Bank Of England MPC - Interest Rates CUT to 0.25% + QE increase £60 Billion

iantojones40

Jack_Johnson_the_acorn wrote: »

Are you seriously that dim? Or are you being severely pedantic over the word "homeowners".

I'm sure you already know that one doesn't have to own a house outright to be classified a "homeowner"......

Just a simple answer to a simple question will suffice.

System

Jack_Johnson_the_acorn wrote: »

Are you seriously that dim? .

OK, I'm dim too. Tell me why a minute reduction in a borrowing cost that is already at a record low level should be such fantastic news for a borrowing home-owner?

Jack_Johnson_the_acorn

Clifford_Pope wrote: »

OK, I'm dim too. Tell me why a minute reduction in a borrowing cost that is already at a record low level should be such fantastic news for a borrowing home-owner?

For the dim- as per the BEEB.

Generally, a Bank rate cut is regarded as good for borrowers - particularly those with a mortgage - and bad for savers.
Using Office for National Statistics (ONS) house price data, a cut to 0.25% means a £22 monthly reduction in the bill for a variable 25-year repayment mortgage on a typically priced home of £211,000 having taken a 20% deposit into account.
So that is a £22 cut on a monthly mortgage bill of about £779.

£528 a year for nothing is generally considered pretty good news.

marathonic

Jack_Johnson_the_acorn wrote: »

For the dim- as per the BEEB.

Generally, a Bank rate cut is regarded as good for borrowers - particularly those with a mortgage - and bad for savers.
Using Office for National Statistics (ONS) house price data, a cut to 0.25% means a £22 monthly reduction in the bill for a variable 25-year repayment mortgage on a typically priced home of £211,000 having taken a 20% deposit into account.
So that is a £22 cut on a monthly mortgage bill of about £779.

£528 a year for nothing is generally considered pretty good news.

Agreed. And as I mentioned to co-workers today, the talk last year was of a rise in interest rates so a 0.25% drop instead of a 0.25% rise makes a £1,055 annual difference to the holder of the above £211,000 mortgage.

Thrugelmir

wotsthat wrote: »

Come on. As a result of this change in base rates just how much are you going to cut back on spending to save instead?

Will be a few % every month. Apply that across a few million people and the services sector will notice the difference.

westernpromise

A reduction in the cost of the mortgage on a house makes the relative cost of renting that house instead higher. So one thing this rate cut does that we have not so far noted is to increase the BCR of all those short speculators who are renting while betting on a price crash. Because renting just got relatively more expensive, they now need house prices to crash that little bit more in compensation.

Prices certainly will retrace for a while at some point, but they won’t fall by the 130% or so that Crashy needs to break even, or even by the 129.5% that Crashy needed until today.

Thrugelmir

Jack_Johnson_the_acorn wrote: »

For the dim
£528 a year for nothing is generally considered pretty good news.

I make £22 a month £264 a year.

iantojones40

Jack_Johnson_the_acorn wrote: »

For the dim- as per the BEEB.

Generally, a Bank rate cut is regarded as good for borrowers - particularly those with a mortgage - and bad for savers.
Using Office for National Statistics (ONS) house price data, a cut to 0.25% means a £22 monthly reduction in the bill for a variable 25-year repayment mortgage on a typically priced home of £211,000 having taken a 20% deposit into account.
So that is a £22 cut on a monthly mortgage bill of about £779.

£528 a year for nothing is generally considered pretty good news.

Well your first sentence is certainly VERY accurate... anything coming from the BEEB is definitely for the dim.

If you're relying on obtaining and regurgitating all your information courtesy of the State Propaganda Broadcasting Service then your problems are even bigger than I thought.

Whether you consider it pedantic or not the fact is a mortgagee is not homeowner, why don't you try stopping paying your mortgage for a couple of months then come back and tell me if you still feel like a homeowner.

You don't seem to have mentioned the asset price bubble, including house prices, that is a direct consequence of ZIRP and QE and which is not at all beneficial to owner occupiers and is hugely detrimental to the wider economy as a whole, what does dear old Aunty Beeb have to say about that?

Crashy_Time

Jack_Johnson_the_acorn wrote: »

This is fantastic news for homeowners. How does this affect you Crashy?

Well my FTSE tracker produced some more "magic money", how does it affect you?

Graham_Devon

Just been reminded by the TV that the IMF were also warning of interest rate rises should we vote for Brexit.

We were told to listen to all these experts. So what happened?

At a briefing in the Treasury to unveil its regular report on the UK’s economic outlook, Ms Lagarde claimed that Brexit posed a "significant downside risk" and could see interest rates "rise sharply". She said the prospect of Brexit was causing "anxiety around the world".