Debate House Prices


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House Builders Call for 0.5% Cut In Interest Rates

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? :confused:
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Comments

  • m00m00
    m00m00 Posts: 1,755 Forumite
    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 ...
  • posh*spice
    posh*spice Posts: 1,398 Forumite
    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.
  • skap7309
    skap7309 Posts: 874 Forumite
    05% cut? With the silly levels of inflation at the moment (plus savings) im calling for a 2% rise..........
  • pickles110564
    pickles110564 Posts: 2,374 Forumite
    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.
  • pickles110564
    pickles110564 Posts: 2,374 Forumite
    m00m00 wrote: »
    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.
    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.
  • baby_boomer
    baby_boomer Posts: 3,883 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    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.
    Unbelievable :rotfl: ! And I thought it was the banks' fault for lending more than they could fund.

    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.
  • MrDT
    MrDT Posts: 951 Forumite
    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 me ;)
  • pickles110564
    pickles110564 Posts: 2,374 Forumite
    MrDT wrote: »
    So drops in the base rate result in cheaper mortgages? News to me ;)
    You wont have heard of tracker mortgages then?
  • baby_boomer
    baby_boomer Posts: 3,883 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Banks & BSs have rapidly raised charges and differential rates on new tracker mortgages over the last few months.
  • steadysaver
    steadysaver Posts: 389 Forumite
    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 times
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