There has been a revival of negative base rate speculation across the media..

IAMIAM

Is this a good thing? 
How will it impact mortgage rates?
Is this a time where we will see 0.5-1% mortgage rates again? A time to fix long term?
Or more impact on everyday spending rather than lending...
https://www.thebanker.com/World/Western-Europe/UK/BoE-official-revives-negative-rate-speculation
https://www.themoneypages.com/saving-banking/can-savers-counteract-negative-interest-rates/
https://www.hl.co.uk/news/articles/are-negative-interest-rates-on-the-horizon

Thrugelmir

The BOE have discounted the idea recently. 

ultrasilvam

UK banks given six months to prepare for negative interest rates
Bank of England’s monetary policy committee votes to keep rate at 0.1% but gives sector six-month deadline
https://www.theguardian.com/business/2021/feb/04/uk-banks-given-six-months-to-prepare-for-negative-interest-rates 

Phillip Inman

Thu 4 Feb 2021 

[Deleted User]

The preparation will mainly be around mortgage payments not getting messed up if trackers go negative.

During the 2008 onwards financial disaster there were many people with trackers under base rate.  When the base rate plummeted a lot of them went negative.  If it was an interest only mortgage it caused some real odd situations. 
I worked in banking at the time and people we had a department crediting and debiting £1 to mortgages that were interest only. No payment was due but as nothing was going through the account it was marking everyone as late payment on their credit files.

The preparation wont be for selling negative mortgages, but for making sure stupid situations dont appear like they did last time

kingstreet

As most new business products are not related to base rates, but by money market rate swaps this will have little impact. New trackers are all BOE base + 1% or more from what I can see. As JMA said, there might be some old legacy stuff out there from pre-2008 but that will have little/no impact on new business.

ACG

What is with all the posts about the bank of england base rate? 
This is the third one that I recall seeing from you this year.

I am not sure much will have changed in 5 weeks.

Thrugelmir

Discussion boards are currently closed. Second guessing future mortgage interest rates is pointless at the current time. 

IAMIAM

ACG said:

What is with all the posts about the bank of england base rate? 
This is the third one that I recall seeing from you this year.

I am not sure much will have changed in 5 weeks.

I think you'll find this is the same post resurrected.
And I am sure you'll be aware the base rate changed between three times in the space of 28 days in March 2020 and also in 2017 and again 2008. So yes, not much can change in 5 weeks. If you are struggling, think of it like when a mortgage product launches and gets withdrawn by Friday. 

ACG

IAMIAM said:

ACG said:

What is with all the posts about the bank of england base rate? 
This is the third one that I recall seeing from you this year.

I am not sure much will have changed in 5 weeks.

I think you'll find this is the same post resurrected.
And I am sure you'll be aware the base rate changed between three times in the space of 28 days in March 2020 and also in 2017 and again 2008. So yes, not much can change in 5 weeks. If you are struggling, think of it like when a mortgage product launches and gets withdrawn by Friday. 

Apologies you are right. Sorry. 

However, I do not see the relevance to the rest of your reply. The base rate changing is not the only thing that effects mortgage rates, savings rates, how busy they are, what the competition is doing and so on all play a part.

I have no idea where your last sentence comes into play. Firstly, I dont worry about products being launched or pulled unless it going to effect an actual customer. This post and the other (as you say, 2 posts not 3) are both relating to something that may or may not happen and may or may not affect mortgage rates. Comparing it to a lender who is definitely pulling rates on friday seems like apples and oranges - analogies never work. 

dunstonh

It's all because the long awaited document was published today to make sure firms are ready for it should it happen.  Not because it will happen but because it may happen.    The markets have priced it on the expectation it will not happen.