B of E Base Rate: 5th February 2009

space_rider

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Gorgeous_George wrote: »

So, have you kept the payments the same OR do you save the difference at 5%?

I think they'll hold.

GG

I actually budgeted to pay 7.09% when my deal ran out in December so I am paying Abbey 6.04 and saving the difference between 7.09 and 6.04 each month in an account that will pay 5%. They actually reduced my payments this month to 4.04 even though I asked them to leave it the same. Can`t be bothered to ring them again so just adjusted the standing order accordingly. Probably a better option as company I work for is a bit iffy at the moment profit wise and we are on quarterly review. If we aren`t making enough money they`ll pull the plug.

Pobby

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All I can say is, with all my years on this planet I cannot understand how such a huge, total mess has been allowed to happen. Chit, have tried to save for retirement and now that`s getting screwed over. Bollox to the lot of them!

[Deleted User]

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i`ll go for a cut of 0.75% and bet its not the final cut

brummybloke

i doubt there will be any rise in interest rates until after the next election, then however i think it may have to go up a large amount quite quickly as the next government will have nothing to lose by raising them immediately after the elections, they can reduce them for the final year before the next election again.

[Deleted User]

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brummybloke wrote: »

i doubt there will be any rise in interest rates until after the next election, then however i think it may have to go up a large amount quite quickly as the next government will have nothing to lose by raising them immediately after the elections, they can reduce them for the final year before the next election again.

Thats only if the next govt takes back control of interest rates

brummybloke

woodbine wrote: »

Thats only if the next govt takes back control of interest rates

did they ever really give it up?

Ian_Griffiths_Halifax

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woodbine wrote: »

i`ll go for a cut of 0.75% and bet its not the final cut

I was going to say the same. I can feel it in my blood.

IveSeenTheLight

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GooeyBlob wrote: »

it's now at the stage where they are counter-productive, as they do little or nothing for mortgage holders

I beg to differ, my tracker mortgage means I am now paying less on the interest in my mortgage by more than £300 per month.
I have maintained my payments which means all this saving is going to pay off the capital

A reduction to 1% will mean I am paying more than £350 per month more of the capital repayment :T

harry_w

Keep the rate at 1.5%

Better to protect the currency from further decline now rather than turn a devaluation into a currency collapse. No-one will fund billions in bailouts to banks and 'stimulus' for select groups of voters and politicians' pet projects, if they're only going to be repaid in paper that's worth less than when they lent it.

However, it looks like that's what they'll do - continue the war on savers and future taxpayers. This time they'll ease it through by promising to buy off pensioners with exemption from tax, a cheap sop now which will cost much more in future years. Politically, it will probably work.

People today trying to save for a deposit on a house (or anything) will continue to be taxed on near zero interest rates in a currency being deliberately devalued, to prop up those who created the bubble - the mega-mortgage debtors and the banks who lent them the money, then sold on the debts.