BoE cuts rates to 3.0%!!!

Running_Horse

ad44downey wrote: »

Are you so self-centred that you only see this major issue in terms of how it affects your own wallet in the short term? Have you no consideration of the long-term well-being of our nation?

Yes. That's why we pay high taxes. After that it's everyone for themselves.

ginvzt

I think what we all forget is that banks don't borrow money for the mortgages from BoE at the interest rate announced, but actually borrow from each other at LIBOR rae, which is considerably higher than 3%...

Really2

carolt wrote: »

I might buy if the mortgage were to be less than my rent - 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.

Your right Carol you would still stugle to get a new mortgage less than 4.5% unless you have 25% deposit.

andys15

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".

that is the bottom line. it might now worry people into buying now.


what percentage of people do you think would buy now if they could buy, as opposed to the ones who are putting off buying as they feel house have further to drop[but they could buy the house they want now]

MissMoneypenny

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".

Rents are dropping round here, just outside zone 6. LAs were asking £775pm for 2 ups 2 downs last summer (don't know if they got it) but now some LA are asking £600 for the same type of properties, in the same area. It will be intersting to see if those LLs not using LAs, will be dropping below that.

I still think that when the market bottoms out, the banks will start to give 100% mortgages again.

WTF?_2

carolt wrote: »

I might buy if the mortgage were to be less than my rent - 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.

I'd expect 0.75% at least to be passed on, which is considerable.

Pensioners on Jermemy Vine show spitting blood. Still, those trusting fools lived prudently and saved all their lives so should be expected to take the pain of the cretins who overborrowed.....

Something that the 'cut brigade' are missing in their euphoria is that fact that high central bank IRs weren't the problem - the problem was lack of liquidity making real world credit unavailable for many and expensive for many others.

This won't fix that - the other shoe will be massive government borrowing for giveaways and bailouts, possibly done with uncovered bond issues. That's when it will get really nasty.

Really2

MissMoneypenny wrote: »

Rents are dropping round here Mr B. LAs were asking £775pm for 2 ups 2 downs last summer (don't know if they got it) but now some LA are asking £600 for the same type of properties, in the same area. It will be intersting to see if those LLs not using LAs, will be dropping below that.

I still think that when the market bottoms out, the banks will start to give 100% mortgages again.

Well thay may be able to afford to on todays news.

ginvzt

!!!!!!? wrote: »

good spot - deserves a bump.

Oh, one more:
And:
The Swiss National Bank cut interest rates for the second time within a month by 0.5%
http://www.reuters.com/article/economicNews/idUSL66576020081106

Moon_Boi

ginvzt wrote: »

Here we go, a shocker, a huge slash in the rates down to 3.0%!!!!!

Sounds OK, should help boost retail spending in time for xmas.

chewmylegoff

a lot of the newer trackers aren't linked to the base rate at all, but to something called "bank rate", which isn't LIBOR, but just whatever rate the bank decides to set as far as i can see.

the economy will continue to shrink, all the firms that are going to go bust will still go bust, because the banks are not going to either (1) reduce their interest rates much and (2) lend any more money than they are currently doing. it doesn't matter if the interest rate is 0% or 100%. if you can't refinance, you can't refinance.