Base Rate Cut By 1.5%

mr_mortgage

domcastro wrote: »

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

And what would the situation be if they hadn't made the cuts?

moneyonmind

I'm with Abbey - have a tracker 1% above base (been with them for a few years) they didn't pass on the last month's 1/2% - I'm hoping they will pass on this drop as they would soon put it up if it was gong the other way!!!

pfpf

moneyonmind wrote: »

I'm with Abbey - have a tracker 1% above base (been with them for a few years) they didn't pass on the last month's 1/2% - I'm hoping they will pass on this drop as they would soon put it up if it was gong the other way!!!

why not? do you mean they didnt pass it on on day 1 or not at all? what reason do they have to not pass it on?

http://www.guardian.co.uk/money/2008/nov/01/mortgages-property

But it is better luck if you're with Abbey, RBS or Woolwich. They all said this week that their tracker rates would go as low as the BoE base rates dared

ajaxgeezer

This is great.

I can't believe I'm paying 1% less for my BTL (BBR+1.99) mortgage than I am for my fixed-rate residential lol.

Something's wrong somewhere

owitemisermusa

Good news for people on trackers, Aaaaaaaaaaaaaaaaarrrgggggggggghhhhhhhhhhhhhhhh! I now wish I tracked!!!!

mr_mortgage

moneyonmind wrote: »

I'm with Abbey - have a tracker 1% above base (been with them for a few years) they didn't pass on the last month's 1/2% - I'm hoping they will pass on this drop as they would soon put it up if it was gong the other way!!!

Are you certain it's a tracker? Perhaps it is an SVR which was 1% over the base rate? Check your documentation!

jimbo_the_jetset

For those who are making ~£100 + saving it may be worth considering keeping the payment above the minimum and trying to reduce capital while the going is good if you can afford it

matth36

what affect will the interest rate decrease have on the euro exchange rate...is now a good time to buy euros for jan trip to prague:j

Jimbo65

Surely Egg have to pass on this time. March they passed on .15% of .25% cut, then hiked it back again a few weeks later. Last months .5% was not passed on at all........the only lever is that if one does and others don't then there is clearly not enough competition in the market, calling into question Lloyds take over of RSB/HBoS? Market forces until now have always seen svr rates fall in line with any reductions, so what's going wrong in the market, because it clearly isn't working for those of us stuck with flippin' Egg.

ajaxgeezer

Matt: You'd have to imagine the pound would weaken significantly