery keen to sell it to me - im sure if interest rates had gone up they would be saying 'sorry paperwork lost - but tough luck'!

I'm confused by your point. If the deal they were going to allow you to have was a tracker, then the rate you pay would have tracked the falling Bank of England Base rate and also gone down by 0.5%. 1.1% above base rate means the same thing whether the base rate is 5% or 4.5%.

Your point is lost on me.

lisyloo

oilit wrote: »

May I ask who that is with?

So I am now able to shop around quickly to see what I can get elsewhere - I woudl only go for a tracker though...

I suspect the 4.19 is an existing deal as thre is nothing like that around now.

Have you tried first direct.
Their lowest if 4.99% tracker with £999 arrangement fee, but there are other options.
It's offset too.

Tettle

Lower interest rates, great. But just wait - we'll all be paying for this fiasco with more stealth taxes. Part of the reason people can't keep up their mortgage payments is because their disposable income has been eroded and the UK is an incredibly expensive place to live for even a moderate standard of living. You get taxed on your income, then when you try to spend it everything is more expensive to buy because the Government adds VAT on almost everything, then taxes you when you fly, taxes you for driving, takes away your MIRAS (mortgage interest relief - remember that?), your local council taxes you, then in London your get taxes again for driving into the City, then again for parking outside you own house 'Residents' parking permits' and in the form of parking tickets and clamping ... the list is frankly endless. Wait for the next lot of taxes, they are on there way to pay for all this mess.

oilit

luckyfool wrote: »

I'm confused by your point. If the deal they were going to allow you to have was a tracker, then the rate you pay would have tracked the falling Bank of England Base rate and also gone down by 0.5%. 1.1% above base rate means the same thing whether the base rate is 5% or 4.5%.

Your point is lost on me.

The point was:

• They had a rate
• I accepted it by signing and sending back
• They didnt get paperwork
• The rate has subsequently expired and been replaced by a higher tracker rate
• The offers are normally valid for 30 days
• 60 days later I called to track the .5% reduction they said I wasnt on the deal I had signed up for as they had not got the paperwork
• As the rates have moved (for the better as far as I can see) I now have the ability to go back and look around the market to see if I can get a better tracker rate
• My point was they were trying to tell me that the rate was still reserved against my mortagage even though by their rules it shoudl have expired
• I suspect the expired rate offered (ie BOE+x% would have been unavailable/they woudl have stick harder to their own rules had rates gone up yesterday - but as they had gone down the newer base +x% trackers are more aggresive today than yesterday they were still keen for me to verbally accept yesterday before any market adjustments came thru)

Hope this makes the point clearer - if not dont worry - I get it

Kezza25_2

any news on northern rock? i'm out of the country so it isn't easy for me to call them to see if they're passing the rate cut on.

Cheers

sodamhall1

Great news for customers on tracker rate products anyone on the SVR the rate you go to after your deal has expired say either a fixed, tracker or discounted will have to check if the lender is reducing these as they are not linked to the base rate. Also I cannot see fixed rates reducing in fact some are increasing due to libor and swap rates. Also current tracker rate deals that are on the market you may see changing with them tracking at a higher rate above the base rate or a increase in fee.
Also northern rock dont seem to be passing this on or after made up there mind yet.

jasmin10

Hmm confused... I have just renewed by tracker with Nationwide (starts 1st Nove) and I phoned them today to ask what my new monthly payments will be and the rate I will be paying with the interest rate cut. The woman said that Nationwide haven't decided if it's going to be passing this onto it's customer.... uh.... surely my tracker tracks the BOE rates.

Do you think that she just didn't have a clue what she was on about????