BoE cuts rates to 3.0%!!!

sportbeth

hethmar wrote: »

Do you think mortgage rates will really show this drop?

Nationwide sent me a letter within a week of the last rate drop a couple of weeks back. Northern Rock used to wait a good 6 weeks to drop it (funnily enough when they were on the up they sent me a letter within a week!)

adr0ck

hethmar wrote: »

Im in a quandry here as one of my family are just about to sign up to a fix of 6% for 2 years - hmmmm.

please don't let them sign upto a 2 year deal

just means they have to find another mortgage in 2 years time with the extra costs and hassle involved

my own point of view is that we will have low interest rates for a couple of years followed by very high interest rates

therefore (if it was me) i would go for a tracker which enabled me to jump onto a fixed rate in a couple of years time with no penalty (for when rates zoom up again)

BiggaThanBen

FTSE is up, sterling is up against dollar .. shouldn't it be falling now ? :-/

sarah_elton

adr0ck wrote: »

just means they have to find another mortgage in 2 years time with the extra costs and hassle involved

Not true. After the fixed period, they'll just go onto their lender's SVR. It's entirely up to them whether they apply for a new mortgage or not.

Why do so many people on these forums think a two year fix means a two year mortgage contract that they HAVE to change at the end of the period? :mad:

However, I agree that the rate outlook is low over the next two years so a fix of 6% is quite pricey (assuming anyone drops their fixed rates after this).

Heyman_2

Wow, when I saw the thread title I thought it was a joke. :eek: Until I read it on the BBC News site!!!

Finally the BofE take some bold, decisive action. Whether it's the RIGHT thing to do is another matter - I think they've overcooked it, personally. Watch the panic now as the banks withdraw their present Tracker mortgage products at the speed of light. Will be interesting to see what this does to the SVR 'guarantees' (i.e. never more than 2% above the base rate) that some banks had in place :rolleyes:

Personally I'm looking forward to 3.79% on my new Tracker from January.

dora37

Could somebody clarify - these articles saying lenders are removing their tracker mortgages - is it only to new customers?

Presumably tracker mortgages to existing customers stay? and inturn their mortgages reduced?

Thanks in advance.

adr0ck

dora37 wrote: »

Could somebody clarify - these articles saying lenders are removing their tracker mortgages - is it only to new customers?

Presumably tracker mortgages to existing customers stay? and inturn their mortgages reduced?

Thanks in advance.

yes only to new customers

people on existing trackers rates will be reduced by the full 1.5% :beer:

neas

am glad my isa is in a fixed rate 6.15% isa at the mo and my savings are going into a regular saver 10% :P.

Shame the interest rate will be puny on exit :P... with inflation eroding my savings.... joy of joys.. all because bill and ben can pay 100 quid less mortgage a month.

*sigh*... robin hood syndrome... except the rich in this case are actually just the people 'still waiting' to become 'poor'. I doubt this will help the falling house prices tho thats woven into peoples heas now.. it might slow it a bit tho.. but the fall into negative equity will begin... altho such a fall will lower peoples payments.

So... we are a soceity in tons of debt how does reducing interest rates help? Sure if people worked to pay debt off faster it'd help right? But wont people just go ''oooohh cheaper debt.. time to get the cards out again its xmas time!!'...

My savings will be unaffected by this for approx 11 months (just fixed em etc).

poppy10_2

dora37 wrote: »

Could somebody clarify - these articles saying lenders are removing their tracker mortgages - is it only to new customers?

Presumably tracker mortgages to existing customers stay? and inturn their mortgages reduced?

Thanks in advance.

Yep, you got it.

kennyboy66_2

BiggaThanBen wrote: »

FTSE is up, sterling is up against dollar .. shouldn't it be falling now ? :-/

Its never quite as mechanical as rates down, sterling down.

Anyone who says the know where currencies are heading is usually a liar.

Its likely that we will see large currency volatility over the coming weeks and months.

I'm gob-smacked they cut buy so much in one go, although I have thought that rates would get to 3% for a while - I just thought it would take until March 09.

I think it should be good for business but does make me wonder how bad things really are.

ps I have a fixed rate mortgage and variable rate savings.