Interest Rates

aardvaak

I have just been looking over on the House Buying & Mortgages threads and there are the usual bunch of sados calling for a cut in rates.

Don't they know how offensive it is to me and I suspect most on this thread that is and will only go and reduce our living conditions still further!

My only form of income is from tracker savings a every cut counts to me - borrowers have other incomes.

Borrowers are just a bunch of selfish g*ts.

itsnever2lateisit?

Normally I would agree that BoE rate should fall, but this time it is a lose/lose for borrowers and savers.

Borrowers will not get much of the benefit of any cut (if at all)
Savers will 'enjoy' a reduction on their returns upwards of 110% of the BoE cut:mad:

IMHO if banks don't play ball the Govt should withdraw OUR £200bn and let another 1 or 2 fail, perhaps then the fat cats will get the message

Stormy

Even though I have savings, I also have a large mortgage so for me rate cuts are welcome. Especially because I have a tracker mortgage.

So in my personal circumstance my mortgage is bigger than my savings, so lower tracker coupled with overpayments will save me money.

Sorry to the OP for your feelings, but everyone has different circumstances in life and whats good for one, wont be good for another I suppose.

ballyblack

I have savings, I also have a large mortgage

So you are borrowing your own money

Hungerdunger

aardvaak wrote: »

My only form of income is from tracker savings

Did you not consider putting some of those savings into fixed rate accounts? I'm not sure what current rates are, but if you'd done that a couple of weeks ago when it was becoming obvious that BoE would be reducing the rate, you could have easily got between 6% and 7% which would have protected you for a year or two.

Having said that, I'm now relying on savings too, and am not happy about the likely situation when one of my fixed rate accounts matures next June. I guess we have to be sanguine about it - we've had a couple of good years with rates well ahead of inflation (well the official rate anyway), so maybe we've just got to put up with a few years of poor rates.

aardvaak

Hungerdunger wrote: »

Did you not consider putting some of those savings into fixed rate accounts? I'm not sure what current rates are, but if you'd done that a couple of weeks ago when it was becoming obvious that BoE would be reducing the rate, you could have easily got between 6% and 7% which would have protected you for a year or two.

Having said that, I'm now relying on savings too, and am not happy about the likely situation when one of my fixed rate accounts matures next June. I guess we have to be sanguine about it - we've had a couple of good years with rates well ahead of inflation (well the official rate anyway), so maybe we've just got to put up with a few years of poor rates.

No I have to have a monthly income to survive and the ones I looked at all wanted to pay once a year.

isofa

aardvaak wrote: »

No I have to have a monthly income to survive and the ones I looked at all wanted to pay once a year.

There are quite a few that offer either monthly, or quarterly interest payments, but some are restricted to saving a large amount.

You could try BM fixed rate accounts, you can opt to have monthly interest, but it doesn't say whether this can be paid out to an external account (but often BM insist with many accounts, so worth asking first).

Just one that appeared on a search is Ruffler's bond:

Interest will be credited on 31st March, 30th June, 30th September and 31st December and on maturity. Fixed Rate Bonds of £50,000 or more may have interest paid gross providing the interest is paid to the depositor and not credited to the account.

Pollycat

Borrowers are just a bunch of selfish g*ts.

I guess anybody from the House Buying & Mortgages forum could be saying exactly the same thing about you.

Unfortunately, when interest rates go up or down. there's always winners and losers.
For every increase, it's a 'Yippee' for me and my Mum & Dad as we have savings but no mortgages.
However, for my sister who has a not-so-small mortgage, every rise is a big worry.
And, of course, vice versa.
In the current financial climate, my parents are (like you) concerned that their income from savings will not cover their outgoings.

Don't they know how offensive it is to me and I suspect most on this thread that is and will only go and reduce our living conditions still further!

Did YOU know how offensive it was to them when you were benefitting from high interest rates and they were maybe wondering whether they could afford their mortgage payments?

itsnever2lateisit?

1.5% reduction!!!!!!!!!!!!!!!!!!!!!!!!
Guess they dont want folk to save

MORPH3US

1.5% reduction.... wow!

Stavros_3

Cut by 1.5 % Jesus Christ