Gordon acts against savers again........

ed123_2

.....by calling in the bank/b.soc boss's and strong arming them into cutting mortgage rates and thus damaging savers interests.....(They have said they did'nt want to cut by the full amount to protect savers interests)...so there you have it Gordon could'nt give a XXXX for us savers....:mad:

blackswan2

As someone with lots of savings and no mortgage, I have to say that what the Government is doing is absolutely the right thing.

Sure we'd all like better rates of interests but but svaing and lending rates should be aligned to the BoE rate, as they almost always are.

Reaper

The banks are in a bit of a tight spot. They have been criticised for borrowing too much and have been trying to make themselves more solvent by lending less and attracting savers.

I think it is unreasonable of the government to force them to make themselves vulnerable again - stable banks are essential. Setting individual bank rates should be a business decision, not a political one.

Lynt_3

Maybe i'm being a bit thick here, but if your mortgage payments go down, therefore saving you money, but the savings rates go down, therefore earning you less, then they just cancel eachother out, and so you are where you were before; no worse/better off.

Did that make sense to anyone.
It did to me :rotfl:


I don't have a mortgage (at long last!) so feeling a bit p*ssed off with it all.
Have worked damned hard all my life, and always paid my way.

SGE1

Lynt wrote: »

Maybe i'm being a bit thick here, but if your mortgage payments go down, therefore saving you money, but the savings rates go down, therefore earning you less, then they just cancel eachother out, and so you are where you were before; no worse/better off.

Did that make sense to anyone.
It did to me :rotfl:


I don't have a mortgage (at long last!) so feeling a bit p*ssed off with it all.
Have worked damned hard all my life, and always paid my way.

Sorry but that makes no sense - that assumes that people have as large a pot of savings as they do mortgages. I'd like to meet that person!

Reaper

Lynt wrote: »

Maybe i'm being a bit thick here, but if your mortgage payments go down, therefore saving you money, but the savings rates go down, therefore earning you less, then they just cancel eachother out, and so you are where you were before; no worse/better off.

The theory is that if rates are low people won't bother saving the extra money they have from reduced debt payments. They will spend or invest instead which stimulates the economy.

Of course it doesn't work if people fear for the future (eg worried about being made redundant).

h5djr

SGE1 wrote: »

Sorry but that makes no sense - that assumes that people have as large a pot of savings as they do mortgages. I'd like to meet that person!

I now have far more money in savings that I've ever had as a mortgage. The current policies seem to be aimed at people who have large mortgages, large credit card bills etc. Those of us who have none of these are paying the price for those who have.

Idiophreak

h5djr wrote: »

I now have far more money in savings that I've ever had as a mortgage. The current policies seem to be aimed at people who have large mortgages, large credit card bills etc. Those of us who have none of these are paying the price for those who have.

Yeah, that's kinda how it works. I think the government's more interested in making sure people keep a roof over the head, some food on the table etc rather than ensuring the continued growth of people's savings.

Not saying that's right, but it's the way it seems to be.

Pssst

Reaper wrote: »

The theory is that if rates are low people won't bother saving the extra money they have from reduced debt payments. They will spend or invest instead which stimulates the economy.

Of course it doesn't work if people fear for the future (eg worried about being made redundant).

Thats not how it will work for me. I have no mortgage, I have pots of savings and the way it will work for me is that I'll keep switching to get the best saving/investment deals and if lending rates keep dropping,i'll borrow loads of money and buy stuff that i need,go on holiday or whatever.

Mikeyorks

Lynt wrote: »

Did that make sense to anyone.

I don't have a mortgage (at long last!)

No sense at all. When you had a Mortgage did you have lots of saving alongside? If so .... why.

As post #2 ..... I've got to the stage in my life when I only have Savings and no debts. But I consider, in the current macro financial climate, that what is being done is for the greater good and, hopefully, the shorter duration. So I'll put up with it ........ far more readily than I do the myopia of threads such as this one.

Lynt_3

SGE1 wrote: »

Sorry but that makes no sense - that assumes that people have as large a pot of savings as they do mortgages. I'd like to meet that person!

I didn't think anyone else would think it made sense :rotfl:

I may be going just slightly mad :eek: