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Mortgage with negative interest rates coming

curehead
curehead Posts: 22 Forumite
in Mortgages & endowments
Hi,
I am on a tracker + 0.89%. If the BOE were to lower interest rates by 1% would I actually earn money on my mortgage?


I can imagine the replies: floor at 0% probably.


but we also thought our interest rate we earn on our savings would have a floor at 0% and it looks like this could change...

Comments

  • kingstreet
    kingstreet Posts: 39,442 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You need to check the terms of your product.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • amnblog
    amnblog Posts: 12,784 Forumite
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    Are the BOE really going to set rates at -1%?

    Charging Banks to hold their deposits for them?
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • sleepyjones
    sleepyjones Posts: 6,093 Forumite
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    I was reading the other day about RBS / Natwest charging business customers negative intrest
    "The RBS group, which includes NatWest, warns customers they may be charged for keeping money in accounts if base rates are cut."
  • karlos_the_jackal
    karlos_the_jackal Posts: 32 Forumite
    amnblog wrote: »
    Are the BOE really going to set rates at -1%?

    Charging Banks to hold their deposits for them?

    Mark Carney has said that he's not a fan of negative interest rates. Rates may go down to 0.25 or 0% but are unlikely to go lower.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    amnblog wrote: »
    Are the BOE really going to set rates at -1%?

    Charging Banks to hold their deposits for them?

    Some banks already do so on Euro denominated accounts. RBS currently doesn't.
This discussion has been closed.
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