0% Interest Rate....!
Discussion
It will just mean they can make more margin.kambites said:
Hoppy2008 said:
For those that are on a discount rate below the BoE base rate - does that mean the lender will in fact pay them money each month?
I suspect they all have clauses in stating a minimum rate. But the C&G mortgages that were available last summer were, I think, 1.65% below. They are already paying only 1.35%.
Hoppy2008 said:
For those that are on a discount rate below the BoE base rate - does that mean the lender will in fact pay them money each month?
...yeah..but no....but...yeah... awww feck who knows. The banks'll probably just go "Sod it. We quit. When you want us try the Bahamas. Bye"Munter said:
Hoppy2008 said:
For those that are on a discount rate below the BoE base rate - does that mean the lender will in fact pay them money each month?
...yeah..but no....but...yeah... awww feck who knows. The banks'll probably just go "Sod it. We quit. When you want us try the Bahamas. Bye"
There is little value in a 0% rate, obviously US rates are lower than UK, but there is a good chance we see the US cut to 0.5% next Tuesday,,,,likely to stop there, when it is apparent that previous reductions either need to work through the economy or are unlikely to have much effect, so other methods of stimulus need to be addressed. I would be amazed to see UK rates at 1%,,,some of the larger investment banks economists are suggesting 1.5% base by Q2 2009.
Just mentioning this as an example of 0% rates actually being here in the markets.
The US fed sold $30 billion 1 month T bills at 0% yesterday...this was seriously oversubscibed as central banks and money funds were desperate to give their money to the government for nothing!...scary times!
Just mentioning this as an example of 0% rates actually being here in the markets.
The US fed sold $30 billion 1 month T bills at 0% yesterday...this was seriously oversubscibed as central banks and money funds were desperate to give their money to the government for nothing!...scary times!
mickken said:
kambites said:
Hoppy2008 said:
For those that are on a discount rate below the BoE base rate - does that mean the lender will in fact pay them money each month?
I suspect they all have clauses in stating a minimum rate. Why do Labour think their demands on the banks are reasonable?
You can't lend the banks money, in return for years of high interest repayments, then tell them to carry on lending at 2007 levels whilst drastically reducing interest to debtors and giving out reasonable interest to savers.
If you have the sh*ts at one end and don't replenish at the other you are eventually going to die.
You can't lend the banks money, in return for years of high interest repayments, then tell them to carry on lending at 2007 levels whilst drastically reducing interest to debtors and giving out reasonable interest to savers.
If you have the sh*ts at one end and don't replenish at the other you are eventually going to die.
scotal said:
mickken said:
kambites said:
Hoppy2008 said:
For those that are on a discount rate below the BoE base rate - does that mean the lender will in fact pay them money each month?
I suspect they all have clauses in stating a minimum rate. So does it mean those on discount rates will actually be paid by the banks?
Sounds absurd, I know!
Hoppy2008 said:
scotal said:
mickken said:
kambites said:
Hoppy2008 said:
For those that are on a discount rate below the BoE base rate - does that mean the lender will in fact pay them money each month?
I suspect they all have clauses in stating a minimum rate. So does it mean those on discount rates will actually be paid by the banks?
Sounds absurd, I know!
I'm guessing noone at the banks, when writing the mortgage T&C's ever considered the merest possibility of 0% rates.
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