Bank Of England Cuts Rates

[S.D.]

The Bank of England's rate-setting committee has cut interest rates to 5.25%from 5.5% in an attempt to stimulate growth in the UK economy.

:cheer:

[S.D.]

BBC:

The Bank of England's rate-setting committee has cut interest rates to 5.25%from 5.5% in an attempt to stimulate growth in the UK economy.

This follow recent rate cuts by the US Federal Reserve, which sliced rates from 4.25% to 3.0% amid fears of the widening impact of the credit crunch.

Many analysts expect more UK cuts this year, but say inflation fears will stop the UK cutting rates as much as the US.

The Bank said in January that the risk of inflation had "worsened markedly".

While the most recent UK inflation data showed that national consumer price inflation remained at 2.1% for the third month in a row in December, energy prices have increased substantially since then.

The rate decision came shortly after E.On became the fifth major power company to raise gas and electricity prices this year.

[NumptyNuts]

the people who under right and lend us lot cash are not going to pass the savings on - this cut is to help the bloody banks who are borrowing from the BOE.

[Geezer]

the people who under right and lend us lot cash are not going to pass the savings on - this cut is to help the bloody banks who are borrowing from the BOE.

This won't affect all you council scum anyway

[S.D.]

the people who under right and lend us lot cash are not going to pass the savings on - this cut is to help the bloody banks who are borrowing from the BOE.

Depends on what type of Mortgage you have, *if* you have a BOE base rate tracker then you will get the whole benefit (0.25% reduction) however, if you have a SVR (Standard variable rate) then you *might* not get the full benefit this will depend entirely on your lender.

:)

[SGS]

I bet us savers feel a cut pdq as per usual.

[NumptyNuts]

Depends on what type of Mortgage you have, *if* you have a BOE base rate tracker then you will get the whole benefit (0.25% reduction) however, if you have a SVR (Standard variable rate) then you *might* not get the full benefit this will depend entirely on your lender.

:)

thats is IF the banks pass it on which they will not, werll at best maybe a slice of it.

Have two morgages here -

One is Base Rate the other is fixed for 10 years :)

[S.D.]

thats is IF the banks pass it on which they will not, werll at best maybe a slice of it.

Have two morgages here -

One is Base Rate the other is fixed for 10 years :)

What ?

If you've got a BOE tracker then that's what you got & you'll track the rate up & down(The clue's in the name) if you haven't then it will entirely depend on how greedy or otherwise your individual lender is.

[S.D.]

......

Have two morgages here -

One is Base Rate the other is fixed for 10 years :)

What do you mean "Base Rate" ? is it a true BOE tracker or not ? or is it a SVR tracker (There's a difference, check the small print of your mortgage very carefully)

Concerning your 10 year fixed, I'm curious, when did you take that out ? what rate did you fix at & is it portable ?

(No worries if you don't want to answer me, tis indeed your business)

:)

[NumptyNuts]

No one is 'BASE RATE' > Reason one is in this format is so I have no contract and can sell, pay off or move with just 30 days notice :)

[S.D.]

No one is 'BASE RATE' > Reason one is in this format is so I have no contract and can sell, pay off or move with just 30 days notice :)

Mine track the BOE base rate, so do many others, likewise some track a lenders SVR which means you wont neccasarily get the full benefit (or disadvantage for that matter) whenever the BOE alters it's rate.

I used to have a L.I.B.O.R. tracker (Thats a "London Interbank Offered Rate") but that's a whole new conversation & I'm a bit tired, anyway, hope your lender passes on the full reduction in due course matey :)

[nekrom]

And down here our interest rates are going through the roof due to inflation. The average variable home loan rate is now 9.02%. :)

-N

[Nottslad]

You're lucky Nekrom, here it's 15%. I refuse to borrow money at that rate, so we're stuck renting until I can afford to buy a place outright.

[Rosie]

Three point something here (Not that I understand a word of it. I just spend until our bank calls and asks me to stop overheating the Danish economy)

[nekrom]

You're lucky Nekrom, here it's 15%. I refuse to borrow money at that rate, so we're stuck renting until I can afford to buy a place outright.

Compared to a few places we're lucky yes, but we are a very expensive place to live these days. My mortgage 3years ago was only 5.25% to put things into perspective. :)

-N