BOE Rates hit 1.5%

speedbird1973

I'd suggest a 0.5% drop is about boosting sterling. Which you will benefit from. You need to think of the big picture. The economic policy wants you spending not saving. You're not being ignored at all savers, you're being encouraged into spending your savings to "boost" the econonmy.

I don't agree with it.. but a look at the big picture is required, and this month currency is the most important issue.

I suspect interest rates won't rise for at least 12 months and we'll see another 0.5% drop in the coming months.

Really2

speedbird1973 wrote: »

I'd suggest a 0.5% drop is about boosting sterling. Which you will benefit from. You need to think of the big picture. The economic policy wants you spending not saving. You're not being ignored at all savers, you're being encouraged into spending your savings to "boost" the econonmy.

I don't agree with it.. but a look at the big picture is required, and this month currency is the most important issue.

I suspect interest rates won't rise for at least 12 months and we'll see another 0.5% drop in the coming months.

Spot on exactly what I think but I think we could even see base at 0.5%.
I can't see base going over 2.5-3% in the next 2 years.

IveSeenTheLight

speedbird1973 wrote: »

I suspect interest rates won't rise for at least 12 months and we'll see another 0.5% drop in the coming months.

This would be perfect for me.
My mortgage deals are up for renewall at the end of the year, one fixed, one tracker.
I'll re-assess the figures then, but will probably be looking at getting a 5 year fix for both with a potential to pay them both off by then

Kez100

I am now paying £110 a month in interest. Opportunity alert : let's get that balance a fallin'

I might not be spending but I am helping liquidize the banks (and my don't they deserve it;).

Kez100

Old_Slaphead wrote: »

Hopefully not. It's about time this Gov't thought about savers.

They have. Won't be long and they'll be leading us into deflation.

Old_Slaphead

Kez100 wrote: »

They have. Won't be long and they'll be leading us into deflation.

:rotfl:

Followed by much higher inflation once they get the printing presses cranked up!

IveSeenTheLight

Kez100 wrote: »

I am now paying £110 a month in interest. Opportunity alert : let's get that balance a fallin'

I might not be spending but I am helping liquidize the banks (and my don't they deserve it;).

Very True and very wise.

I too massively overpay to reduce the balance. Your right it is an oppertunity for many.

chucky

chucky wrote:

and it's a beautiful graph too that is telling me that my mortgage interest is now £300 less!! :T
[/chucky]

I presume the £300 less is per month and refers to the 4.25% drop or is it per year and just the 0.5% drop?

the monthly mortgage will now be £300 less interest paid per month per 0.5% drop.

my residential mortgage is nearly 100% offset currently paying 2.4% - once i get to 100% decisions will have to be made

and you're right that it's a great opportunity for many people

edit - it's actually only £220, got my maths completely skewed

mr.broderick

Welshlassie wrote: »

They've been cut to 1.5 %
www.bbc.co.uk

Doubt it will mean much though!!

Yeah my fixed rate mortgage got even more expensive today, darn it.

carolt

chucky wrote: »

the monthly mortgage will now be £300 less interest paid per month per 0.5% drop.

my residential mortgage is nearly 100% offset currently paying 2.4% - once i get to 100% decisions will have to be made

and you're right that it's a great opportunity for many people

Wow, you must have a big mortgage.

Explains your fear and aggression when confronted with the fact that house prices are falling.

My mortgage costs aren't falling because I don't have one.

But the prices of houses I want to buy are falling at about £5000 a month.

Stick that in your pipe and smoke it.