Rates.... wil they wont they?

poppy10_2

They'll cut by 0.25%, but it won't get passed on to borrowers - banks have already priced it in.

If rates are held, expect to see banks put mortgage rates up in the next few days. LIBOR is at record highs, and current rates are loss-making and unsustainable.

dolce_vita

re-arranging the deckchairs on the Titanic

lisyloo

A cut could possibly cause a post Christmas rise in house prices again and the 'must get on the ladder at any cost' brigade will do just that.

I don't think this it's as easy as it was even for "prime" lending.
A lot of mortgages have been withdrawn totally.
The supply of lending has dried up and the available rates are higher, so there has been a change.

ivegotabig1

The BOE are partly responsible for this anyway..Rates were brought down too quickly to fast, as they were in the states by greenspan !!!
Combine that with irresponsible borrowing & lending too , Why should the BOE cuts rates as a consequence of these two groups poor fiscal behavior ?
With inflation still far from defeated i think a Hold is the best option, short term pain for longer term gain IMO.. saying that, its too close to call... but think it might just be a hold ..

kennyboy66_2

dannyboycey wrote: »

A cut could possibly cause a post Christmas rise in house prices again and the 'must get on the ladder at any cost' brigade will do just that. The fallout, although delayed will then be of biblical proportions. Full-on recession anyone?

Not a chance that house prices will take off as a result of a 1/4 point cut.

No change or small cut - it really won't make a great deal of difference. The housing market is heading down and like the tide and King Canute, no one can stop it.

There has been a real increase in mortgage rates due to the re-pricing of risk and a large decrease in the availability in mortgages to marginal customers.

I'm not sure why the rest of the economy should suffer to placate the hair shirt, "if its not hurting, its not working" inflation nutters.

PasturesNew

They will hold.
If they reduce the rates we're all doomed.
If they raise them just before Xmas we'd have effigy burnings in the street.

They SHOULD put them up. But they won't because of the outcry.

sammyjammy

I'm on a tracker mortgage but the difference is minimal on my £67k mortgage, I'm trying to look at the bigger picture so want them to hold it, its very rare for them to cut in December as it encourages overspending. Fingers crossed.Sam

Doozergirl

No £2 wager this month, Generali?

lisyloo

I'm on a tracker mortgage

Does it track the BOE base rate or the lenders rate?
Makes a big difference in todays scenario.

dannyboycey

kennyboy66 wrote: »

Not a chance that house prices will take off as a result of a 1/4 point cut.

The rates wont get passed on. However, sentiment is everything! And that 1/4 point will be enough to convince those who are undecided that now is a good time to buy, things will get better and house prices will only ever go up.

Fingers crossed then, about 5 mins to go!...... Hold. Hold. Hold.....