Interest rate to hit 0%

[Mandat]

Allegedly, the interest rate is to be lowered to 0.25% later this year, and then eventually down to 0%.

This is from a source who works in banking.

[northandy]

Is he a member of the MPC ?

[bogie]

it dosent mean the banks have to pass it onto consumers though...they could keep more profits in their coffers instead

[Mandat]

northandy said:

Is he a member of the MPC ?

Unfortunately, I'm not that well connected.

[Mandat]

bogie said:

it dosent mean the banks have to pass it onto consumers though...they could keep more profits in their coffers instead

No but presumably those with tracker mortgages should see a reduction at least.

[whoami]

northandy said:

Is he a member of the MPC ?

[Deva Link]

Mandat said:

No but presumably those with tracker mortgages should see a reduction at least.

My colleague with a Woolwich +0.18% lifetime tracker is unbearable enough as it is!

[Sarnie]

Mandat said:

No but presumably those with tracker mortgages should see a reduction at least.

Most people who have taken out recent tracker rates may find that their products actually floor rates for this such scenario...

[eliot]

I was on a .99 egg tracker until i moved recently

[clarkey]

I'm on a first direct +0.49% tracker. It's funny, it wasn't an especially good rate when I took it out, it's been OK for the last three years or so though!!

[Deva Link]

anonymous said:

[redacted]

Woolwich had a +0.09% rate for a while and he just missed that.

He's a typical (in my experience) Southener though - when I suggested keeping up the higher payments as interest rates dropped he thought I was mad.

[marky1]

Mandat said:

Allegedly, the interest rate is to be lowered to 0.25% later this year, and then eventually down to 0%.

This is from a source who works in banking.

Pretty widely known across the market that there should be a cut, 0.25 is certainly priced into the market so very likely.

[supersport]

I came close to getting that Barclays deal at base + .33% with no arrangement or exit fees, but at the time I got base -.05% for two years (no fees) and went for that instead. Sadly the rate had a floor of 2.5% which I thought was fine at the time. They did relent a bit and let it slip to 2% and when the deal finished it reverted to 2.5%. Not moving now as you just can't get these deals without huge fees.

Don't mind too much as they do have to make some money on the deal.

[uuf361]

I've also heard about the cuts to 0%.....

I'm rather happy with my BTL Lifetime Tracker at Base +0.91% - I'm not so sure the lender is though!

[The Leaper]

Neither am I: I'm a pensioner.

R.

[northandy]

clarkey said:

I'm on a first direct +0.49% tracker. It's funny, it wasn't an especially good rate when I took it out, it's been OK for the last three years or so though!!

Im on their +0.79% lifetime tracker, it was an ok deal when i got it, has turned out to be brilliant, as kept my payments the same.

[crazy about cars]

I guess I'll be a fool to stay on a fixed rate mortgage any longer...been on it for 3+ years and paying shedloads of interests

[chris116]

Took out a five year fix in August 2007 (great timing ). Drops to 2.5% next month.

[V8A*ndy]

The Leaper said:

Neither am I: I'm a pensioner.

R.

My savings is my income and I have a tracker fixed term on an account.

I've already taken a hit from 6.75% to 2.95% from 2008. A least I should be able to get 2-2.5% because I can lock away.

But pensioners are screwed.

[raptor600]

V8A*ndy said:

But pensioners are screwed.

Only if they are stupid enough to get their income from savings accounts!