0.25% cut in BoE base rate

merlinthehappypig

poppy10 wrote: »

Most of them have already passed on the cut today - including Halifax, Nationwide, Bank of Scotland, Barclays, Britannia, Lloyds TSB, Cheltenham & Gloucester, First Direct and Woolwich.

The trouble is, they were all hiking their rates last week in anticipation of today's cut, so we've ended up back where we started,.

Partly true, but, in the case of two mortgages we have recently considered/applied for it's worse than that.

One was a two year base rate tracker at +0.89% with a £1000 fee when we applied, about 8 weeks ago. By the time we received the offer (about 5 weeks ago) it had changed to 0.69% above base rate with a £3000 fee. Two weeks ago it changed to 1.39% above base rate, still with a £3000 fee. I checked just and it is now 1.69% above base rate, with a £3000 fee.

Over the two year tracker period the true monthly cost of the loan had risen by 18%, before the base rate cut, and by 15% following yesterday's cut (assuming that the fee was added to the loan, as in most cases and the fee was repaid over the two year period by overpayment) in just 8 weeks.

That was a self cert at slightly higher rates than the high street, but not punative. The maximum LTV on that product has reduced from 80% to 75% as well.

We applied for a much smaller mortgage with a high street lender with a LTV of 15%. The 5 year fixed rate for that product has risen by 0.15% since we applied just over a week ago and I understand that it will increase again today, following the cut in the base rate.

So, whilst a number of people will benefit from the base rate cut, most won't. It's a very competitive world with mortgages right now and no bank will be doing customers any favours. It's a buyer's market for house purchases, but a lender's market for mortgages.

Forgotten in all the euphoria for mortgage holders is that savers will lose out (and there are more of these than borrowers). Once again prudence is being punished and foolishness rewarded for no other reason than a political gesture. It's nothing more than a pointless and stupid attempt to prop up house prices, on which so much of Gordon Brown's 'economic miracle' depends.

adr0ck

wheres almacs comments gone?

i take it he doesnt want to give me £350

and i thought it was so a small amount of money to him:whistle:

MissMoneypenny

adr0ck wrote: »

wheres almacs comments gone?

i take it he doesnt want to give me £350

and i thought it was so a small amount of money to him:whistle:

Perhaps £350 is a small amount to him/her, because he isn't stupid with his money - like taking on a big mortgage or giving money away?

wibble68_2

DaveyDave wrote: »

Even by the ridiculous CPI measure, inflation is 0.5% above the target of 2%. Seems like those that have saved rather than borrow will get shafted (as usual). It's far more profitable to follow the sheeple into a debt-ridden existence.... there'll be tears!.

Anybody know when this months CPI figure is out.

WTF?_2

adr0ck wrote: »

wheres almacs comments gone?

i take it he doesnt want to give me £350

and i thought it was so a small amount of money to him:whistle:

Well, If you're one of the over-indebted, squealling blindly for interest rate cuts to save your bacon, then he kind of already is giving you cash to bail you out.

(As indeed is everyone with savings or not in debt)

pickles110564

!!!!!!? wrote: »

Where will the money come from?

* We have a huge pool of freshly arrived immigrant labour from poor countries who will be quite happy to undercut Brits in any job that they can do.

What is the problem with this then? If i can get a more professional job and at a much cheaper rate surely that is what this website is all about.

* Britain no longer is a major exporter and now the balance of trade is massively towards imports, including food imports.

For once you are right, we ship out much more fresh air in metal boxes than we ever have done in the past.

* Globalisation means that you are always competing against foreign labour. We've seen a movement towards offshoring, british workers demanding higher pay is going to increase that trend. Even a weaker pound won't offset that. If a service job can be offshored, or industrial production shifted abroad to save money then it will be.

What is wrong with companys trying to increase their profits?

In short, we are about to see a very sharp correction to our standards of living. Listen carefully to political pundits on the subject of the economy in the coming year or two. More and more we are hearing the words 'falling standard of living'. This is inevitable in a world driven by globalisation and a race to the bottom. We've had the benefits in the last few years and now it's time to face the bad side.

I bet your other half must be on anti depression pills putting up with your cheery sole all the time.:rotfl:

merlinthehappypig

merlinthehappypig wrote: »

We applied for a much smaller mortgage with a high street lender with a LTV of 15%. The 5 year fixed rate for that product has risen by 0.15% since we applied just over a week ago and I understand that it will increase again today, following the cut in the base rate.

The new rates have just been released and the 5 year fixed has gone up another 0.2% so the rate has increased 0.35% since last Tuesday, despite the base rate reducing 0.25%

m00m00

I've been looking at the britannia 'flexible' mortgage figures this week

on tuesday it was BR + .75 points = 6%

today it's BR + 1.3 points = 6.3%

snarffie

m00m00 wrote: »

I've been looking at the britannia 'flexible' mortgage figures this week

on tuesday it was BR + .75 points = 6%

today it's BR + 1.3 points = 6.3%

Why don't you look at HSBC's tracker? It's 0.38% above base, and has been for a few months, I think. £600 fee. Conveyancing and valuation paid for by HSBC. No MEAF.

Or are you searching for the worst offers?

m00m00

I just picked a sample offer at random, which was a good example of the way the market is going.

the HSBC offer is br + .74 points now

yet another example of the way the market is going

I'm looking at sample FTB mortgages, not remortgages.