?Halifax expecting rate change on Thurs?

Cannon_Fodder

mewbie wrote: »

Yeah I might go for .5% as well, although I haven't heard what the poll of economists thinks yet. After all inflation is well below the 2% target now. Isn't it?

CPI is the measure they target - its still at 3%.
http://www.bankofengland.co.uk/
(next due 24/3/9)


I don't expect them to worry about missing the target anyway, they haven't for about 6 years...

-0.5% expected.

geoffky

Everyone should try to be paying 6% on their payments even if they are on a tracker as when it rises it wont be a shock to the purse. UnLESS they are stupid enough to have 20% + interest rates on credit cards etc.

space_rider

I`ve actually lost interest now. Just thankful I still have a job. Thought it was brilliant when it started to come down in October but all the job losses have overshadowed it. I am saving the difference between what the rate is and an interest rate of 7% just to be on the safe side. I was making overpayments but my silly mortgage company have reduced it.

LHR777

The City has factored in a .5% cut already. Meltdown otherwise and GB is best off staying in the US!

lana22

geoffky wrote: »

Everyone should try to be paying 6% on their payments even if they are on a tracker as when it rises it wont be a shock to the purse. UnLESS they are stupid enough to have 20% + interest rates on credit cards etc.

I am paying the equivalent of about 5.5%, but I don't actually think that's the right thing to be doing, because I have a student loan, which, now my mortgage rate has been cut, is at a higher rate of interest than the mortgage (albeit still a low rate). It would probably be more prudent to pay that off instead.

mdb99jh

lana22 wrote: »

I am paying the equivalent of about 5.5%, but I don't actually think that's the right thing to be doing, because I have a student loan, which, now my mortgage rate has been cut, is at a higher rate of interest than the mortgage (albeit still a low rate). It would probably be more prudent to pay that off instead.

I'm not sure that's quite right. Your student loan will always be a very low interest loan whereas in the future your mortgage interest rate will almost certainly go up. Looking long term, the more you pay off your mortgage now the less interest incurred when the rate isn't so low. This obviously assumes that you have a few years left on your motgage, a fair assumption if you're still paying student loan!

lana22

mdb99jh wrote: »

I'm not sure that's quite right. Your student loan will always be a very low interest loan whereas in the future your mortgage interest rate will almost certainly go up. Looking long term, the more you pay off your mortgage now the less interest incurred when the rate isn't so low. This obviously assumes that you have a few years left on your motgage, a fair assumption if you're still paying student loan!

To be honest I haven't even started paying my student loan back as only graduated last year! And also have 24 years left on mortgage!
The reason I have carried on overpaying mortgage has been because obviously the student loan is linked to income, so if I take time off for babies etc then I won't pay it.

I see what you mean about the long term benefits of paying off the mortgage first, I suppose I hadn't seen it quite like that until now. I am hoping to carry on overpaying even when interests rates rise as my salary risees fairly quick and we don't have a massive mortgage to start with.

The other thing is though my student loan is massive. I think it was about £19k last time I looked because i was at uni for 6 years:eek:
Start paying it off next month, but shouldn't really notice as it's only 6% salary. Although I am pretty certain that won't even cover the interest payments, so the loan is only going to grow and grow.:mad:

mewbie_2

space_rider wrote: »

I`ve actually lost interest now.

We all have. No point in having any savings.

tomstickland

I've just transferred savings into the mortgage instead. Whilst savings rates outstripped savings it made sense to have them.

mewbie_2

tomstickland wrote: »

Whilst savings rates outstripped savings it made sense to have them.

Doesn't make sense to me...