aftershavedave
Well-known member
that is all !
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interest rates down to 3%
- Thread starter aftershavedave
- Start date
Gritt23
New member
Really?
Wow.
Wow.
cjd
Well-known member
Happy days........yayyyyyyyyyyyyyyyyyyyyyy......!!!
aftershavedave
Well-known member
- Thread starter
- #4
that is a huge cut. a full 1% more than expected, and even 0.5% more than industrialists were calling for. a sign of really troubled times!
Gritt23
New member
That is incredible.
Will it get reflected in mortgage rates though? and not much fun if you are a saver!
f*** that. Happy days indeed. I have a tracker mortgate and don't really give a f*** that you will get f*** all interest on your redundancy!!!
aftershavedave
Well-known member
- Thread starter
- #10
variable rate schemes will now be under the treasury microscope to see if this rate cut is passed on, especially from those banks with part-government ownership. there really isn't a lot the government can do though unless the base rate cut means a similar fall in LIBOR, which has been happening recently.
those with base rate trackers can certainly celebrate, just a little, but check the small print in your policies, banks typically track their own base rate (eg the barclays bank base rate) which are very opaquely, if at all, defined.....
My fixed rate ends next month, so looking for a new deal right now. GOOD news.
Although I think several lenders increased their new tracker rates yesterday, in anticipation of the base rate drop
Gritt23
New member
Couple of weak arguments there HB&B.
Pass on to borrowers. Yes they will. perhaps not the full 1.5% cut, but the government will put excessive pressure on them to do so, and now that the Government have the banks by the balls courtesy of lending capital liquidity, and owning big chunks of their share capital, then I can't really see that the banks could fight it for very long.
Pass it on to savers. Of course they will, why wouldn't they? the price of money has dropped, so the value the banks put on savers deposits must drop with it. However, savings rates are reasonably bouyant and will continue to be so (although will obviously cut on the back of this) because what the banks need right now, and have done for a few months, is CASH!!! So they are trying to encourage savers, not discourage them.
cjd
Well-known member
Listen tosser............people who have existing tracker mortgages will feel an enormous benefit and hopefully will not fear the need to spend SOME money........thereby keeping the economy going.........and most importantly..........LESS PEOPLE LOSING THEIR JOBS....!
countrygull
Active member
As I understand it, a tracker rate is what the name says: it tracks the base rate. A number of banks are scrapping their tracker rate schemes - but I'm not sure how you can increase your tracker rate and still call it a tracker rate?
they increase the basis points above the base rate from say 70bp to 150bp for new customers
easy
cjd
Well-known member
For those seeking new tracker rate mortgages, the banks may well increase the difference between the base rate and their tracker rates..........typically, these used to be 1-1.5% above base rates...........they will probably increase new "Tracker rates" to about 1.5-2.0% above base rates.........so it will still follow the BoE base rate.
Gritt23
New member
Well, something needed to be done because following the problems in the sub-prime lending market in America and the run on Northern Rock in the UK, uncertainty has now hit Japan.
In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches. Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song, Shares in Kamikaze Bank were suspended after they nose-dived. While Samurai Bank is soldiering on following sharp cutbacks, Ninja Bank is reported to have taken a hit, but they remain in the black.
Furthermore, 500 staff at Karate Bank got the chop Analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.
In the last 7 days Origami Bank has folded, Sumo Bank has gone belly up and Bonsai Bank announced plans to cut some of its branches. Yesterday, it was announced that Karaoke Bank is up for sale and will likely go for a song, Shares in Kamikaze Bank were suspended after they nose-dived. While Samurai Bank is soldiering on following sharp cutbacks, Ninja Bank is reported to have taken a hit, but they remain in the black.
Furthermore, 500 staff at Karate Bank got the chop Analysts report that there is something fishy going on at Sushi Bank where it is feared that staff may get a raw deal.
aftershavedave
Well-known member
- Thread starter
- #20
they track the base rate, by a margin. for example, a tracker +0.2% tracks the base rate by being 0.2% above it at all times. what banks will do is increase this margin and pull this type of product, if they can.