Debate House Prices
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House Builders Call for 0.5% Cut In Interest Rates

adr0ck
Posts: 2,374 Forumite

Don't fancy their chances
http://www.building.co.uk/story.asp?sectioncode=284&storycode=3115136&c=2
Even if interest rates were cut by 0.5% would this actually affect new mortgage rates?
if not whats the point?
http://www.building.co.uk/story.asp?sectioncode=284&storycode=3115136&c=2
Even if interest rates were cut by 0.5% would this actually affect new mortgage rates?
if not whats the point?

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Comments
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stage 3: Bargaining
I agree with adrock though, it's very unlikely the rate cuts would be passed onto borrowers, but they would certainly be passed onto savers.It's a health benefit ...0 -
Lol:rotfl::rotfl:. I think the last thing the economy needs at the moment is a rate cut! It would finish us of.:o:eek:Turn your face to the sun and the shadows fall behind you.0
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05% cut? With the silly levels of inflation at the moment (plus savings) im calling for a 2% rise..........0
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This country should follow the world leaders and cut by at least 1% that way pain can be avoided with poor unfortunate OO being able to repay their mortgages and still have a life.
Go for it GB you know it is the right way to go.0 -
stage 3: Bargaining
I agree with adrock though, it's very unlikely the rate cuts would be passed onto borrowers, but they would certainly be passed onto savers.0 -
pickles110564 wrote: »To right, it is down to savers why we are in such a mess, they should be out there spending thus helping all the small business in trouble.
Our savings ratio had fallen to a dangerously low and the pension revolution had eroded the prospects of many in retirement. Too many have been wallowing in the dangerous illusion that "my house is my pension". We need to save more, not less, as life expectancy extends towards a 25 year retirement.
Why so little saved? Could it be that anyone under 40 was having to mortgage themselves to the hilt to get on the property ladder?
Don't worry, pickles. That issue is currently being addressed by the market.
Re interest rates, the OECD is properly concerned about our inflation levels. If Gordon wants to revise the Bank's inflation target higher, that is a political decision for him. The Bank of England should do its job and not drop interest rates to stimulate the economy as long as inflation remains a threat.0 -
pickles110564 wrote: »This country should follow the world leaders and cut by at least 1% that way pain can be avoided with poor unfortunate OO being able to repay their mortgages and still have a life.
Go for it GB you know it is the right way to go.
So drops in the base rate result in cheaper mortgages? News to me0 -
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Banks & BSs have rapidly raised charges and differential rates on new tracker mortgages over the last few months.0
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pickles110564 wrote: »This country should follow the world leaders and cut by at least 1% that way pain can be avoided with poor unfortunate OO being able to repay their mortgages and still have a life.
Go for it GB you know it is the right way to go.
Well your tracker mortgage may go down, but that will be offset with rampent inflation..... good times0
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