Rates cut to 0.5%
Discussion
Looking forward to June when i pop onto a tracker of 1.99 above the BOE base rate, down from my 5.95% Fixed I have now.
I'll be piling the excess into savings and over paying when I have a decent lump sum. I'd rather have it at my disposal if anything untoward should happen, hence not just automatically paying into the mortgage every month.
I'll be piling the excess into savings and over paying when I have a decent lump sum. I'd rather have it at my disposal if anything untoward should happen, hence not just automatically paying into the mortgage every month.
Andy Zarse said:
Racingdude009 said:
Or savers withdraw money to spend it on cars, holidays, house improvements ect.
Also people borrowing to do the same result economy comes out of recession.
Do you think it's a good thing for society generally if everyone disposes of their savings to spend on cars, holidays etc?Also people borrowing to do the same result economy comes out of recession.
pimpin gimp said:
Looking forward to June when i pop onto a tracker of 1.99 above the BOE base rate, down from my 5.95% Fixed I have now.
I'll be piling the excess into savings and over paying when I have a decent lump sum. I'd rather have it at my disposal if anything untoward should happen, hence not just automatically paying into the mortgage every month.
You're not worried about QE then?I'll be piling the excess into savings and over paying when I have a decent lump sum. I'd rather have it at my disposal if anything untoward should happen, hence not just automatically paying into the mortgage every month.
leeb said:
Oh the joy of mortgage dilemmas!
Same here! Fixed is up in May, so do I get into something I can overpay and then hammer the capital while rates are so low, or take a new fixed rate and squirrel away the savings even though I'll get bugger all return? I've also worked out I can remortgage over 15 years instead of 20 and STILL be £130 under my current repayment. Too many options.hornet said:
leeb said:
Oh the joy of mortgage dilemmas!
Same here! Fixed is up in May, so do I get into something I can overpay and then hammer the capital while rates are so low, or take a new fixed rate and squirrel away the savings even though I'll get bugger all return? I've also worked out I can remortgage over 15 years instead of 20 and STILL be £130 under my current repayment. Too many options.Nobaccymaccy said:
sniff diesel said:
UncappedTag said:
Pointless for me as I'm already on Nationwides floor of 2.5%
Is that for "new customers only"?So glad my big mean old bank has passed on the full cut, now paying 0.99%
Nationwide said:
Tracker Products - Existing customers
Tracker Mortgages reserved since 1 December 2008
Tracker mortgages reserved since 1 December 2008 have a lower limit or 'floor'* of 1%
Existing customers with tracker products with a 1% floor will benefit from the full 0.50% cut to their rate effective from 1 March 2009.
Tracker Mortgages reserved between 1 December 2004 and 6 November 2008
Tracker mortgages reserved between 1 December 2004 and 6 November 2008 have a lower limit or 'floor' of 2.75%. In January this year, Nationwide took a decision to apply this floor at 2% as a temporary concession
There will be no change to interest rates for existing customers with tracker products with a floor being applied at 2% whose payments will remain the same as at 1 January 2009 until the base rate rises back above 2%. For more information on this, please refer to our January 2009
Tracker Mortgages reserved since 1 December 2008
Tracker mortgages reserved since 1 December 2008 have a lower limit or 'floor'* of 1%
Existing customers with tracker products with a 1% floor will benefit from the full 0.50% cut to their rate effective from 1 March 2009.
Tracker Mortgages reserved between 1 December 2004 and 6 November 2008
Tracker mortgages reserved between 1 December 2004 and 6 November 2008 have a lower limit or 'floor' of 2.75%. In January this year, Nationwide took a decision to apply this floor at 2% as a temporary concession
There will be no change to interest rates for existing customers with tracker products with a floor being applied at 2% whose payments will remain the same as at 1 January 2009 until the base rate rises back above 2%. For more information on this, please refer to our January 2009
Can anyone recommend good commercial mortgage lender with tracking rates? I fall into the £5m+ mortgage territory and have a minimum rate in place I am argueing about with my mortgage company as they are not passing on base rate cuts as per government incentives/policies.
