MSE News: Base rate held at 0.5% again

RenovationMan

Paulgonnabedebtfree wrote: »

I've not been in a position to pay down my mortgage but I am getting my other debts down in the hope that I will survive when the rates climb again.

From what I have read, non-mortgage related rates are not too far away from 'normal' levels (i.e. Pre-credit crunch) so hopefully a BoE base rate increase won't hurt you. Good luck with paying off your debts. I'm usre you probably have already, but if not have a look at the Debt Free Wannabe board, they have lots of nice people and helpful advice for getting out of debt.

Gorgeous_George

Thrugelmir wrote: »

Where are you putting your savings?

Plenty of good rates available.

Used up most of my savings to buy a house a few months ago. What's left is in ISAs (4%-ish), NSandI RPI trackers, Zopa and shares. My ISAs are likely to be surrendered to fund some building work on my home.

But you are right, despite the bleating from many savers, there are great rates available for those who can be bothered to look for then and to those prepared to think outside of the box.

GG

RenovationMan

shortchanged wrote: »

I think everyone wants to be mortgage free, it looks as if your gamble is continuing to pay off.
I just wonder what position you would be in now if base rates were running at 3%+?

Well they're not, so there is there much value in wondering? No doubt I would have adapted to that scenario just as I have to the real one.

Paulgonnabedebtfree

RenovationMan wrote: »

From what I have read, non-mortgage related rates are not too far away from 'normal' levels (i.e. Pre-credit crunch) so hopefully a BoE base rate increase won't hurt you. Good luck with paying off your debts. I'm usre you probably have already, but if not have a look at the Debt Free Wannabe board, they have lots of nice people and helpful advice for getting out of debt.

I post there regularly
I have needed to increase my indebtedness temporarily of late but as one of the army of self employed, sometimes it's good to invest in better tools so that I can work more quickly and take on work that would have been closed to me before. For instance, I recently bought a tool for £1,500 (on credit). Because I have it, I have landed a contract worth £3k a year to me (and there will be others). It looks like I will have that for at least two years. The tool should give me a decade of use with a possible occasional repair en route.

BTW. My mortgage is variable. It is the 3 monthly LIBOR (currently just over 0.8%) + 2%. So paying 2.8% at the moment - shortly to be 2.83%. I had a fixed rate for a few years (5.4%). Just before it ended, the rates started dropping. I've never paid anywhere near 5.4% since it finished.

billykeats

Received letter from mortgage company saying fixed rate of 5.67% finishing and will be going on variable rate of 2.44% + base rate (2.94%)

Do we save this £300+ or over pay? Or do we look to go onto a fixed rate with a view to base rates rising soon. There are very few products that are the same or lower rate of previous product so don't want to be paying more.

Also wife made redundant and have a 3 month old baby girl so there could be a problem with our affordabilty to be able to get a new mortgage. My wife did get a years salary pay off

Looks like we have no choice but to stay on the variable rate and hope the base rate doesn't go above 6% where we would then struggle

hillcats

We have also continued to pay our mortgage at would've been its highest follow on rate of 6.37% BofE + 0.62%
before the rate dropped from 5.75% - This tracker has been great for us... massive debt reduction every month.

temporary1

Thrugelmir wrote: »

Where are you putting your savings?
Plenty of good rates available.

GOOD? With the utmost respect, are you mad?

The BOE has stuck with this crippling low rate so their toady bankmate's debt repayments remain low over this long public payback period (which, to their credit, the conservatives are trying to shorten), so that's their own fault, not savers. For the last 2 years savers have been unfairly punished for bailing out and then continuing to protect banks asset bases from defaulting. Our governing representatives even printed huge wads of fake money for them, which destroyed banking competition (the heart of capitalism), and screwed savers even more.

Until inflation ever manages to stay anywhere near 2% (as has been consistantly and wrongly predicted by the MPC's crystal balls ever since the coven of 9 gutless sooth-sayers was set up), a current FAIR rate would be 6% - a GOOD rate would be 7% - anybody know of a simple and transparent, easy access, bank savings account that's offering this?
RPI based accounts are just more long-term hassle than they're worth - as is the bank's mantrafied and perennially beloved, long-term screw-over tool;- the ISA.

The best 5% savings accounts, in which your money becomes forcibly trapped within an institutionalised gambling system for 5 years, is a legalised extortion racket and an insult.
And insults are not GOOD.

Who said crime doesn't pay?
Saving certainly doesn't.

Thrugelmir

temporary1 wrote: »

GOOD? With the utmost respect, are you mad?

a current FAIR rate would be 6% - a GOOD rate would be 7% - anybody know of a simple and transparent, easy access, bank savings account that's offering this?

Maybe you are.

As the Icelandic bank collapse showed the rates on offer were a mirage.

Banks aren't going to lend mortgage money at 10% in order for you to achieve 7%.

A higher rate requires risk to be taken.

I've been locking into fixed rate ISA's over the years. So now I have a regular roll over of accounts and can afford to take a longer term view.

rickbonar

I think the inflation wipes out any gain from the interest.

Inflation is running at 5.2 % if you believe the official figures in april 2011

Inflation: Retail prices index (RPI) April 2011 (2) 5.2% (5.3%)


What savings accounts pay that? unless of you maybe break the law and put it quietly abroad tax free.

opinions4u

rickbonar wrote: »

I think the inflation wipes out any gain from the interest.

Inflation is running at 5.2 % if you believe the official figures in april 2011

Inflation: Retail prices index (RPI) April 2011 (2) 5.2% (5.3%)


What savings accounts pay that? unless of you maybe break the law and put it quietly abroad tax free.

Google NS&I index linked savings certificates.