£50BN SO when will banks lower their mortgage rates

nutmegman

with all this extra cash flowing when will the banks stop funding thier bottom line with high mortgage deals

Ma77hew

I got a letter from Halifax yesterday saying that their base rate is being reduced by quarter of a percent from 1st May.

Markyt

nutmegman wrote: »

with all this extra cash flowing when will the banks stop funding thier bottom line with high mortgage deals

They won't. The two are no longer related. Note how many lenders have upped their rates since the funding deal announcement.

pepperjulie

I also received my letter from Halifax yesterday saying that my rate would go down with effect from 1st May.:T Have rounded my payments up to the nearest £50 so will be overpaying a little bit more. Not a lot I know (it's all I can afford at the moment) but it all helps in the grand scheme of things doesn't it?

epsilondraconis

They won't. If I ran a bank, I wouldn't either. There are shareholders to keep happy you know.

£50Bn - that'll pay for the bubbly at the shareholders' meeting!

Guy_Montag

I still say the banks are returning to lending based on historical criteria not overtightening. £50bn is going to do f'all.

Fred1_2

I've got a radical idea, instead of funding fat cat bank shareholders, how's this??

Savers looking for a good return could club together with people needing money to buy or build homes for themselves - owner occupiers only, not buy-to-let. With no shareholders, the difference between what the borrowers pay and the savers get can be pared to the minimum just to cover admin costs. Before anyone can borrow money, they'll have to prove themselves credit-worthy by having a proven savings record with the new organisation.

This seems such a good idea, i can't believe it hasn't already been done. I've even come up with a catchy new name for such mutual organisations, they could be called Building Societies

motch

Ma77hew wrote: »

I got a letter from Halifax yesterday saying that their base rate is being reduced by quarter of a percent from 1st May.

would that be because of the base rate drop and you have a tracker mortgage?

Ma77hew

motch wrote: »

would that be because of the base rate drop and you have a tracker mortgage?

Nope, I have a fixed mortgage, the letter was about their standard rate decreasing.

pickles110564

CBS have just past on a cut on our several BTL mortgages with them, lets hope others follow too for the OO's

baby_boomer

Fred1 wrote: »

instead of funding fat cat bank shareholders

Do you mean the poor sods with private sector pensions whose pension contributions for the last three years don't seem to have improved their pension?

Funding a private pension is starting to resemble running a marathon up a downwards escalator

They'll just have to work another three years to pay for the fat cats in the government and the civil service with their gilt edged retirement nest eggs.

And when the BBC pension scheme mirrors the former, rather than the latter, we may start to get more impartial coverage of the impact of stock market ups and downs.