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BoE cuts rates to 3.0%!!!

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Comments

  • formulaonefan
    formulaonefan Posts: 357 Forumite
    I want to see how much the banks pass on after yesterday's BOE rate cut.

    If the banks come out with something like this for FTB/New mortgage:

    BOE BR Tracker + 1.5% for 25% deposit (that's 4.5% interest)
    BOE BR Tracker + 2% for 15% deposit (that's 5% interest)
    BOE BR Tracker + 2.5% for 10% deposit (that's 5.5% interest)
    Fixed - 5.25% for 25% deposit
    Fixed - 5.50% for 15% deposit
    Fixed - 5.75% for 10% deposit

    then I would go for fixed because if the rate cut kicks start the market then BOE rate will go up as well. We don't seem to learn from past experience and I don't see how we would learn again.

    Now everything depends on how the banks react to this rate cut.
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    formulaonefan wrote: »
    I want to see how much the banks pass on after yesterday's BOE rate cut.

    If the banks come out with something like this for FTB/New mortgage:

    BOE BR Tracker + 1.5% for 25% deposit (that's 4.5% interest)
    BOE BR Tracker + 2% for 15% deposit (that's 5% interest)
    BOE BR Tracker + 2.5% for 10% deposit (that's 5.5% interest)
    Fixed - 5.25% for 25% deposit
    Fixed - 5.50% for 15% deposit
    Fixed - 5.75% for 10% deposit

    then I would go for fixed because if the rate cut kicks start the market then BOE rate will go up as well. We don't seem to learn from past experience and I don't see how we would learn again.

    Now everything depends on how the banks react to this rate cut.

    Based on three month LIBOR, 0.75% would seem reasonable.

    http://forums.moneysavingexpert.com/showthread.html?t=1270489
    --
    Every pound less borrowed (to buy a house) is more than two pounds less to repay and more than three pounds less to earn, over the course of a typical mortgage.
  • worldtraveller
    worldtraveller Posts: 14,013 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    LIBOR rate set at 4.49% today, down 107 points from 5.56%.
    There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...
  • formulaonefan
    formulaonefan Posts: 357 Forumite
    worldtraveller wrote: »
    LIBOR rate set at 4.49% today.

    What it used to be couple of months ago?
    how high has it gone during the credit crunch period?
    how low has it gone before?
  • worldtraveller
    worldtraveller Posts: 14,013 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    formulaonefan wrote: »
    What it used to be couple of months ago?
    how high has it gone during the credit crunch period?
    how low has it gone before?

    You can check historic rates at the BBA website HERE.
    There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...
  • IveSeenTheLight
    IveSeenTheLight Posts: 13,322 Forumite
    worldtraveller wrote: »
    LIBOR rate set at 4.49% today, down 107 points from 5.56%.

    Is this back to 2007 levels?
    Is this how the government plan to return to 2007 lending levels **NOTE** Lending levels, not criteria
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    worldtraveller wrote: »
    LIBOR rate set at 4.49% today, down 107 points from 5.56%.

    Back up link.
    http://markets.ft.com/ft/markets/reports/FTReport.asp?dockey=MNY-061108
  • worldtraveller
    worldtraveller Posts: 14,013 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    IveSeenTheLight wrote: »
    Is this back to 2007 levels?

    The GBP 3-month LIBOR rate on 7th November, 2007 was 6.27%.
    There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...
  • IveSeenTheLight
    IveSeenTheLight Posts: 13,322 Forumite
    worldtraveller wrote: »
    The GBP 3-month LIBOR rate on 7th November, 2007 was 6.27%.

    Thanks.
    What was it earlier in the year, say April?
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
  • IveSeenTheLight
    IveSeenTheLight Posts: 13,322 Forumite
    IveSeenTheLight wrote: »
    Thanks.
    What was it earlier in the year, say April?

    Ah, see how to get it now.
    The 3 month LIBOR on 10th April 2007 was 5.59%
    The 3 month LIBOR on 10th April 2006 was 5.04%
    The 3 month LIBOR on 11th April 2005 was 4.94%

    So in a rough check, it seems the LIBOR is the lowest its been for a few years
    :wall:
    What we've got here is....... failure to communicate.
    Some men you just can't reach.
    :wall:
This discussion has been closed.
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