What will the BOE rate be set at this month?

tomterm8

Um, and the Great Depression. And 2001 in the US.

lana22

What happens to people who are on BOE - so many percent? I am sure there are people on BOE -0.5% or something similar? I presume there is a clause built in to prevent the banks having to pay people to keep their mortgage?

What about if we get deflation? Will the student loan company have to pay me

Oooh also, is it possible to have negative interest rates? Surely not? It can't be possible to say "ooooh please take this money from me, and I will give you some interest for looking after it for me"

tomterm8

lana22 wrote: »

What happens to people who are on BOE - so many percent? I am sure there are people on BOE -0.5% or something similar? I presume there is a clause built in to prevent the banks having to pay people to keep their mortgage?

What about if we get deflation? Will the student loan company have to pay me

Some (extremely rich) people are on Base rate - 1.5%, and are currently being paid by the banks to have a mortgage. More ordinary people are on trackers, with a term in their contract that says the interest rate can't go below a certain number ( in most cases, 3%, in others 0%).

StevieJ

lana22 wrote: »

What happens to people who are on BOE - so many percent? I am sure there are people on BOE -0.5% or something similar? I presume there is a clause built in to prevent the banks having to pay people to keep their mortgage?

What about if we get deflation? Will the student loan company have to pay me

Oooh also, is it possible to have negative interest rates? Surely not? It can't be possible to say "ooooh please take this money from me, and I will give you some interest for looking after it for me"

I think they call it a collar when deals are restricted to a certain level.

lana22

tomterm8 wrote: »

Some (extremely rich) people are on Base rate - 1.5%, and are currently being paid by the banks to have a mortgage. More ordinary people are on trackers, with a term in their contract that says the interest rate can't go below a certain number ( in most cases, 3%, in others 0%).

Really? So some people are actually being paid to have a mortgage? That is a pretty incredible position to be in!

I am on a tracker +0.68% above base rate, and I thought it had a collar but apparently it doesn't. (well maybe 0%, but I'm not sure really).

Really2

lethal0r wrote: »

i think most people are saying 0.5% without even thinking about it, that because of all the recent frequent large drops it is a matter of course. but if the government was planning to drop to 0.5%, then why didnt they just do it last month? .

Because it is like currency chess and if we droped 1% last month we would have sacrificed the £

dealsearcher

lisyloo wrote: »

No it isn't.
It's 1% now.

Is it really? I must have missed a rate cut. :eek:

I can't keep track of this. Maybe I should be chancellor for ten years and then become the PM.

Plasticman

Down to 0.5% then time for QE. Fingers crossed all round - time to hope for the best.

Thrugelmir

lana22 wrote: »

What happens to people who are on BOE - so many percent? I am sure there are people on BOE -0.5% or something similar? I presume there is a clause built in to prevent the banks having to pay people to keep their mortgage?

What about if we get deflation? Will the student loan company have to pay me

Oooh also, is it possible to have negative interest rates? Surely not? It can't be possible to say "ooooh please take this money from me, and I will give you some interest for looking after it for me"

There will be a considerable number of people coming off 2 year tracker fixes over the coming months. They won't be so happy with their mortgage repayments then!

Really2

Thrugelmir wrote: »

There will be a considerable number of people coming off 2 year tracker fixes over the coming months. They won't be so happy with their mortgage repayments then!

I would say SVR is cheaper than their mortgage 6 months ago.