BoE cuts rates to 3.0%!!!

mystic_trev

It should be remembered that 3% is the base for most Trackers,so any further falls won't benefit people who have them. The only exception (I believe) is Nationwide who's base is 2.5% Please feel free to correct me if this is wrong!

JayZed

SingleSue wrote: »

Ok, for the archivists amongst us....when was the last time interest rates were this low?

........ 1955 ........

formulaonefan

oh my! I'm shocked and surprised BOE cut the rates to 3%

Does this mean end of house price crash and kick start house price boom again?
Will we see 4% mortgages soon?
Does it mean we can have 4-4.5% mortgage fixed for 10 years?
Can BOE rate go any lower then this?

this is such a shock to the financial system. I think they are trying to end a recession and causing even bigger financial trouble.

ginvzt

Eurozone rates lowered to 3.25%

http://news.bbc.co.uk/1/hi/business/7712684.stm

chucky

what great news - that's nearly £700 saving on my residential offset that had less than 2 years to pay off.

this cut will help me pay off the remaining debt even quicker.

ctomo1978

i'm with northern rock, (which is goverment owned) when there was an emergency cut of 0.5%, they only passed on 0.15%, which is dreadful as Mr Brown keeps saying that he hopes the bank passes the savings onto the homeowners!!!!! but of a backwards comment, i just hope northern rock brings it into line. any help or info on this matter would be appriciated.
many thanks

WTF?_2

mr.broderick wrote: »

Unprecedented cuts. !!!!!! what is your advice to all the guys out there with savings to buy a house? I never saw this coming. Glad i removed all my savings a couple of months ago.

Tangible assets wouldn't be a bad idea at this stage - though I still wouldn't borrow to buy them until things are clearer.

This move is a sign of desperation by the BoE, they obviously know some very, very bad stuff is coming down the line.

Should also be interesting to see how bond buyers react - the government is planning to borrow, borrow, borrow their way out of this mess. To me, that says they will inflate. If the bond vigilantes agree then we might see the government issuing uncovered bonds to be 'bought' by the BoE triggering large scale or even possibly hyperinflation.

Really2

mystic_trev wrote: »

It should be remembered that 3% is the base for most Trackers,so any further falls won't benefit people who have them. The only exception (I believe) is Nationwide who's base is 2.5% Please feel free to correct me if this is wrong!

HSBC BOE base rate, no floor as I know.
Nation wide is their own base rate usualy not BOE, same for woolowich.

carolt

GDB2222 wrote: »

Sadly, that is a possibility. The fundamental over-pricing hasn't changed, but you see the posts here all the time: "mortgage would be less than rent, so must buy".

I might buy if the mortgage were to be less than my rent - and if I didn't belive house prices had further to fall - but I seriously doubt all these cuts will be passed on to new borowers - obviously very good news for those on existing trackers, but for everyone else, incl. FTB's, I'm very sceptical it will make much difference.

WTF?_2

ginvzt wrote: »

Eurozone rates lowered to 3.25%

http://news.bbc.co.uk/1/hi/business/7712684.stm

good spot - deserves a bump.