UK interest rates held at 0.5% for years

Old_Slaphead

rb10 wrote: »

So they are getting, say, 3.5% on their mortgages, and paying you 2.75%. That's not a very big profit margin, especially when they take out costs and write-offs.

Admittedly levellers comments appeared a bit exaggerated but they're only paying around 1.4% on new money so a 2% margin ain't too bad on their balance sheet.
No wonder the CEO and board are getting football star salaries for operating a "safe & boring" mutual.

lvader

MoneySaverLog wrote: »

I'll agree to disagree, I believe low interest rates are the wrong thing to do

Fortunately we have more qualified people in charge to make the right choices.

MoneySaverLog

lvader wrote: »

Fortunately we have more qualified people in charge to make the right choices.

Well the country is going to the dogs, may as well borrow up to the hilt and squander it all now as it's no longer viable to save and let the government pick up the bill in old age then.

Long term this will fail.

Thrugelmir

MoneySaverLog wrote: »

I'll agree to disagree, I believe low interest rates are the wrong thing to do

Unfortunately UK plc is not as wealthy as it believes. Low interest rates are a necessity until such time as the economy recovers. If you've followed Japan's problems. Then could be a very long time.

Old_Slaphead

FLAPJACK wrote: »

So have a ball spend your capital then when you are down to £6k claim benefits.....adding to the governments debt.

When you're an old git and you're sitting in your tiny flat and shivvering because your boiler's broken and the council don't think it's a high enough priority to repair - perhaps you'll remember these words as you wave your friends off on their winter break to Spain.

Still you'll have all your gadgets to play with even though they became obsolete just 2 weeks after you bought them.

lvader

MoneySaverLog wrote: »

Well the country is going to the dogs, may as well borrow up to the hilt and squander it all now as it's no longer viable to save and let the government pick up the bill in old age then.

Long term this will fail.

The country has been in decline for a long time, interest rates won't change that. It's a tough world out there and we somehow need to find a way to compete. In the long run a weaker currency does help to a certain extent.

FLAPJACK

Old_Slaphead wrote: »

When you're an old git and you're sitting in your tiny flat and shivvering because your boiler's broken and the council don't think it's a high enough priority to repair - perhaps you'll remember these words as you wave your friends off on their winter break to Spain.

Still you'll have all your gadgets to play with even though they became obsolete just 2 weeks after you bought them.

What are you on???

leveller2911

rb10 wrote: »

Sorry, but this is complete nonsense.

Most of Nationwide's balance sheet is mortgages. Credit cards contribute only a tiny part of this.

What sorts of rates are they offering on mortgages at the moment? Largely in the 3-4% region.

So they are getting, say, 3.5% on their mortgages, and paying you 2.75%. That's not a very big profit margin, especially when they take out costs and write-offs.

What I posted IS FACT I am referring to savings v credit card interest. They were giving 6.49% interest on Bonds/ISA at the same time they were charging 9.9% on their credit card.
Now they are giving 2.75% on ISA's and charging 20% on their credit card......

Their profit margin on savings interest to credt card interest is far higher than it was.

Glen_Clark

lvader wrote: »

The goverment doesn't set interest rates.

Osborne fixed Carney up with an £850k +++ job.
And yet they tell us Carney is independant of Osborne.
Well they would say that, wouldn't they.
I am only surprised you believe it.

Glen_Clark

Thrugelmir wrote: »

If you've followed Japan's problems.

Its a nonsense to compare interest rates without comparing inflation rates.
Japan has actually had deflation !!!