Nationwide: No More Rate Cuts

chucky

mrcow wrote: »

Why should they?

If you don't like the terms of an agreement - don't sign it in the first place. There are plenty of lenders who don't impose such collars.

PS. "Hard working families" - have you been listening to too much government spin lately?!

yes but these people want everything and they want it now

Cat695

MiserlyMartin wrote: »

Yes and rates may well rise a lot in a few years despite what the BoE say. Since when have any of their inflation forecasts been accurate? We do have inflationary pressures especially with the sinking pound and rates this low. If that happens they will have to raise rates again. It may be that a load of people go and get 'bargain houses' at 120K and then get stuffed when rates go back to 7% or more. 2% to 7% ouch!

Hence why I will be fixing for as long as possible and overpay as much as I can.....

MiserlyMartin

Good plan Cat

drbeat

Gorgeous_George wrote: »

Forget savers for a moment, what about the taxpayer. Without taxpayers' cash there'd be no savings left.

The tax payer is yet to contribute to paying off this mess! It'll be the next generation - not Star Trek - that'll be paying up for the actions of the "I must get on the property ladder no matter what" brigade!

WTF?_2

MiserlyMartin wrote: »

Yes and rates may well rise a lot in a few years despite what the BoE say. Since when have any of their inflation forecasts been accurate? We do have inflationary pressures especially with the sinking pound and rates this low. If that happens they will have to raise rates again. It may be that a load of people go and get 'bargain houses' at 120K and then get stuffed when rates go back to 7% or more. 2% to 7% ouch!

That's when buying for cash or with a small, sensible mortgage really shows it's worth. That isn't an option right now for many though.

Don't forget though that real inflation helps erode capital debt so if you are canny it can be an opportunity as well as a potential trap.

Of course, this all depends on 'wage inflation' happening. If we just get 'price inflation' then it doesn't do those with debt any good at all, in fact it makes things worse.

ad44downey

amcluesent wrote: »

Nationwide Building Society will not pass on any further interest rate cuts to the majority of its tracker mortgage customers.

The lender plans to invoke a clause in the deals enabling it to stop reducing the loans in line with cuts to the Bank of England base rate once official interest rates fall below 2%.

They should be MADE to pass on the rate cuts to hard-working families.

Nonsense. They are free to do as they wish as they never received any government cash. Also there's 10 times as many savers as borrowers. All this reduction in interest rates is utter folly anyway, that's what started all the trouble in the first place

alared

drbeat wrote: »

I think you'll find that it doesn't quite work that way - it's all based on debt. Creating money from nothing, selling the debt to some chinease investor and then collecting the interest.

Yes and this is exactly why we`re in the mess we`re in.

In the old days you went to your local building society for a mortgage,which was provided by the savings in the BS.
The BS checked your income by you providing payslips etc.
Then if they were satified they would give you a mortgage offer of up to TWO and a HALF TIMES your yearly income.

That`s how it worked until GREED set in and all debts were rolled up and sold on to every Tom,!!!!!! and Harry,who didn`t actually understand the debt they were buying,all based on the over inflated value of property.

Running_Horse

ringo_24601 wrote: »

Your tracker has always had a collar. it was part of the contract. deal with it

Exactly.

I knew the terms and conditions when signing up for my Nationwide tracker. Although it would have been impossible to predict rates would fall so suddenly causing the collar to be reached, equally it would also have been impossible to predict rates would fall so suddenly saving me £175 pcm.

I have done very nicely out of the Nationwide being a sensibly run financial institution, and while I would not turn down any further reductions, making companies do things they don't want to do is the surest way to making a loss and having to go cap in hand to Gordon Brown (shudder).

The people to feel really sorry for are those like my workmate who lives frugally with his family to save up, and has seen returns on his savings slashed, because people with mortgages like me are considered more important.

drbeat

alared wrote: »

Yes and this is exactly why we`re in the mess we`re in.

In the old days you went to your local building society for a mortgage,which was provided by the savings in the BS.
The BS checked your income by you providing payslips etc.
Then if they were satified they would give you a mortgage offer of up to TWO and a HALF TIMES your yearly income.

That`s how it worked until GREED set in and all debts were rolled up and sold on to every Tom,!!!!!! and Harry,who didn`t actually understand the debt they were buying,all based on the over inflated value of property.

Sorry, I mis-read your initial post. But yeah, you basically hit the nail on the head there!

Kez100

Absolutely. Savers need to be considered and Nationwide have always been one to look at the whole picture. They went that extra mile for the trackers - dropping when they didn't have to. Now listen to the savers as well. Well done them, I say.