Base rate could be at 0.5% untill the end of 2011

Thrugelmir

Really2 wrote: »

One here

Me too :beer:

mewbie_2

Thrugelmir wrote: »

Me too :beer:

I'm one as well, only bit of luck I've ever had.

Thrugelmir

lemonjelly wrote: »

Wondering if it is more a case of customers being fought for by these institutions?

In a sense yes. The banks need money deposited in order to lend, or maintain their lending ar current levels. If you are a high interest lender means you can offer good rates to savers. Thats why the recent Newcastle BS 5% fixed term offer got snapped up in days.

I feel that we are the start of a significant trend. For those able to save, returns will be positive (above inflation) with minimal risk.

Thrugelmir

mewbie wrote: »

Does cheap rates imply bubbles building in commodities, equities, etc? No point in keeping money in a savings account.

FTSE has been driven in part by commodities since March. Last time I looked mining stocks were up 30% as a sector. Those chinese investors appear to be stockpiling metals again.

Thrugelmir

mewbie wrote: »

I'm one as well, only bit of luck I've ever had.

Yet we're bearish......

michaels

Well muggins went for an svr discount cos he couldn't see the margin between svr and base widening by more than 50 basis points given what a competitive mortgage market it was when he went for his deal

Still my savings are on instant or 90 day access paying an average of 3.6% more than the mortgage and when I started the mortgage stooze I was looking at a profit margin of only between 70 and 100 basis points so I guess I shouldn't complain too much about a stooze that will make me about 11k rather than the 3k I expected.

mewbie_2

Thrugelmir wrote: »

Yet we're bearish......

So vested interest is precisely zero. Less than zero in some ways. But no point in pretending, I'd rather have some idea what is likely to happen in the next few years.

At least the expectation of HPC stopped me 'investing' in BTL. My other piece of luck I suppose.

Thrugelmir

mewbie wrote: »

So vested interest is precisely zero. Less than zero in some ways. But no point in pretending, I'd rather have some idea what is likely to happen in the next few years.

At least the expectation of HPC stopped me 'investing' in BTL. My other piece of luck I suppose.

Although my mortgage is reducing rapidly. I have still lost money ( hard cash) as bought in the peaks of 2007. So I'm still out of pocket by around £35k. I doubt whether interest rates will stay this low until 2015 when I would have recouped my losses.

Heyman_2

Me three :beer:

So it's great at the moment - I'll need to do a bit of scheming to get us sorted out when the rates start going up though :cool:

Really2

Heyman wrote: »

Me three :beer:

So it's great at the moment - I'll need to do a bit of scheming to get us sorted out when the rates start going up though :cool:

Hopefully 20% of my mortgage will be gone by then. Then the offset should be worth it.