Rates cut to 0.5%

[BJWoods]

Mon Ami Mate said:

illmonkey said:

Mortgage down an other £70 a month. Whilst its not great news for everyone, its giving me a good chance to shove loads into savings.

What's the point, you won't accumulate interest. Next step will be for banks to start charging money for deposits.

uh you have some money if you need it set aside..

ie i'd rather have £10k under tha matress, earning no interest, than no £10k !!!!

I'm just happily massively overpaying my mortgage, for te same payment, over 6%, down 10 1.25% now

B
Actually it is an offset mortgage, so i can get it out again as well!!!!
B

Edited by BJWoods on Thursday 5th March 12:47

[Spiritual_Beggar]

Darth Paul said:

Puggit said:

They also announced they are printing £75bn in cash - pound is in freefall as I type...

That just reminds of the Simpsons episode when Mr Burns gives a Trillion dollars to Castro.

Mr Burns: Now give it back

Castro: Give what back.

That is a great episode

Quite appropriate for the times too.

[AlexKP]

Republik said:

mondeoman said:

Republik said:

10 whole years.

TAKE IT!

I intend to. Its with Chelsea Building Society if anyone else is interested. This was before the rate cut. I'm hoping it will go down a little bit more in the next few days.

Yes - I'd hold fire for a few days, then snap it up.

I am in a similar position - with Nationwide. I am on the SVR - waiting to see what they come up with for a long term fixed.

[hornetrider]

We're battering down the capital rather than putting the excess into savings (on a tracker obviously).

We actually rang them (Woolwich) a few months ago to ask how the rate cuts were affecting our mortgage and to change our payment. The bloke says, "Yes, we can adjust your payment down by over 400 a month", he seemed quite surprised when I told him to put it up by 500 a month!

If the absolute worst comes to the worst, the st hits the fan big time and I'm out of a job, I'm hoping we'll be so far ahead of the repayment curve that our lender will look on us sympathetically.

[rich1231]

Puggit said:

They also announced they are printing £75bn in cash - pound is in freefall as I type...

Define Freefall..

Doesnt look that way to me.

[audidoody]

illmonkey said:

Mortgage down an other £70 a month. Whilst its not great news for everyone, its giving me a good chance to shove loads into savings.

No, no, no. You're supposed to SPEND it! Buy a new Range Rover NOW (oh no you can't .. the Government says cars will kill the planet).

[jshell]

hornetrider said:

If the absolute worst comes to the worst, the st hits the fan big time and I'm out of a job, I'm hoping we'll be so far ahead of the repayment curve that our lender will look on us sympathetically.

Precisely my reasoning too!

[BJWoods]

jshell said:

hornetrider said:

If the absolute worst comes to the worst, the st hits the fan big time and I'm out of a job, I'm hoping we'll be so far ahead of the repayment curve that our lender will look on us sympathetically.

Precisely my reasoning too!

don't bet on it!

If you had an offest arrangement, you can get the benefit / and the access to it...

ie your savings account reduces payment on the mortgage.
if the worse happens you can then use your savings account to pay the monthly mortgage..

Otherwise, even if you have massively overpaid, the bank could stl say you are not making payments. etc

B

[AlexKP]

Nationwide (wh I am with) have announced they are passing the full cut on to SVR mortgage borrowers (ie me). Now down to 3%

Actually, this is all getting rather worrying - I don't want to get used to mortgages being quite this low... it can't last surely?

[scotal]

anonymous said:

[redacted]

They released new rates yesterday, nothing really sparkling.

I think they might be suffering with depositor withdrawls.

[Digga]

BJWoods said:

jshell said:

hornetrider said:

If the absolute worst comes to the worst, the st hits the fan big time and I'm out of a job, I'm hoping we'll be so far ahead of the repayment curve that our lender will look on us sympathetically.

Precisely my reasoning too!

don't bet on it!

If you had an offest arrangement, you can get the benefit / and the access to it...

ie your savings account reduces payment on the mortgage.
if the worse happens you can then use your savings account to pay the monthly mortgage..

Otherwise, even if you have massively overpaid, the bank could stl say you are not making payments. etc

B

This is also my contingency plan. We have an openplan/offset type account and we have been adopting this strategy which, as you say, since we overpaid in the 'good times' we should be allowed to underpay in the 'tough'. But banks being banks and always wanting their brolly back as soon as the rain comes...

[hoppy2008]

Scotal, any links to which lenders have passed on the cut?

Cheers

Hoppy

[jshell]

BJWoods said:

jshell said:

hornetrider said:

If the absolute worst comes to the worst, the st hits the fan big time and I'm out of a job, I'm hoping we'll be so far ahead of the repayment curve that our lender will look on us sympathetically.

Precisely my reasoning too!

don't bet on it!

If you had an offest arrangement, you can get the benefit / and the access to it...

ie your savings account reduces payment on the mortgage.
if the worse happens you can then use your savings account to pay the monthly mortgage..

Otherwise, even if you have massively overpaid, the bank could stl say you are not making payments. etc

B

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.... And, I agree with HR in that I'll be hoping the bank are, erm, 'sympathetic'....

[scotal]

anonymous said:

[redacted]

Alex, they were at 3% last month, it should be 2,5 form 01/04.

[AlexKP]

scotal said:

anonymous said:

[redacted]

Alex, they were at 3% last month, it should be 2,5 form 01/04.

Hahaha.... shows how on the ball I am....

lol.

Cheers!

[hornetrider]

jshell said:

BJWoods said:

jshell said:

hornetrider said:

If the absolute worst comes to the worst, the st hits the fan big time and I'm out of a job, I'm hoping we'll be so far ahead of the repayment curve that our lender will look on us sympathetically.

Precisely my reasoning too!

don't bet on it!

If you had an offest arrangement, you can get the benefit / and the access to it...

ie your savings account reduces payment on the mortgage.
if the worse happens you can then use your savings account to pay the monthly mortgage..

Otherwise, even if you have massively overpaid, the bank could stl say you are not making payments. etc

B

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.... And, I agree with HR in that I'll be hoping the bank are, erm, 'sympathetic'....

I used to have a one account which did precisely this, but I was too weak and spunked the excess on shiny toys! At least this way the money is gone gone gone off the capital!

[scotal]

hoppy2008 said:

Scotal, any links to which lenders have passed on the cut?

Cheers

Hoppy

Lloyds promised to. (Not sure if that applies to HBOS brands though)
Nationwide promised to.

I havent seen any others yet. I'm sure many meetings will be going on in dreary board rooms as we speak.

[scotal]

anonymous said:

[redacted]

No weorries, I was speaking to a lender staff member who couldn't remember what their SVR was last week..... welll they all change so fast .....

[Matt..]

So it looks like we as a country are again being setup for a massive fall. When interest rates rise (and they most definately will), they are likely to go up in quite a big way. So say in 5yrs time rates are at 8%, how screwed is everyone going to be?

[AlexKP]

Matt.. said:

So it looks like we as a country are again being setup for a massive fall. When interest rates rise (and they most definately will), they are likely to go up in quite a big way. So say in 5yrs time rates are at 8%, how screwed is everyone going to be?

It would probably be a national disaster quite frankly, given the size of many mortgages now...

This is why I think something will have to be done to keep rates very low for many years to come. The alternative will be half the population made homeless...