Base Rate Cut By 1.5%

domcastro

Big interest cuts were done in USA - it had no effect. They were on about 2% when they did the 700bn bailout. They're now 1% and still no real economic improvement

sahj

how do you work out how much a saving you will make each month? Im with HSBC on their base rate +1% mortgage. Still not had the last 0.5% cut. My monthly payment at the minute (based on a 6% rate) is £815.

Maths never was my strong point......

Andy_Hamilton

BBC have a basic calculator for people to use http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

AHAR

sahj wrote: »

how do you work out how much a saving you will make each month? Im with HSBC on their base rate +1% mortgage. Still not had the last 0.5% cut. My monthly payment at the minute (based on a 6% rate) is £815.

Maths never was my strong point......

I think you'd need to google a mortgage calculator and punch in the new rate, current balance and remaining term to find out what the repayments will be.

This drop takes my Nationwide tracker to 3.44%. Woot!
Another 0.25% drop and it'll bottom-out though I think. But I knew that when I took out the deal.

Heyman_2

moneymare wrote: »

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

For 'reviewing the market', read 'packing their pants'

sahj

Andy_Hamilton wrote: »

BBC have a basic calculator for people to use http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

Wow! An approx saving of £130 a month! :j

Thank you for taking the time to find and add the calculator. :T

gsc

anyone heard if Scottish Widows will be reducing their rate?

My offset tracks "Scottish Widows Bank Base Rate" which "effective from 8th October 2008 is 4.50%" on their website at the moment.

moneymare

Heyman wrote: »

For 'reviewing the market', read 'packing their pants'

or 'shoite - hang on and lets see !!!!!! everyone else is doing??'

mr_mortgage

Locoblade wrote: »

Yup, everyone should be able to do this because nobody realistically expected such a drop

Don't mean to gloat, but I did. But I do work in the FS business, so it's been on my mind!

Heyman_2

moneymare wrote: »

or 'shoite - hang on and lets see !!!!!! everyone else is doing??'

Some combination of the two I would imagine

I can almost feel the banks' pain on this one Unfortunately, their pain is our pain :mad:

Will be VERY interesting to see the effect this has on the market. Abbey thought they'd be clever with their rates and hike them 0.5% prior to the cut - it is still a good move but I wonder if they'll have the balls to put tracker rates up there of around 2.5% above base...