Base Rate Cut By 1.5%

RomysMum

I decided in July not to change my mortgage again until the fees changed as I totally disagree with them. So half of my mortgage is on the SVR!! Last month Halifax passed on the 0.5% decrease and I have my fingers crossed they do it again! Lloyds TSB have been reported to be passing on the full amount to SVR customers. My SVR will then be less than my fixed!!! Clever me.... for a change! Also I have predicted the last 4 interest rate changes apart from the size of the current one. I was expecting half percent again!! I am pleased!:j

payless

Those with existing trackers ( esp term deals ) will gain teh most. As stated , seems new deals will be re-priced with a higher margin , although the fixed willm likely fall a bit from current levels.

Savers rates ( esp existing producst) will also fall, although in fairness there's still likely to be good rates, as the pricing of both mortgage/ savings rates are more linked ( not contractually be pricing wise) to libor these days than base

Reds-on-Sea

Fantasic news for me I have HSBC Lifetime tracker (+0.68%) and my payment has fallen £165 today with immediate effect. Add that to the £55 last month, and it's going to make a real difference to my life thank you Mr King!

cattiea

Squish_21 wrote: »

Shocker!

My fixed rate finished in March so I will start hunting for a new deal in January!

At the mo I am thinking a tracker mortgage would be best!

C&G withdrew trackers this morning!!

poppy10_2

slystryd wrote: »

I'm worried.

I'm on a lifetime BoE base rate tracker with First Direct at only +0.34% (we were very lucky - 4 or 5 months ago).

This means our rate is now only 3.34%. Surely this means First Direct must now be making a loss?

Why are you worried? In every deal there is a winner and loser. You've won by being on a tracker linked to BOE base rate; but there may be some other sod who has lost out by taking out a fixed rate deal with FD last week at 6%+.

It all evens out in the end. FD will be fine, you don't have to worry about their balance sheet - your mortgage terms can't be changed and must be honoured, even if they go bust and are taken over by another company.

A base rate cut does not qualify as 'exceptional financial circumstances', it's all part of the game.

RomysMum

Mr King you are making a lot of people happy! If the cuts are passed on!

MikeyC123

Squish_21 wrote: »

Shocker!

My fixed rate finished in March so I will start hunting for a new deal in January!

At the mo I am thinking a tracker mortgage would be best!

I was thinking that too, but with such a cut if there are any fixed deals that will incorporate todays cut it will be where I am angling/ What's the lowest it can go.. zero and he highest - infinity.

Perhaps it nationwide keep their switch and fx products a tracker and then fix it if the rates drop again.

silvercar

bfgun wrote: »

Same here with Coventry Building Society.

Their motto "TLC not PLC"

Not on their Bank of England base rate trackers! I've had my letter for the last rate cut.:j

moneymare

According to SKY NEWS, Lloyds TSB have announced they will pass the cut on in full........others are 'reviewing the market'

alrg500

Anyone know if the Egg 0.75% tracker has a minimum level or will it drop to 3.75%?