BoE cuts rates to 3.0%!!!

MissMoneypenny

StevieJ wrote: »

She can still take it at 55 but she will be deducted say 5% for each year below 60 or 65 depends on the new arrangement.

I'll look though all my papers from HSBC when I get home. When I phoned them I got an automated choice between pensions started before 1996(? - 90s something) and before.

Thanks Realy, I wouldn't have even thought to check when I could claim if it hadn't had been for your comments today, although I don't think you intended to help me.:T

HelpWhereIcan

On the reduction of BBR:

As of 5 pm there are virtually no Tracker products available and the following email I received from Bank of Scotland at 5:32 is a good illustration of what lenders are doing at the moment

KEY PRODUCT CHANGES WITH EFFECT FROM 7th NOVEMBER

Even ahead of today's 1.50% decrease in the Bank of England base rate, competitors were making significant changes to their tracker ranges. To ensure we continue to write a proportionate amount of new business we will be removing our trackers at close of business this evening. Our fixed rates remain unchanged and we will review our trackers next week.

In my humble opinion this is why the latest cut is potentially very bad news for anyone looking for a mortgage in the short term (next 6 months?).

The only products available at the moment being fixed rates means that lenders are able to increase their margins and build in a further profit if BBR drops further.

(Of course it is not that simple and LIBOR is the real figure but 3 mth LIBOR should drop over the next couple of weeks IMHO - how much by is another matter)

By not offering further trackers and possibly taking advantage of lower swap rates to introduce some lower fixed rates that act as good short term PR, lenders will be able to force borrowers to accept whatever rate they choose while trying to slime their way to avoiding calls to pass on cuts on a technicality.

How long before the cry is to re-introduce Trackers and Discounts rather than pass on cuts?

Lenders make the reasonable point that their rates are more closely aligned to LIBOR and that they have to allow for the increased risk of falling house values and increased unemployment/arrears brought about by the recession.

However, the BoE may have fallen into lenders' hands by allowing them to take advantage of the cut to withdraw trackers by stealth and reduce customer choice even further by offering mainly fixed rates (are we to see the return of the Cap & Collar mortgage?).

With regards to the collars on existing Trackers - it will all depend on when you took it out and you should look at your mortgage offer. At one time or another all lenders introduced collars and took them out. I am with Abbey and looking forward to 3.49% from next month on a lifetime tracker with no collar.

Some of my customers will be very happy with all the lifetime trackers I did last year.

Next step - HSBC and Barclays etc remove the link between BBR and their own base.

StevieJ

HelpWhereIcan wrote: »

On the reduction of BBR:

As of 5 pm there are virtually no Tracker products available and the following email I received from Bank of Scotland at 5:32 is a good illustration of what lenders are doing at the moment



In my humble opinion this is why the latest cut is potentially very bad news for anyone looking for a mortgage in the short term (next 6 months?).

The only products available at the moment being fixed rates means that lenders are able to increase their margins and build in a further profit if BBR drops further.

(Of course it is not that simple and LIBOR is the real figure but 3 mth LIBOR should drop over the next couple of weeks IMHO - how much by is another matter)

By not offering further trackers and possibly taking advantage of lower swap rates to introduce some lower fixed rates that act as good short term PR, lenders will be able to force borrowers to accept whatever rate they choose while trying to slime their way to avoiding calls to pass on cuts on a technicality.

How long before the cry is to re-introduce Trackers and Discounts rather than pass on cuts?

Lenders make the reasonable point that their rates are more closely aligned to LIBOR and that they have to allow for the increased risk of falling house values and increased unemployment/arrears brought about by the recession.

However, the BoE may have fallen into lenders' hands by allowing them to take advantage of the cut to withdraw trackers by stealth and reduce customer choice even further by offering mainly fixed rates (are we to see the return of the Cap & Collar mortgage?).

With regards to the collars on existing Trackers - it will all depend on when you took it out and you should look at your mortgage offer. At one time or another all lenders introduced collars and took them out. I am with Abbey and looking forward to 3.49% from next month on a lifetime tracker with no collar.

