Smile if you're an Abbey Flex Tracker

badboybill

Received a letter from Abbey today, stating that the Dec 4th 1% interest cut will take effect from the 3rd January 2009. This means I will get my .49% tracker reduced by £110 in February.

Jan 08 £890 to Jan 09 £384

More to come?:snow_grin

feisty1

badboybill wrote: »

Jan 08 £890 to Jan 09 £384

I hope you're keeping yr payments above the minimum so you wont feel the effect too much whan rates start moving again, oh & well done

mummytofour

OMFG! you lucky lucky luck person!

Gorgeous_George

I can't work out the numbers.

Interest only would look like £185K borrowed to make £384 at 2.49%. But that would only be £808 at 5.99%.

Still, a great reduction. It helps soften the damage done by falling house prices.

GG

badboybill

My guess is that it would take another 3 years before we see interest rates @4%. Why? if you believe the experts 2009 rates will be around 1.25/1.5%. Recovery not expected until 2010 and how often is the BOE going to raise the rates by more than 0.5% in 2010? twice if we're unlucky.

2009 = 1.5%
2010 = 2.5/2.75%
2011 = 3.5/4.5%

So by the end of 2009 I should have paid off my 5k CC's bill

mummytofour

I am glad you plan to re-direct the cash and not simply pay into the economy on consumer goods like somebody would like us to do!

Trillionaire

BadBoyBill I have an Abbey tracker mortgage as well:D (BBR+0.50%), but I've kept my payments the same as they were from August this year:beer:

Kez100

I've an Abbey Tracker at +0.69. I've put my payments up! I don't know when rates will rise but until they do I shall overpay as much as possible as we will be very exposed when then do.

I still spend as normal (mind you I am a miser so the high street boom never existed because of me) but I won;t be spending more. I don't need anything more. The only thing I need is my home paid for as fast as possible so I cannot be held to ransom by the 'can't organise a pi$$ up in a brewery' banks.

middo2905

I have an Abbey Tracker (-0.21 Base Rate) which runs out in July, although this is on a mortgage which is now about 95% LTV! So good news, bad news. I also have 6K on Credit Cards, which i can pay off £1K a month for 6 months thanks mortgage payments decreasing

Although I'm on a lovely rate now, I'm not going to gloat as i soon will be on a rate where i have no choice about it (95% = hands tied, so SVR).

Do people think it would be worth parking the credit card and getting the mortgage under 90%? Or paying off all my debts so when i do go to SVR i am better prepared for the uncertainty?

asandwhen

middo2905 wrote: »

I have an Abbey Tracker (-0.21 Base Rate) which runs out in July, although this is on a mortgage which is now about 95% LTV! So good news, bad news. I also have 6K on Credit Cards, which i can pay off £1K a month for 6 months thanks mortgage payments decreasing

Although I'm on a lovely rate now, I'm not going to gloat as i soon will be on a rate where i have no choice about it (95% = hands tied, so SVR).

Do people think it would be worth parking the credit card and getting the mortgage under 90%? Or paying off all my debts so when i do go to SVR i am better prepared for the uncertainty?

I would pay off the credit card and be prepaird to stay on the SVR for a bit. If you plow the extra onto your mortgage now then you may still be at 95% ltv due to decreasing house prices.

middo2905

That was my plan as it's paying off something that's definately going to make a difference and not just get swallowed up by decreasing property prices.