Negative Interest Rates

rothers

Deleted_User said:

When i worked in Halifax i came across quite a few people who had trackers around the financial crash in 2008/2009. They went in to negative rates and the bank were crediting their mortgage each month with an interest payment.  
The ones on capital repayment just had a reduction in payment but the ones on interest only had a big issue as the direct debits stopped requesting payments and people were having missed payments marked on their credit files.   People ended up having to make £1 payments to just have the system work properly.  

Im sure its a smarter system now than it used to be but on your original question, yes the lender would be paying you. They probably wont actually give you money but will probably pay it in to your mortgage account

Thanks for that. Would a floor be mentioned on the key facts/mortgage offer or in some other documentation? I’ve never seen anything about a floor. 

Getting_greyer

grumiofoundation said:

Getting_greyer said:

Imagine getting paid to have a mortgage.  
Tbf if your interest rate is below inflation its negative in real terms anyway. 

https://www.theguardian.com/money/2019/aug/13/danish-bank-launches-worlds-first-negative-interest-rate-mortgage

(over 1 year old)

Not sure why you quoted me?  

grumiofoundation

Getting_greyer said:

grumiofoundation said:

Getting_greyer said:

Imagine getting paid to have a mortgage.  
Tbf if your interest rate is below inflation its negative in real terms anyway. 

https://www.theguardian.com/money/2019/aug/13/danish-bank-launches-worlds-first-negative-interest-rate-mortgage

(over 1 year old)

Not sure why you quoted me?  

Just because you said 'imagine getting paid to have a mortgage', wanted to help your imagination