BoE to back funding for High St Banks?

jammie*dodger

Just watching BBC News 24 and they have a story saying that the Bank of England is looking to inject bonds into the banking sector so that they can lend more easily and at better rates than they currently are. Does anyone know more details?

Rob.

Edit: more info here http://news.bbc.co.uk/1/hi/business/7351073.stm

minimike2

Finally they realise that cutting base rate will not help.

They should have been looking at doing this months ago. Could have avoided the situation we currently find ourselves in.

jonnypb

do people think the mortgage rates will come down in the next few months in light of this news?

foreversummer

Yep, if it works.

No, if it doesn't!

Don't think it has ever been done before, or has it?

Foreversummer

mpg

AArrgh

What the heck do I do now I need to say yes to a mortgage switch today for 5 yrs at 5.69 with Rbs £699 arrangment fee

lic

jonnypb wrote: »

do people think the mortgage rates will come down in the next few months in light of this news?

Sadly not. Unfortunately it seems it may be to little too late, with Ethel Austin and JJB both going to the wall this week, I wonder how many others will follow. I hope not too many.
As for mortage rates, Halifax have just put theirs up! What GB fails to understand is that although he might have a big say in what the BofE does, he has no say for the banks. Their loyalty it to themselves and share holders, why would they care about us?

mdj1

LOL, the banks are NOT going to bring down their interest rates! All Gordon wants to do and he has already stated it on national television is UNDERPIN the house prices. MAJOR FLAW! all the governement have done is pushed overpriced houses for years, why? Because the higher the price of a house the more money they make. They will do all they can to keep it underpinned, but all they are doing is prolonging the enevitable.

mpg

lic wrote: »

Sadly not. Unfortunately it seems it may be to little too late, with Ethel Austin and JJB both going to the wall this week, I wonder how many others will follow. I hope not too many.
As for mortage rates, Halifax have just put theirs up! What GB fails to understand is that although he might have a big say in what the BofE does, he has no say for the banks. Their loyalty it to themselves and share holders, why would they care about us?

BofE lowered rate and RBS put theirs up same day so I see your point I'd be gutted If they Dropped to 4.5% whilst i'm paying 5.69% Thats a fair whack on a 123k mortgage

lic

mpg wrote: »

AArrgh

What the heck do I do now I need to say yes to a mortgage switch today for 5 yrs at 5.69 with Rbs £699 arrangment fee

I'd take the deal! 5.69% is a good rate over 5 years, I take it it is a fixes rate?

mpg

lic wrote: »

I'd take the deal! 5.69% is a good rate over 5 years, I take it it is a fixes rate?

Yeah its fixed If I dont take it today it goes way over 6%

Oh better get teeth ready for the bullet

brummybloke

dont know why the government doesnt have its own 'lending' so to speak?.

rates for the public to borrow without the open market hiking up the interest rates.

obviously not a flawless idea, however it would provide security if there were insurances like when people purchase social housing ( cant sell straight away and so on).

just think, the government would also get lots of tax for the same thing, tax you on the purchase, the borrowing and the paying back.

it would also force the money market to become more competitive rather than keeping any decent deals to themselves and joe public paying for it.

as they pretty much 'own' northern rock anyway, i wouldnt have thought it would be overly difficult to do, it may also make some of the snivel servants who do little, work as there would be something for them to do.