Some of my customers will be very happy with all the lifetime trackers I did last year.

Next step - HSBC and Barclays etc remove the link between BBR and their own base.

!!!!!!, take note.

Generali

Jonbvn wrote: »

Can't believe a 1.5% cut was already priced in?

The Swiss and the ECB cut at the same time and you aren't going to look to the US, Japan or gold to get an income so where else are you going to put your cash? The pound can't just drop it needs to drop relative to something else.

PasturesNew

Generali wrote: »

The Swiss and the ECB cut at the same time and you aren't going to look to the US, Japan or gold to get an income so where else are you going to put your cash? The pound can't just drop it needs to drop relative to something else.

You should go and bump your "leaving do" thread, find out if you'll be sat there like a Billy No Mates or not.



That'd be sad. It's too far for me really, but good luck!

setmefree2

HelpWhereIcan wrote: »

Next step - HSBC and Barclays etc remove the link between BBR and their own base.

thanks to MSE user Foreversummer who posted this link on another thread.

http://www.guardian.co.uk/money/2008...gages-property

Woolwich Mortgage holders (Tracker) along with RBS and Abbey, are in a good position according to the article.

Quote:
But it is better luck if you're with Abbey, RBS or Woolwich. They all said this week that their tracker rates would go as low as the BoE base rates dared

HelpWhereIcan

setmefree2 wrote: »

thanks to MSE user Foreversummer who posted this link on another thread.

http://www.guardian.co.uk/money/2008...gages-property

Woolwich Mortgage holders (Tracker) along with RBS and Abbey, are in a good position according to the article.

Quote:
But it is better luck if you're with Abbey, RBS or Woolwich. They all said this week that their tracker rates would go as low as the BoE base rates dared

I genuinely thanked your post but just for clarity's sake...

Woolwich Trackers tracks the Barclays Bank Base Rate.

As has been discussed on this forum before, this has traditionally been linked to BBR but it has to be accepted that Barclays (who are reportedly paying as much as 14% to their Middle East Investors for their cash) may be [strike]tempted[/strike] forced to remove that link.

HSBC have always followed BBR but they too could sever the link as a commercial decision.

Just look up the thread on here with posts from 'Virgin' One Account customers who believed they had a pledge in writing to follow BBR only to see their rate (With RBS) go up when BBR came down by 0.5%.

Check your own mortgage offer - that's the only way to be sure. Most Abbey customers should be laughing though.

Realy

StevieJ wrote: »

She can still take it at 55 but she will be deducted say 5% for each year below 60 or 65 depends on the new arrangement.

But how do you get a final salery if you don't work for them,?

Realy

MissMoneypenny wrote: »

I'll look though all my papers from HSBC when I get home. When I phoned them I got an automated choice between pensions started before 1996(? - 90s something) and before.

Thanks Realy, I wouldn't have even thought to check when I could claim if it hadn't had been for your comments today, although I don't think you intended to help me.:T

No I did at first,

But its gone from speaking direct to your personel too you used to work for them to automated responses.
If I was you I would take it out and that is trying to be helpfull!
but your changing of events does make me think otherwise.

setmefree2

HelpWhereIcan wrote: »

I genuinely thanked your post but just for clarity's sake...

Woolwich Trackers tracks the Barclays Bank Base Rate.

As has been discussed on this forum before, this has traditionally been linked to BBR but it has to be accepted that Barclays (who are reportedly paying as much as 14% to their Middle East Investors for their cash) may be [strike]tempted[/strike] forced to remove that link.

HSBC have always followed BBR but they too could sever the link as a commercial decision.

Just look up the thread on here with posts from 'Virgin' One Account customers who believed they had a pledge in writing to follow BBR only to see their rate (With RBS) go up when BBR came down by 0.5%.

Check your own mortgage offer - that's the only way to be sure. Most Abbey customers should be laughing though.

TBH I don't know why Woolwich/Barclays would be bothered what interest rate I pay. It was pre credit crunch so presumably my mortgage has been packaged up and sold on long ago and is some sort of MBS bought by someone in the shadow banking world?