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Debate House Prices


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BoE cuts rates to 3.0%!!!

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Comments

  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    hethmar wrote: »
    Conrad/everyone - can someone explain to a thicko how this will affect things?

    Will people now rush out to buy houses?

    No I for one will use the £350 less I pay in interest each month and stick it in my offset. I am now paying off £600 per moth in capital on this news.

    I think most will pay down their mortgages as house prices have droped.:confused:
  • mr.broderick
    mr.broderick Posts: 3,778 Forumite
    1,000 Posts Combo Breaker
    !!!!!!? wrote: »
    Hooray - recession cancelled , boom restored :rolleyes:

    What will be the next move when this doesn't work.? Let me see ... MORE interest rate cuts.

    Unprecedented cuts. !!!!!! what is your advice to all the guys out there with savings to buy a house? I never saw this coming. Glad i removed all my savings a couple of months ago.
  • WTF?_2
    WTF?_2 Posts: 4,592 Forumite
    wolvoman wrote: »
    I see it as preserving jobs and helping people NOT to lose their homes through reposessions. That is well-being isn't it?

    Why would they lose their home through repossession then? I wouldn't be because they simply borrowed more than they could afford to repay would it?
    --
    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.
  • Jonbvn
    Jonbvn Posts: 5,562 Forumite
    Part of the Furniture 1,000 Posts
    hethmar wrote: »
    † If the Bank of England base rate is 2.75% or less during the tracker period, the rate you pay will track a rate of 2.75% until the base rate rises back above this. Following a change in the Bank of England base rate, our tracker rates will change on the first day of the next month.

    That is only true for Nationwide. Other lenders such as HSBC & Woolwich are are obliged to track without a collar.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • carolt
    carolt Posts: 8,531 Forumite
    hethmar wrote: »
    Conrad/everyone - can someone explain to a thicko how this will affect things?

    Will people now rush out to buy houses?

    Of course they will.

    Just like they did in America when they reduced rates down to nothing there. Or Japan.

    D'oh. ;)
  • GDB2222
    GDB2222 Posts: 26,568 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    hethmar wrote: »
    Will people now rush out to buy houses?

    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".
    No reliance should be placed on the above! Absolutely none, do you hear?
  • mr.broderick
    mr.broderick Posts: 3,778 Forumite
    1,000 Posts Combo Breaker
    m1ntie wrote: »
    Fixed rates obviously wont reduce.

    I know this, my rate ends in 13 months. Going to keep an eye on the rates early next year.
  • MissMoneypenny
    MissMoneypenny Posts: 5,324 Forumite
    neas wrote: »
    Also people with student loans.. will see their repayments at 3.8% ... while the max they can get from a bank is 3%..... so student loans that were 'free'.... are actually costing students ... lovely little island we got here :P.

    My son has his student loan money in an ISA, so he is making money on it at the moment. He is off to Australia within the month and they still have good savings rates there at the moment, so he may take the rest of his savings with him. xe showing exchange rate has dropped against the A$ today though.
    RENTING? Have you checked to see that your landlord has permission from their mortgage lender to rent the property? If not, you could be thrown out with very little notice.
    Read the sticky on the House Buying, Renting & Selling board.


  • mr.broderick
    mr.broderick Posts: 3,778 Forumite
    1,000 Posts Combo Breaker
    carolt wrote: »
    Of course they will.

    Just like they did in America when they reduced rates down to nothing there. Or Japan.

    D'oh. ;)

    Actually i think this will happen, sorry to disagree and all that.
  • julie2710
    julie2710 Posts: 1,381 Forumite
    Sorry if this is a daft question but how much of a difference in repayments would this make on a mortgage of 227,000?? Last cut everyone was saying it should of been about 100 per month but my bank only reduced my repayments by 40 per month?
    MBNA [STRIKE]£2,029[/STRIKE] £1,145 Virgin [STRIKE]£8,712[/STRIKE] £7,957 Sainsbury [STRIKE]£6,870[/STRIKE] £5,575 M&S [STRIKE]£10,016[/STRIKE] £9,690 Barclaycard [STRIKE]£11,951[/STRIKE] £11,628 CTC [STRIKE]£7,629[/STRIKE] £6,789 Mortgage £[STRIKE]182,828[/STRIKE] £171,670
    LBM Dec12 excl mort 47,207/42,784 Dec13
    Excl mortg and CTC 39,578/35,995 Dec13
    Incl mortg 230,035/214,454 Dec13
    Extra payment a week:this week £0 / YTD£1,457.55
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