MSE News: Base rate held at 0.5%

jockosjungle

Is the lower rates actually helping all that much though? The reason they did it was to help with mortgages, but banks are not passing the lower rates onto new customers and instead offering huge interest rates that are surely further preventing interest rate rises (4% above base rate is not uncommon).

I get that some people are better off, like the people celebrating on the thread. But in all honesty were you struggling to pay the mortgage before the interest rate decrease?

R

Gorgeous_George

The reason that they did it had NOTHING to do with mortgages.

GG

Paulgonnabedebtfree

Gorgeous_George wrote: »

The reason that they did it had NOTHING to do with mortgages.

GG

Not celebrating but I just find it a relief really.
The longer the rates stay low, the more chance I have of reducing my other debts before they go up again. So a relief that my mortgage is unlikely to go too high too soon and cause me to risk defaulting on debts - or even worse, homelessness. Base rate is not a guarantee for me as my mortgage is based on the quarterly LIBOR rate but for the most part, LIBOR seems to keep within spitting distance of base rate (though this can change if confidence in the banks seriously plummets).

Paulgonnabedebtfree

Gorgeous_George wrote: »

The reason that they did it had NOTHING to do with mortgages.

GG

You're probably right.

Pincher

Paulgonnabedebtfree wrote: »

You're probably right.

Time to fess'up.

My five year fixed rate finished on 30th Sep 2008,
and I got a letter saying I would be paying nearly 7% from 1st October. So I rang my good buddy Mervyn, bought him a beer,
did the secret Masonic handshake, and he pulled the interest rate down slowly over quite a few months so no one will notice.

So they did drop the BOE rate to help me out with my mortgage, you see. I hope nobody minds.

Barneysmom

jockosjungle wrote: »

Is the lower rates actually helping all that much though? The reason they did it was to help with mortgages, but banks are not passing the lower rates onto new customers and instead offering huge interest rates that are surely further preventing interest rate rises (4% above base rate is not uncommon).

I get that some people are better off, like the people celebrating on the thread. But in all honesty were you struggling to pay the mortgage before the interest rate decrease?

R

WE were really struggling as my hubby's accident and subsequent epilepsy means he's no longer able to work so we have to rely on my wages and his IB.
Our mortgage at the moment is about £150 a month less than it was before the rates started dropping.
So it's a yippee from us.

dodgeydave

As a pensioner who has never borrowed beyond his means and now reliant upon hard worked for savings interest. I have little sympathy for those who have and been allowed to borrow beyond their means.

I resent having to subsidies their living with my hard earned capital. I feel that the interest rate should and must go up. I also feel that to invest in a long term bond or saving at this time with a pitiful rate is just helping the banks secure our money at a cheap rate. Under the mattress would seem an ideal place for my savings at the moment and probably as safe as a bank pending a double dip.

I would expect a few savers to start putting some money back into the economy pre vat implementation but only a trickle. I would expect the rate to go up then.

My thoughts are that the rate must and will go up quite soon and hanging fire with ns&i and 2.75 % interest short term accounts spread out.

walshj77

Yipppeeee - for what its worth - I rekon up to 0.75% but March next year.

berniesmaster

our mortgage switches to variable in sept, fingers xed it stays low for a bit after then, as we will be saving a whopping £280 per month!! yaaay!!!!