Interest Rate Cut

[vetteheadracer]

BoE has cut the base rate by 0.25% today so it now stands at 4.5%.

http://www.sky.com/skynews/article/0,,30000-13400606,00.html

First bit of good news this week :)

[CupraR]

Will save a few quid on the mortgage.

[ZR1cliff]

And my cards

[neil.b]

Interest rates need raising not cutting.

Country's economy is propped up by debt and this is only going to get people back into high-street shops, spending money they don't have.

Just seen some estate agent fool on TV, rejoicing at the news saying it's long overdue and necessary to get the life back into the property market.

You what?! You mean the property market that has the average house price being more than 6 times the average wage?

[anniesdad]

Great stuff!

[BliarOut]

Bugger.

[CupraR]

neil.b said:

Interest rates need raising not cutting. Country's economy is propped up by debt and this is only going to get people back into high-street shops, spending money they don't have. Just seen some estate agent fool on TV, rejoicing at the news saying it's long overdue and necessary to get the life back into the property market. You what?! You mean the property market that has the average house price being more than 6 times the average wage?

An interest rate rise will not cut house prices. It may slow the rise down but in the end house prices will always go up.

I'm very happy about this cut, it makes me personally better off.

[JagLover]

BliarOut said:

Bugger.

My sentiments exactly

I need property prices to fall in order to afford to buy anywhere.

[BliarOut]

JagLover said:

BliarOut said: Bugger. My sentiments exactly I need property prices to fall in order to afford to buy anywhere.

I need interest rates to rise because I'm greedy

[tvrbob]

BliarOut said:

JagLover said: BliarOut said: Bugger. My sentiments exactly I need property prices to fall in order to afford to buy anywhere. I need interest rates to rise because I'm greedy

Me too. Just been chatting with my FA this morning and things are looking grim. I'll have to start my own loan shark company. Money just ain't worth the paper it's written on these days.

[cotty]

CupraR said:

Will save a few quid on the mortgage.

They say it will save about £12 a month on a £80,000 motgage. So I think I will save about £6 a month

[targarama]

neil.b said:

Interest rates need raising not cutting. Country's economy is propped up by debt and this is only going to get people back into high-street shops, spending money they don't have. Just seen some estate agent fool on TV, rejoicing at the news saying it's long overdue and necessary to get the life back into the property market. You what?! You mean the property market that has the average house price being more than 6 times the average wage?

What the estate agent means is it will get more punters through his doors/books/get him into another new car.

I think rates are about right now, but if you look at the US and Europe we're still a bit high in comparison, we need to keep stimulating business in the UK until the euro rate climbs up a bit at least.

Meanwhile we save a shedload of cash as we're flexible on our house and our rental. Anyone with rental property will be pleased about the rate drop.

[B17NNS]

neil.b said:

this is only going to get people back into high-street shops, spending money they don't have.

if nobody spends money, retailers dont need staff.

if rates were to rise unemployment would follow.

ask any retailer (or any business) what its like at the moment

[rich1231]

About time. Isnt going to make much difference to house sales/prices though.

Problem is the market only has to be stagnant till April, they watch the property market go weird as SIPPS start to poor money in.

[JonRB]

I almost started a thread on this when it was announced (ie. before this thread was started), but I didn't bother because I just knew what the responses would be.

1) Those with large mortgages (like me) would say "thank - a little breathing space"
2) The usual shower of holier-than-thou, I'm-alright-jack posters would dive in with how it should be higher, how their considerable savings will be affected / how people with big mortgages deserve to be be thrown out on the street / how this is bad news because it means house prices will go up (and they won't be able to buy the house they want) / whatever.

It's just so predictable.

[clubsport]

Rich, what do you mean by "go weird" ..rather than go higher?

[Incorrigible]

JonRB said:

It's just so predictable.

I was going to start a thread about how I expect JonRB would react to the interest rate change and what his perception would be of other PHers views

But I didn't bother with that either

[JonRB]

Sod the lot of you.

[I'm Alright Jack]

JonRB said:

I almost started a thread on this when it was announced (ie. before this thread was started), but I didn't bother because I just knew what the responses would be. 1) Those with large mortgages (like me) would say "thank - a little breathing space" 2) The usual shower of holier-than-thou, I'm-alright-jack posters would dive in with how it should be higher, how their considerable savings will be affected / how people with big mortgages deserve to be be thrown out on the street / how this is bad news because it means house prices will go up (and they won't be able to buy the house they want) / whatever. It's just so predictable.

Haven't you considered my savings

[srebbe64]

JonRB said:

Sod the lot of you.

It's a right pain in the neck. I've got no mortgage but the interest on my savings will be adversely effected! As for those idiots with huge mortgages, they shouldn't be so stupid in the first place! I suppose one option is to invest money into property because there could well be a capital gain if property prices recover!