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

JayZed

It really depends on your own personal circumstances and tolerance for risk, Vertigo. If I were remortgaging now I'd probably bet on rates going down and get a tracker, but I'm in a position where I'd be okay if rates jumped by a couple of percentage points (I'd just have to reduce my overpayments).

lisyloo

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!

Hi Nv200,

Do you (or anyone else) have any evidence of this?
A celing sound weird, as that sounds like a max limit and not a min (floor or collar).

I can't find anything in my Ts&Cs but would appreciate any confirmation.

I haven't foudn anythign to support what you've said (assuming you mena First Direct and you are talking about a "collar" i.e. min rate).

udydudy

Addiscomber wrote: »

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.

Do you realise how many people with mortgages really go for tracker?? and also how many have fixed their mortgages at high rates?? I know quite a few myself.. who have fixed their mortgages for the sake of knowing exactly how much their outgoing is every month. one friend is on 5.89% fixed for 3 years with a £495 fee!! another one over 6% and also added fees make the cost even higher.

Places from where they make money to pay my 6.1%
1) Mortgages on SVR(which they do not lower with BoE)
2) Current Accounts paying 0.1%
3) High mortgage arrangement fees
4) Fixed rate Mortgages at high rates.
5) Credit cards balances with interest rates at 16%(in many cases 24% or higher)

if anyone wants me to feel sorry for the banks, sorry I do not and never will. Having been in investment management, i know the banks make money no matter what. its just when banks overdo the risks that they collapse since they cannot refinance their short term lending.

Why else do you think preference shares paying 12% were issued to the government. simply because the banks make money and are still making money. the problem is that they are not being able to access funds to keep their business of lending going. ofcourse they are taking a hit on bad debt and downward revaluing of assets held. but as long as they stay up and running in a few years they will be revaluing these assets upwards with this adding to the profits. its not as simple as that though.