Possible BOE Interest Rate Cut - My Mortgage!

akwe-xavante

Mark Carney & the Bank Of England has just announced a possible cut in the BOE Interest Rate. I'm more than interested in this at the mo because i have a fixed variable rate of interest on an interest only mortgage. I have an endowment to cover it i hope but i know it'll fall short of the monies owed but thats not why i'm writing this tread.

My fixed variable rate is 0.057% above the BOE rate, that's right "Naught point Naught Five Severn".

It's hardly worth while the lender collecting my monthly payment as it is at just under £18 a month. If the rate goes down even a quarter of one percent it may be costing the lender more money to collect the payment than its worth. If the rate goes down even more...........

Will the lender start paying me some money every month?

If we get a negative BOE Interest rate will we as savers have to start paying our banks and building societies a monthly interest payment on our savings!?

dimbo61

Why worry, wait and see what happens.
Overpay the mortgage is you have no other debts

AnotherJoe

Have you been taking advantage of this situation over the past few years and either overpaying or even better putting your overpayments into higher interest accounts so when the mortgage term ends you can pay off the shortfall?

David_White

akwe-xavante wrote: »

If we get a negative BOE Interest rate will we as savers have to start paying our banks and building societies a monthly interest payment on our savings!?

I can't see a situation where savings rates are negative.

I've seen savings accounts in the past offering 0% or 0.1% but if they were actually costing the client money they'd all just take their money out and put it under the mattress which doesn't help the bank.

The banks don't need to charge a fee on savings as they make their money by investing/lending it.

davidmcn

akwe-xavante wrote: »

Will the lender start paying me some money every month?

If we get a negative BOE Interest rate will we as savers have to start paying our banks and building societies a monthly interest payment on our savings!?

If you read the conditions you will (probably!) find they've made sure that the interest rate can't go the "wrong" way.

e.g. from Halifax's mortgage conditions:

"However, if the discount means that your interest rate would fall below zero, your interest rate will be 0% instead."

amnblog

It's OK.

Mark has 250,000,000,000 rounds of ammo to use up first.

brit1234

It sucks. Mark Carney said he would raise interest rates if inflation rose over 2%, he didn't. He said he would raise interest rates if unemployment was under a certain amount, it is and he hasn't raised them. He keeps saying he will raise interest rates in times in the future, those times come and he doesn't.

This man has no record of raising interest rates in the UK or native Canada, he has always lowered them and encouraged debt and housing bubbles. He chooses short term growth at the expense of future economic melt down, he sucks.

These emergency low rates are becoming the norm and he is destroying prudent savers like myself who are trying to save a deposit for a house. He is a fraud and that is why he was hired.