IMF want UK interest rates to drop to 0%

[Chicken Runner61]

Cheaper Mortgage repayments for some?

Loan fees instead of interest ?

 

[Triggaaar]

Loan fees instead of interest ?

Regardless of the base rate, lenders can still charge whatever interest rate they like.

 

[glasfryn]

maybe if we can have our 10billion back we could fund all this

 

[Uncle Spielberg]

Regardless of the base rate, lenders can still charge whatever interest rate they like.

Not if you are on a tracker rate. Could we become a Japan ? They had negative interest rates of - 0.25% for a while as a decentive to hold any savings and spend. This meant if you had £ 50k in an account you would be charged to keep it there.

 

[Triggaaar]

Not if you are on a tracker rate.

No, they can charge whatever they like on a new tracker too. Nothing to stop them charging 1000% over base. The OP said Loan fees instead of interest, so that's referring to a loan/mortgage that's not set-up yet.

 

[CorgiRegisteredFriend]

No, they can charge whatever they like on a new tracker too. Nothing to stop them charging 1000% over base. The OP said Loan fees instead of interest, so that's referring to a loan/mortgage that's not set-up yet.

I am one of the lucky ones that has a mortgage with Nationwide taken out five years ago. Rate cannot be more than 2% above base rate. This promise has been removed from new mortgages. Think Cheltenham and Gloucester is the only other one that had this clause.

 

[Cian]

Were there not a few people who managed to get negative trackers, seem to remember -0.25% on BOE base rate being one deal available for very low (>50%) loan-to-value? Will they have to be paid interest on the mortgage capital they owe?

 

[Triggaaar]

I am one of the lucky ones that has a mortgage with Nationwide taken out five years ago. Rate cannot be more than 2% above base rate.

I'm also very lucky to have a tracker, a couple over base.

Were there not a few people who managed to get negative trackers, seem to remember -0.25% on BOE base rate being one deal available for very low (>50%) loan-to-value? Will they have to be paid interest on the mortgage capital they owe?

The mortgage will almost certainly have clauses in it to stop that happening.

 

[Cian]

The mortgage will almost certainly have clauses in it to stop that happening.

You'd hope so, for the banks sake. One of the foreign-owned (Danish) banks here used to claim that they'd got a floor clause of 2% until they realised that it had somehow not actually gone in to most contracts.

My brother is on a +0.45% with them so is currently paying 1.45%, due to that. Oops.

 

[Uncle Spielberg]

No, they can charge whatever they like on a new tracker too. Nothing to stop them charging 1000% over base. The OP said Loan fees instead of interest, so that's referring to a loan/mortgage that's not set-up yet.

They cannot change the terms of the tracker once the mortgage has been set up so everyone already on a tracker rate would benefit.

 

[Uncle Spielberg]

Were there not a few people who managed to get negative trackers, seem to remember -0.25% on BOE base rate being one deal available for very low (>50%) loan-to-value? Will they have to be paid interest on the mortgage capital they owe?

Subject to a minimum rate of 0.1%.

 

[Triggaaar]

They cannot change the terms of the tracker once the mortgage has been set up so everyone already on a tracker rate would benefit.

Obviously. No one said otherwise.

 

[Uncle Spielberg]

You are right if BBR falls to 0% the lenders will up their margins so anyone thinking about getting a new mortgage on a tracker best to crack on with it imo.

 

[Weststander]

Luckily (so far), our rate is set at 0.36% above BoE for the mortgage life, which is another 20 years odd.

It was only meant to be a stop gap before fixing, but we ignored the advice to fix later on.

 

[Uncle Spielberg]

I have quite a few clients on BBR plus 0.49% for term. One has saved £ 40000 in interest payments from the rate when he took it out in 2008.

 

[Uncle Spielberg]

Luckily (so far), our rate is set at 0.36% above BoE for the mortgage life, which is another 20 years odd.

It was only meant to be a stop gap before fixing, but we ignored the advice to fix later on.

Happy days.

 

[Weststander]

Happy days.

Thanks. Hopefully you've done well too, or have no mortgage at all!

 

[Uncle Spielberg]

Thanks. Hopefully you've done well too, or have no mortgage at all!

I have one guy who got a £ 1m mortgage and is paying 0.99% for term now after paying 0.1% for 2 years , he has saved around £ 100 000 in mortgage payments so far from the 5.5% BBR when I arranged it for him in 2008.

 

[DT Withdean]

Nice to see an intelligent thread, with no bitching initiated by the inhouse troll Kraay.

 

[Uncle Spielberg]

Nice to see an intelligent thread, with no bitching initiated by the inhouse troll Kraay.

I couldn't possibly comment on that !