Yorkshire BS cutting savings rates

talexuser

C_Mababejive wrote: »

what will all the savers do when the BoE reduces its rate to 0% and the BS follow suit?

You could just as well say what will you do when all your bond companies go bust. A meaningless argument.

C_Mababejive

grey_gym_sock wrote: »

what assets do banks and building societies have? building societies mostly have security on real estate. which is a pretty secure model. better than gold reserves, IMO.
.

They only have charges on properties which they mortgage. The people who bought the houses own them and have a lease on the land on which it stands which is ultimately owned by the crown. So as long as homeowners pay their mortgages,the BS has nothing. I would agree though that property is a better asset than gold at the moment.

kidmugsy

The Yorkshire owns The Chelsea: are its rates being cut too?

alanq

kidmugsy wrote: »

The Yorkshire owns The Chelsea: are its rates being cut too?

For accounts currently on offer check the Chelsea website under interest rates. I looked at Triple Access Saver Issue 2 and that IS being reduced.
http://www.thechelsea.co.uk/savings/easyaccess/triple-access-saver.html

I have not found any announcements for any accounts not currently on offer but I am sure that we will see some reductions there.

kidmugsy

alanq wrote: »

For accounts currently on offer check the Chelsea website under interest rates. I looked at Triple Access Saver Issue 2 and that IS being reduced.
http://www.thechelsea.co.uk/savings/easyaccess/triple-access-saver.html

I have not found any announcements for any accounts not currently on offer but I am sure that we will see some reductions there.

Sod it! Thanks, alanq.

BobQ

C_Mababejive wrote: »

They only have charges on properties which they mortgage. The people who bought the houses own them and have a lease on the land on which it stands which is ultimately owned by the crown. So as long as homeowners pay their mortgages,the BS has nothing. I would agree though that property is a better asset than gold at the moment.

Are you serious.

A building society will only grant a mortgage on the basis that it has a first charge on the property (which includes freehold land in the case of most houses). Provided the owner complies with the terms of the mortgage (including paying it) they will be quite content as they can borrow against the the value of the charges they hold.

Aside from the obscure alloidial rights of the Crown, the BS gets their money back. The idea that a BS has nothing is ridiculous!

talexuser

C_Mababejive wrote: »

So as long as homeowners pay their mortgages,the BS has nothing.

err... the interest on the mortgage is nothing? Please give us the name of your building soc, I want a mortgage :rotfl:

alanq

kidmugsy wrote: »

The Yorkshire owns The Chelsea: are its rates being cut too?

According to the letter that I received today all accounts' interest rates are being reduced from March 4th EXCEPT:
Branch Instant (0.50%), Chelsea Regular Savings(1.50-2.50% depending on balance), Instant ISA (1.25%), Ready Steady Save (2.00%)

Triple Access Saver Issue 1 (2.25%) and Triple Access Saver Issue 2 (2.00%) will be reduced to 1.90%. From March 4th only Triple Access Issue 3 will be available for new accounts and it will pay just 1.65%.

RSPCA Saver Issue 1 (2.20%) and RSPCA Saver Issue 2 (1.95%) will be reduced to 1.85%. From March 4th only RSPCA Saver Issue 3 will be available for new accounts and it will pay just 1.60%.

Monthly Reward ISA Issue 1 (2.25%) and Monthly Reward ISA Issue 2 (2.00%) will be reduced to 1.90%. From March 4th only Monthly Reward ISA Issue 3 will be available for new accounts and it will pay just 1.65%.

Over 50s Instant (not currently available for new accounts) now paying 2.50% (2.75% for £25,000+) will be reduced to 1.80% (2.00% for £25,000+). This was an excellent branch account for which the interest rate held out a lot longer than I expected.

Milarky

Just for general information, a rate cut here of 0.45% is less than 0.5% (and the BOE rate hasn't
moved) Is that considered a 'non-material' reduction or something like that for certain accounts? I mean to ask, had the rate cut been above 0.5% are they required to give a longer period of notice (like 60 days?)

kidmugsy

alanq wrote: »

According to the letter that I received today all accounts' interest rates are being reduced from March 4th EXCEPT....

I'm glad that they are going to let me move my money without need of notice. It makes it likely that my wife and I will save with the Chelsea/YBS at some time in the future.