for those who want the base rate to rise

stringsmk2

leveller2911 wrote: »

How many people were forced to go into the banks and forced to take on 125% mortgages? or for that matter self cert and interest only with no repyment vehicle in place to pay off the mortgage?

If interest rates went up but 2.5% how many people with mortgages would be f**ked?...All the people I know personally who are in trouble/living on the brink all bar none over borrowed.

Thats got naff all to do with Sub -prime American debts and all to do with greedy,wannabee chavs who can't be arsed to save for anything.......

and how many of these people are / have defaulted on their mortgages?

Generali

MegaMiniMouse wrote: »

There is a very small number of savings accounts paying worthwhile interest - the Post Office account is operated by an Irish Bank!

MMM

You edited my post for me which is very kind of you to do.

Northern Rock is still a nationalised bank I believe. ING is a UK subsidiary of a Dutch Bank.

HSBC will give you 1.75% on their cash ISA (link), 1.25% over base. Santander will give you 2.9% dropping to 2.4% (link), 1.9-2.4% over base.

This is very generous stuff. Normally you have to work hard just to get the base rate.

Maybe base rates and savings rates aren't strongly correlated.

Sibley

I'm not , I'm wishing for equality instead of Savers propping up the f@ckless

Time will tell Sibley time will tell.....He who laughs last laughs longest

The difference is I'm laughing because I'm saving/paying off a lot of money. It feels great. I'm not laughing or wishing families and friends suffer hard times when banks increase interest rates.

You are not propping up anyone. A few homeowners stretched themselves not all. Most are enjoying the greatest ever time to have a mortgage. We are paying the debt down and had some money left over.

This period has given most people a chance to get ahead.
Not a single person in my group of friends wants rates to rise. We like a spend up.

I expect you will laugh longest. Rates will rise one day and everyone will be miserable.

Whatever floats your boat.

Trust me though. That ain't going to be for a good while yet.
If you really believe you are propping us all up and are twisted up then that's up to you.

chucknorris

Generali wrote: »

At present you can get 2.8% from ING (2.9% from Northern Rock or the Post Office for non-Labourites that would trust this Government with their money). That's 2.3% above the base rate.

When the base rate was around 5%, the Icelandic banks (ie high risk so had to offer high rates) were paying a little over 6% from memory.

I would argue that savings rates are very high compared to the base rate. It means a bank is prepared to pay hugely more to borrow money from you than it can borrow from the Bank of England. It's bordering on the philanthropic.

They were paying just over 7% for a one year bond and just over 7.5% for a 3 year bond. What I do not know however is about 2% over the base rate typically available (in normal times) or was that only because they (and other banks) were getting desperate to draw our savings in.

Does anyone know what the best long term savings historical rates tend to be in relation to the base rate?

Generali

chucknorris wrote: »

They were paying just over 7% for a one year bond and just over 7.5% for a 3 year bond. What I do not know however is about 2% over the base rate typically available (in normal times) or was that only because they (and other banks) were getting desperate to draw our savings in.

Does anyone know what the best long term savings historical rates tend to be in relation to the base rate?

In normal times you'd expect to see the base rate lie roughly in the middle between savings and mortgage rates from the best providers. There might be someone with a rate slightly higher than base trying to draw savers in but for instant access I think that would be quite unusual.

ILW

The whole system does seem to have changed.

We now have savings paying quite a lot over base and much borrowing way over base.

We also have inflation running at around 7 or 8 times base.

It all seems to have fallen apart.

Generali

ILW wrote: »

The whole system does seem to have changed.

We now have savings paying quite a lot over base and much borrowing way over base.

We also have inflation running at around 7 or 8 times base.

It all seems to have fallen apart.

The base rate being so low is just a part of the bank bail out. Once the banks are back on track, and they are getting there for now although they could get properly screwed if sovereigns start to default en masse, things will go back to BAU. Only with fewer banks so higher profit margins for them and less in it for you.

RenovationMan

I'm not about to argue why we have 0.5% BoE rates, or whether they are justifiable. What I will say is that none of us can do anything about it, so you either sit and moan about it on forums and see next to no return on your savings, or you change your investment strategy and take advantage.

I did the former and now I'm doing the latter. I now see this as an opportunity that will only come along once in a generation, perhaps even once in several generations. I'm going to take advantage as much as I can and I suggest others do the same.

wherediditallgothen

RenovationMan wrote: »

I'm not about to argue why we have 0.5% BoE rates, or whether they are justifiable. What I will say is that none of us can do anything about it, so you either sit and moan about it on forums and see next to no return on your savings, or you change your investment strategy and take advantage.

I did the former and now I'm doing the latter. I now see this as an opportunity that will only come along once in a generation, perhaps even once in several generations. I'm going to take advantage as much as I can and I suggest others do the same.

Ok we'll all cross our fingers for a massive rate rise for you then....

lemonjelly

Generali wrote: »

At present you can get 2.8% from ING (2.9% from Northern Rock or the Post Office for non-Labourites that would trust this Government with their money). That's 2.3% above the base rate.

When the base rate was around 5%, the Icelandic banks (ie high risk so had to offer high rates) were paying a little over 6% from memory.

I would argue that savings rates are very high compared to the base rate. It means a bank is prepared to pay hugely more to borrow money from you than it can borrow from the Bank of England. It's bordering on the philanthropic.

With you right up to the final sentence Gen...;)