Base Rate Decision 8th May 2008 - BoE HOLDS base rate at 5.00%

minimike2

As above!

No shock really..

rdsmortgageman

Probably thinking that there is no point reducing it any further when the lenders aren't passing on the saving.

minimike2

Yup, and the fact that inflation is showing signs of getting out of control...

grogdog

i think the government are going to be more forceful with these lenders as alot of them are just using this "credit crisis" as an excuse to charge more on rates and fees when there really isnt any need.

MortgageMamma

I cant believe the government pumped all that money in for them without laying down some t&c's about what the lenders have to do in return.

There was a meeting between the BOE/Prime Minister/Lenders the other week

Government "ok lenders, we are not seeing you pass any of this money we've given you onto consumers, and we'd like to see that happening"

Lenders "no"

Government "ok then, how much more money do you need next week?"

Its an absolute debacle, the whole thing. And then we have the FSA not preventing lenders from bribing consumers to enter into non advised direct deals where they have no recourse if its the wrong product.

The FSA are a national disgrace who incidentally have seen fit to give their staff bonuses to the tune of £14m this year, the lenders are getting away with murder and putting their short term gains before the health of the whole economy, and their behaviour alone is enough to trigger a property crash, and the government, well, they need to do some governing really don't they?

Here endeth my frustrated daily rant!

mpsavuk

grogdog wrote: »

i think the government are going to be more forceful with these lenders as alot of them are just using this "credit crisis" as an excuse to charge more on rates and fees when there really isnt any need.

Dream on. Theres nothing the Government can do about it. They can't force people to lend at cheaper rates. If they did try then investors would flee the UK economy in droves.

The truth is these Banks are using the credit crises to re-capitalise after all the losses they have taken on mortgage backed securities etc.

And, yes, there is a need because technically a lot of them are.....bankrupt!

minimike2

MortgageMamma hit the nail on the head there I think.

Its just more signs that its the banks that run the country and dictate the state of the economy, not the government / MPC.

MortgageMamma

mpsavuk wrote: »

Dream on. Theres nothing the Government can do about it. They can't force people to lend at cheaper rates. If they did try then investors would flee the UK economy in droves.

The truth is these Banks are using the credit crises to re-capitalise after all the losses they have taken on mortgage backed securities etc.

And, yes, there is a need because technically a lot of them are.....bankrupt!

Your avatar drives me mad. Yes there is sense in what you are saying, but you have to ask yourself, do the directors of these banks really need six figure annual bonuses and how many million pounds worth of NET profit do they really have to achieve every year?

There is true poverty and financial crisis and then there is the perceived poverty that these institutions are "feeling"

Conrad

In the past borrowing was underpriced due to the volume of lenders vying for business.

This is the new norm I'm afraid with rates priced to deliver a decent profit and priced for risk.

MortgageMamma

how do yu feel about the dual pricing conrad?

posh*spice

grogdog wrote: »

i think the government are going to be more forceful with these lenders as alot of them are just using this "credit crisis" as an excuse to charge more on rates and fees when there really isnt any need.

Hi

That's an interesting view point. I heard someone else on here say that because NR are gone this has allowed banks & BSs to behave in a less competitive fashion. Do you think that's true? Has it been the same in the US does anyone know. Have they passed on interest rate cuts? Just interested.