BoE Interest Rate will go up in Ist quarter of 2011 ??

Pimperne1

Thrugelmir wrote: »

Easy point to answer. Banks and building societies have no need to "compete" for business so margins will be maintained. As overall net lending is still contracting.

The FSA levy to fund the Icelandic savers is costing around a .25% on mortgage lending. The wholesale borrowing banking levy will also be a cost passed onto borrowers.

Lenders that offered rates sub 1% above base not so long ago were losing money. So new borrowers will be subsiding the lucky few for a few years to come.

I'm not talking about them competing. They should reduce their margin for the public good.

Thrugelmir

Pimperne1 wrote: »

I'm not talking about them competing. They should reduce their margin for the public good.

Why? Bank shares are held by pension funds and other investment vehicles. That's where the return should be directed.

Pimperne1

Thrugelmir wrote: »

Why? Bank shares are held by pension funds and other investment vehicles. That's where the return should be directed.

Yes maybe we should just make the ones that were bailed out by the taxpayer more consumer friendly. Not sure how easy it would be but I don't think an increase in repossessions would be good for anyone (well, to be entirely accurate it would be good for a very small minority).

Thrugelmir

Pimperne1 wrote: »

Yes maybe we should just make the ones that were bailed out by the taxpayer more consumer friendly. Not sure how easy it would be but I don't think an increase in repossessions would be good for anyone (well, to be entirely accurate it would be good for a very small minority).

Repossessions are a media headline. Not a particularly material influence on the overall property market. More people will sell up and move into rented accomadation or downsize to relieve their burden of debt.

Same as negative equity. Providing you can meet the monthly outgoing. Over time the situation will correct itself.

The bailed out banks will be a shadow of their former selves by the time the rebuilding process is complete. RBS at its peak operated in 57 countries around the world and was the largest operator in 13.

Pimperne1

Thrugelmir wrote: »

Repossessions are a media headline. Not a particularly material influence on the overall property market. More people will sell up and move into rented accomadation or downsize to relieve their burden of debt.

Same as negative equity. Providing you can meet the monthly outgoing. Over time the situation will correct itself.

The bailed out banks will be a shadow of their former selves by the time the rebuilding process is complete. RBS at its peak operated in 57 countries around the world and was the largest operator in 13.

Actually I agree that the repossession situation is overblown. Whenever I see it suggested it is usually some kind of VI such as Shelter or CML. I don't think they have been accurate in the past so why should they in the future. Having said that I do think the banks are profiteering at the moment (not saying that it would be right that they be tied close to the BoE rate just that the difference should not be so pronounced). I don't think the Government would let it happen so much if the petrol or bread providers were profiteering at the expense of the nation so banks have an equal duty to be fair and equitable.

HAMISH_MCTAVISH

Thrugelmir wrote: »

Banks and building societies have no need to "compete" for business

Yet.....

But they will as funding increases and new entrants get into the market, attracted by the high margins.

so margins will be maintained.

For now.

As overall net lending is still contracting.

Which is unsustainable for Bank revenue streams for anything other than the short term.

So new borrowers will be subsiding the lucky few million for a few years to come.

Fixed that for you.

Generali

Pimperne1 wrote: »

I'm not talking about them competing. They should reduce their margin for the public good.

:rotfl::rotfl::rotfl:

What about the shareholders? They might have a word or two to say about that.

The Labour Government bailed out the banks but part of the bailout was that it was BAU afterwards. Well with half the top 10 banks from 2006 bust and nationalised, this is the new BAU.

Pimperne1

Generali wrote: »

:rotfl::rotfl::rotfl:

What about the shareholders? They might have a word or two to say about that.

The Labour Government bailed out the banks but part of the bailout was that it was BAU afterwards. Well with half the top 10 banks from 2006 bust and nationalised, this is the new BAU.

What word or two did they use when the Government levied a windfall tax on the private utilities?

Thrugelmir

HAMISH_MCTAVISH wrote: »

But they will as funding increases and new entrants get into the market, attracted by the high margins.

and no doubt you're expecting Santa to pay you a visit too........;)

[Deleted User]

1984ReturnsForReal wrote: »

As they do not know the Xmas factor or the impact of VAT it would be pretty much stupid of them to do anything Jan or Feb

I can work that out on the back of one of osbornes fag papers
vat will increase inflation
highh st/internet xmas sales will be flat,even flatter than last year when you factor in inflation.

Basically the economy is stagnating