Also am curious what their maximum loan to value is as % as there have been drastic changes in this sector recently (and even shockingly increases in certain places for hotel/elderly home sectors)
Also am curious what their maximum loan to value is as % as there have been drastic changes in this sector recently (and even shockingly increases in certain places for hotel/elderly home sectors)
Gulzar said:
Can anyone recommend good commercial mortgage lender with tracking rates? I fall into the £5m+ mortgage territory and have a minimum rate in place I am argueing about with my mortgage company as they are not passing on base rate cuts as per government incentives/policies.
Also am curious what their maximum loan to value is as % as there have been drastic changes in this sector recently (and even shockingly increases in certain places for hotel/elderly home sectors)
Drop me a pm, and I can have a look for you, got a couple of smaller commercial deals going on at the moment. Also am curious what their maximum loan to value is as % as there have been drastic changes in this sector recently (and even shockingly increases in certain places for hotel/elderly home sectors)
I'm intrigued that they cut the rate so much - halving it seems very desperate. It would be incredible if it were halved from 6% to 3%, for instance.
Don't understand why you'd overpay your mortgage currently; if you're on a tracker, you're not paying a lot of interest on it (I was paying under 0.64$ before this cut, so it'll be almost interest-free if Halifax don't impose the collar). You won't get it back from the bank if you need it, but you can always overpay a lump in future if you want (or if a disparity between savings and mortgage rates reappears).
Don't understand why you'd overpay your mortgage currently; if you're on a tracker, you're not paying a lot of interest on it (I was paying under 0.64$ before this cut, so it'll be almost interest-free if Halifax don't impose the collar). You won't get it back from the bank if you need it, but you can always overpay a lump in future if you want (or if a disparity between savings and mortgage rates reappears).
SJobson said:
Don't understand why you'd overpay your mortgage currently; if you're on a tracker, you're not paying a lot of interest on it (I was paying under 0.64$ before this cut, so it'll be almost interest-free if Halifax don't impose the collar). You won't get it back from the bank if you need it, but you can always overpay a lump in future if you want (or if a disparity between savings and mortgage rates reappears).
Taking the opportunity now to pay off the capital so that when rates go back up it'll be manageable on a monthly basis. Kinda like the bank paying part of the capital off for you instead of taking it all in interest. Yay, nearly free house!
But in view of the number of people paying interest only on mortgages, for instance, I'm not sure what your point is?jshell said:
Taking the opportunity now to pay off the capital so that when rates go back up it'll be manageable on a monthly basis. Kinda like the bank paying part of the capital off for you instead of taking it all in interest. Yay, nearly free house!
But if you put the overpayments into a separate account, you'd not lose anything (assuming you ultimately used it to pay down your mortgage), but in the worst case (losing your job because the company you work for goes bust, for instance, meaning you may get no redundancy pay), you have access to the capital. You don't have to go begging to the bank for a repayment holiday; you can deal with it on your own terms.Edited by SJobson on Thursday 5th March 14:56
SJobson said:
jshell said:
Taking the opportunity now to pay off the capital so that when rates go back up it'll be manageable on a monthly basis. Kinda like the bank paying part of the capital off for you instead of taking it all in interest. Yay, nearly free house!
But if you put the overpayments into a separate account, you'd not lose anything (assuming you ultimately used it to pay down your mortgage), but in the worst case (losing your job because the company you work for goes bust, for instance, meaning you may get no redundancy pay), you have access to the capital. You don't have to go begging to the bank for a repayment holiday; you can deal with it on your own terms.jshell said:
You're absolutely correct, and I do have 2 offset accounts. But, I know me! So, I have to lock the cash in lest I blow it all on something with very low mpg....
scotal said:
ipitythefool said:
How many people do you think are now borrowing irresponsibly? You need at least a 20%-25% deposit to get a mortgage. Is that irresponsible?
Oh no you don't. You currently need 10%, and that will be cut when NR relaunch 95% products. Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff