INTEREST RATES down to 1%???????

Kez100

What about an interest rate of -1%. Grab a fixed rate of minus 0.5% - that would get the economy going! Well, part of it anyway.....

Cut out the middle man and Pastures could just give me some of her savings!

I suspect most products and savings hopefully would be low but still potter about in the 3-4% (2-3% savings) although a few will with the BOE base rate attachment. I have Abbey Base Rate so, I fully expect, there is a floor there somewhere.

CFC

Mortage rates and loan costs will stay high. It will just allow the banks to make higher profits in order to stabilise them financially.

The public always pays for big companies' mistakes- both directly and indirectly.

Kez100

I wonder if private mortgages may make a return, especially when house prices bottom out? I recall those were common when I was younger.

MarkWatson

Just seen this thread after posting the same question elsewhere, so apologies for pearoast but does anyone know if the Woolwich have a floor for their BTL tracker interest rates?

I have a tracker at 0.49% above the BBBR but now there is some suggestion that if the B of E Bank rate (and the BBBR) goes below a certain level some lenders have imposed a floor, lower than which their rate will not fall (some say around 3%). I can't find my detailed T&Cs - does anyone know if there is a floor for Woolwich BTL Tracker rate mortgages?

Ta

james3333

so, back to my original question, how low can we expect mortgage deals to go if this happens? could we see 4% fixed deals for example?....

LittleMissAspie

I'd imagine that if rates went low like that, product fees would increase so the banks still make a good profit?

nv200

Yes..I believe FD trackers do have a ceiling...don't quote me on this but I believe its either 2.5 or 2.75%, so here is hoping!

hethmar

Not an expert, but somehow I cant see the Banks/Bs passing on cuts - basically cos they need money themselves.

Addiscomber

udydudy wrote: »

How I wish the BoE goes to 0.25% then I would pay virtually nothing as my mortgage tracks BoE BR less 0.21% which would mean i pay 0.04% and my savings would earn 6.1% tax free(fixed ISAs)

You need to engage more brain cells here. Where is money coming from to pay 6.1% on your savings if you expect banks or building societies to be lending at 0.04%? Or even at 2 or 3 %? Lenders have to lend at more than they borrow at to cover their costs and make profits. Given the way they have collectively shot themselves in the feet, there is no way that this can or will change.

Vertigo1

Well my fixed term with Britannia ends at the start of next year and I'm in a total quandry about what to do. Got a consult booked with them for tomorrow to discuss what they can offer me but really don't know which way to jump right now - another fixed term (if so, how long), a tracker or even sit at variable base for a little while to see what happens with interest rates over the following few months?