BoE cuts rates to 3.0%!!!

StevieJ

chucky wrote: »

with the rate cut - returns on equities are going to look very attractive...

Wow Chucky what a double post.

Jonbvn

Really2 wrote: »

Hi Carol I heared the last cut 2.5 million ish on tracker rates.
Add to that 12% more applications for them last month alone.

According to the Torygraph there a 4 million tracker mortgages. Not sure what % of total this represents.

BiggaThanBen

Jonbvn wrote: »

According to the Torygraph there a 4 million tracker mortgages. Not sure what % of total this represents.

50% fixed
40% tracker
10% variable

read it somewhere today ..

Really2

Jonbvn wrote: »

According to the Torygraph there a 4 million tracker mortgages. Not sure what % of total this represents.

The 2.5 million must be BOE trackers then.(good news for them all)
11.5M total mortgage market
So 34% of all mortgages.

WTF?_2

StevieJ wrote: »

Better put it in the stock market a get those tax free dividends.

I'm not into speculation and I'm not convinced that the market has turned bull again so no quick decisions.

I'll wait a month and see how things play out before deciding if it makes sense to keep playing the waiting game with my cash or to move it into something, such as property.

I have however decided that if savings rates go down below 2% I will take all of my sterling savings out as physical cash and stuff them into a safety deposit box rather than let some bank make money off their back and pay me next to no interest......

kennyboy66_2

purch wrote: »

No

They are based on 30 year Gilt Yields.

It will be a shock to me if Gilt Yields don't rise dramatically over the coming months

I'd prepare yourself for a shock then. Annuity rates are at a 6 year high.

I'd put money on bond rates and hence annuities falling in the short term.

I can understand that 12/18 months down the line bond rates will probably start going up.

Jonbvn

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!

Sorry but this is not correct.

Tracker mtgs with Woolwich, HSBC & FD have no such collar/floor. Judging by this wesbite, a lot of people have trackers with HSBC.

kennyboy66_2

!!!!!!? wrote: »

I have however decided that if savings rates go down below 2% I will take all of my sterling savings out as physical cash and stuff them into a safety deposit box rather than let some bank make money off their back and pay me next to no interest......

Cutting your nose to spite your face comes to mind.
Would you really do this ?

carolt

As no-one bothered to answer me question, I've done it meself, sort of.

http://news.bbc.co.uk/1/hi/business/7711689.stm

Graph shows 51% of mortgage holders are on fixed rate, so the rate cut won't affect them, just under 10% on SVR and the remaining 40% on "tacker/discounted variable".

Of course it's not clear how many are on trackers and how many on discounted variable rates - the former will clearly benefit, the latter might not?

Really2

carolt wrote: »

As no-one bothered to answer me question, I've done it meself, sort of.

http://news.bbc.co.uk/1/hi/business/7711689.stm

Graph shows 51% of mortgage holders are on fixed rate, so the rate cut won't affect them, just under 10% on SVR and the remaining 40% on "tacker/discounted variable".

Of course it's not clear how many are on trackers and how many on discounted variable rates - the former will clearly benefit, the latter might not?

Carrol lots of us did.
I remember the last cut as I was off ill and they said 2.5M would see the full cut on trackers so I presume 2.5 Million are BOE trackers.