Are borrowers really making a conscious effort to pay down debt?

Mozette

Back to the original point of the thread (sorry...) I was going to overpay my mortgage with the amount it dropped, but I needed some urgent work on my house done, so I've been paying for that via a 0% card with what I was previously paying on my mortgage.
So I'm sort of paying off debt, just that it was new debt.


As for food, if I can't really be bothered I have porage. Slow release carbs you see. Less troublesome for the pancreas.

Snooze

I'm struggling with this thread... all this 'niceness' isn't computing here :huh:. Where is all the arguing? :cool:

Chucky, did you know that mortgage rates are linked to BoE rates? Tis true you know.

R

carolt

PasturesNew wrote: »

2 nuked spuds and half a tin of Tesco value sliced carrots.

If in doubt again, always eat chocolate.

Works for me.

IveSeenTheLight

Snooze wrote: »

I'm struggling with this thread... all this 'niceness' isn't computing here :huh:. Where is all the arguing? :cool:

Chucky, did you know that mortgage rates are linked to BoE rates? Tis true you know.

R

I see the link, I see the link.
They both have the word "rates" as bolded in your sentence.

If their linked, then why haven't they dropped like the BoE rate has?

Only mortgage products which state they follow the BoE rate apply.
The gap between the BoE rate and the mortgage rate has increased to give the lenders room for when BoE interest rates rise.

When the BoE rates rise, do not expect to see the current gap between the two remain. It will close up again.

We are already seeing new mortgage products come to the market with lower rates, a sign that they believe more firmly that the BoE low rates are likely to be with us for a while.

Snooze

IveSeenTheLight wrote: »

I see the link, I see the link.
They both have the word "rates" as bolded in your sentence.

If their linked, then why haven't they dropped like the BoE rate has?

Only mortgage products which state they follow the BoE rate apply.
The gap between the BoE rate and the mortgage rate has increased to give the lenders room for when BoE interest rates rise.

When the BoE rates rise, do not expect to see the current gap between the two remain. It will close up again.

We are already seeing new mortgage products come to the market with lower rates, a sign that they believe more firmly that the BoE low rates are likely to be with us for a while.

:rotfl: :T

R

Thrugelmir

IveSeenTheLight wrote: »

The gap between the BoE rate and the mortgage rate has increased to give the lenders room for when BoE interest rates rise.

When the BoE rates rise, do not expect to see the current gap between the two remain. It will close up again.

We are already seeing new mortgage products come to the market with lower rates, a sign that they believe more firmly that the BoE low rates are likely to be with us for a while.

Interesting perspective.

So depositors are happy with rates below .5% :rolleyes:

Take a look through the Sunday press and see the number of adverts offering fixed term deposit rates that are well above BOE base.

Also the banks are recovering the cost of increased FSA levies within their "profit" margin. Whilst savers get their money back if an institution goes bust someone else pays the cost.

IveSeenTheLight

Thrugelmir wrote: »

So depositors are happy with rates below .5% :rolleyes:

I didn't say depositors / savers were happy with 0.5% or below.
They are what they are though.

Thrugelmir wrote: »

Take a look through the Sunday press and see the number of adverts offering fixed term deposit rates that are well above BOE base.

Also the banks are recovering the cost of increased FSA levies within their "profit" margin. Whilst savers get their money back if an institution goes bust someone else pays the cost.

So you are kind of backing up my point about low BoE rates for a while.
Get money in from savers offering them higher than BoE rates (no withdrawels) and use the monet to lend out to higher rates.

Thrugelmir

IveSeenTheLight wrote: »

So you are kind of backing up my point about low BoE rates for a while.
Get money in from savers offering them higher than BoE rates (no withdrawels) and use the monet to lend out to higher rates.

Rates for deposits are have risen as competition for funds increases. The BOE is this sense has no control over mortgage rates with the base rate so low.

The money deposited on fixed term is used to fund corresponding fixed term mortgages.

Historically deposit rates and SVR's have maintained a spread under and over base -2% / +2% . No sensible saver other than maintaining cash in say a bank current account is going to accept a sub .5% return.

IveSeenTheLight

Thrugelmir wrote: »

Rates for deposits are have risen as competition for funds increases. The BOE is this sense has no control over mortgage rates with the base rate so low.

The money deposited on fixed term is used to fund corresponding fixed term mortgages.

Historically deposit rates and SVR's have maintained a spread under and over base -2% / +2% . No sensible saver other than maintaining cash in say a bank current account is going to accept a sub .5% return.

I don't disagree with any of that?

We are seeing competativeness from banking institutions for fixed term deposits.
We are also starting to see competativeness return to the mortgage product market.