MSE News: Base rate held at 0.5%

VT82

Vincenzo wrote: »

The margins on lending are much more profitable now than they were in 2007.

If only where I worked was still lending!

That is one big payrise. I'm guessing you have a £200k mortgage then - hope you are saving up the difference to overpay when rates rise!

Vincenzo

VT82 wrote: »

If only where I worked was still lending!

That is one big payrise. I'm guessing you have a £200k mortgage then - hope you are saving up the difference to overpay when rates rise!

About £240k remaining. I am investing the difference and don't intend to over pay.

I have at least 1 more move to do and plan to retain the lifetime tracker. At 0.79% above base I expect it to remain good value over the term.

wymondham

The economy must be really screwed if rates stay this low!

Vincenzo

ExploitationIsFun wrote: »

Hopefully rates will be kept this low for the next 20-25years (until ive got a mortage and paid it all off)! :T:D:beer:

Works for me! I can't see it somehow but I suspect it will 3-5 years before we see a base rate of 5% again.

Gorgeous_George

hillcats wrote: »

Must confess to having an interest in both sides to this conversation, we have a tracker mortgage that is being offset with some savings....

If your offset savings are earning near zero, move them somewhere else. For example, LloydsTSB offer a 2.5% rate on one of its savings accounts. That's equivalent to 2% in a basic rate taxpayer's offset mortgage account. Putting it in ISAs could be even better.

GG