0.25% cut in BoE base rate

Paul_N_4

adr0ck wrote: »

still sounds like a lot of money to me

if anyone thinks £350 is nothing i will readily accept any cash donations

What I'm saying is a saving of £7.50 per week should not matter much to someone who so willingly borrowed £200,000 of someone elses money.

Kernow_Kid

neas wrote: »

This is symbolic attempt to try and curb the HPC.... To ease people... psychology... people will feel better they wont notice the food bill go and the car petrol bill go up... these are hidden in the weeds... so to say.
quote]


This is exactly the point.
The economy is completely out of our individual control, but as a mass community we are much more likely to direct it.

If the media start to say that there will be a housing market crash, more and more people will believe it, and then act on it, thus causing the crash that may not have happened without the media's interference.

A symbolic gesture like this will placate the media to a certain extent, and this will then reflect in the mass public opinion.

I know that the cut in our monthly costs will be more than swamped by the rising costs of fuel, food, gas, etc., but when the general public see their biggest debt shrunk, even by a small amount, it makes them feel more at ease than a larger cut in the costs of small items.

A simple way to look at it is this:
Would you prefer a 0.5% cut in the total monthly cost of your mortgage,
or a 5% cut in your utility bills - gas, electric and water?

Decide quickly and without checking your bank statement.
Which was better for you?
Did you pick the best option?

Just by being on this site shows that we are more aware of our finances than the average person, and therefore more inclined to pick the better option.
But if you picked the worse option, it should show you how easy it is to be swayed by media/public opinion.

Our opinions on here are swayed by our personal circumstances, if someone has a large mortgage and no savings, then they will be happy with the cut, regardless of its effect on the general economy.
And the reverse is true as well, if a person has no mortgage and lots of savings, then they will be upset.
As the first scenario is more common in todays society, the general consensus will be that the cut is a good thing.

I, personally, am happy with the cut.
Due to the new tax laws and rising costs of living, I am now £38 a month worse off than this time last year.
I have no way to cut costs as I'm at the bottom of the foodchain workwise, have no kids or any way of claiming back benefits or tax breaks.
Any small reduction in my outgoings is welcome.

adr0ck

Paul_N wrote: »

What I'm saying is a saving of £7.50 per week should not matter much to someone who so willingly borrowed £200,000 of someone elses money.

i see what your saying

but you can not judge everyone with such a broad brush

peoples circumstances change

get sick
lose job
have children
sick relative

etc etc

Badger_Lady

Personally, I'm doing quite well.

My tracker rate mortgage has already dropped by £40 a month, and will drop again as a result of today's change. I also took out the 5-yr deal just before the UK "crunch", so I don't need to worry about it ending any time soon.

I'm a few hundred pounds a year better off as a result of income tax changes. I've been awarded a good payrise at work, and my bonus is due this Friday.

I live in an area where house prices are standing up very strongly to the national slump, with a reported 7% local rise over the last quarter. I'm also renting out rooms, which pays for my mortgage/council tax.

I don't eat bread or milk, and I haven't noticed any significant increase in my spinach and tofu. I run to work and catch the train to England, so fuel duty doesn't have any great impact (although I do drive occasionally).

This post may be self-indulgent, but I hope it shows that, although we are looking at an environment for potentially poor national economy, there are still good news stories on an individual level. The media sometimes makes it sound as though we should all run for the hills, and people less financial savvy than us MSErs will do so without assessing their own circumstances.

Self-perpetuating in the end, sadly!

adr0ck

Al_Mac wrote: »

On a website, such as this, that is all you can do. I'd say Paul's view is reasonably fair.

would you like my bank account details or paypal details?

chinatown_2

Paul_N wrote: »

What I'm saying is a saving of £7.50 per week should not matter much to someone who so willingly borrowed £200,000 of someone elses money.

For your info our mortgage is almost half of that amount. And the last cut of 0.25% cut it by £30 and we've been told it will be the same again. And £7.50 a week does matter to some people! And whilst youre ranting on about people 'so willingly borrowing other peoples money' how many people do you know who actually own their homes outright? Im guessing only a few. Majority of people who have a mortgage be it a new one or one with only a year left to go, are still 'borrowing' other peoples money!

Gorgeous_George

This helps all homebuyers and renters alike.

Houses will be cheaper because of the credit crunch and all homebuyers, now and in the near future will enjoy lower mortgages as a result of today's cut. Landlords' cost will be curbed and the upward pressure on rents eased if mortgage rates are lower.

GG

izzybusy23

Dan: wrote: »

Is that because you cant afford to buy a house of your own?


Why do you always comment that someone is a newbie member if their view is different to yours?

OMG you saddo / weirdo (can't deceide which one you are yet), are you stalking my posts? :eek:

izzybusy23

adr0ck wrote: »

just buy cheaper bread izzy

cost 50p

therefore saving 65p a time

Where is this cheap bread then? Is it full of cr&p and no goodness? If so then I ain't interested!! :rolleyes: Only Hovis wholemeal for me. When I started buying it a few years ago it was about 80p.

Markyt

Gorgeous_George wrote: »

all homebuyers, now and in the near future will enjoy lower mortgages as a result of today's cut.

How? There are already rate increases scheduled for today and tomorrow. Lenders no longer follow the base rate when setting margins.