Can anyone find any sign of the Interest Rate cut being passed onto Mortgage's?

Yesterday, virtually the entire world cut their Central Bank Rates (for us, Bank of England Base Rate) by HALF OF ONE PERCENT.

Now the last time there was a drop, my mortgage didn't go down. The bank kept the difference. Then my rate went up when there was no rise.

So can anyone find any sign of them "passing it on"

If not, we might need Jamie Oliver to get out of rotherham and get down to Thread Needle St ;)

It will happen. Give it time. Borrowing/Lending rates are normally fixed for certain periods in advance so the change will take some time to filter down to mortgage holders.

A hell of a lot of time.

A reduction in the risk free rate, dosen't mean there will be a reduction on your mortgage if the risk goes up.

Same way the option prices quoted didn't change that much (because Vol is through the roof)

Variable Tracker mortgage from nationwide, instantly applied. Handy for me ;)

Was on the phone with them yesterday actually, mortgage lady could just say an official line about new fixed rate basically saying she didn't know as yet.

Depends on the banks and the mortgage you got I suppose, some have a tendency as you found out to just hold onto that to make more cash :(

does this mean i can buy my first house ie mortgage next year and dont need more then 10% has a deposit?

I bet my saving\'s account interest got cut straight away though... :rolleyes:

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Originally Posted by j.o.s.h.1408

does this mean i can buy my first house ie mortgage next year and dont need more then 10% has a deposit?

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No, probably not.

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Originally Posted by Zak33

Yesterday, virtually the entire world cut their Central Bank Rates (for us, Bank of England Base Rate) by HALF OF ONE PERCENT.

Now the last time there was a drop, my mortgage didn't go down. The bank kept the difference. Then my rate went up when there was no rise.

So can anyone find any sign of them "passing it on"

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The Bank of Scotland, Halifax, Royal Bank of Scotland, Lloyds TSB and Barclays immediately cut their standard variable rates by half a percentage point.

If you're not on a standard variable rate then you might not see any difference. Trackers will probably fall, but not immediately.

Well guys, so far, no sign of a rate cut for my Natwest variable rate mortgage.

Anyone else had notification of the rate cut that we expected?

I had a letter from RBS in the middle of last week actually.

I can't remember (and can't be bothered looking to see) what the old rate was.

Going in to see a financial advisor at the bank on Thursday though, so I'll see if they can do me a better deal on the interest as I think I'm on their basic no frills variable rate.

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I bet my saving's account interest got cut straight away though...

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Most of my savings is sitting in a Halifax fixed rate account (7% pretax). The amount is (relatively) small, probably not worth mentioning.

I just hope the student loan interest rate won't go up next year. It had been high enough at 4.8% last year and 3.8% this year. If it hits 5%+ next year (very likely since the RPI is up so much) it is not worth borrowing :S

Our current deal runs out at the end of October and we want to extend our mortgage by about 20k so we're riding the SVR for a while till things balance out instead of locking into a rate that's only just below SVR anyway. We're with C&G and they're always pretty instant with BOE rate changes, we got the letter through about the change a week ago.

LIBOR rate is falling slowly by surely, 5.95 yesterday (after a spike over early oct when it hit 6.28)

I think allot of lenders seem to wait to see who makes the first move on reducing their variable rate. For those of you on variable rates im sure you will see some reductions soon.

Came off our fixed 4.25 rate a few months back and now on a 1 year tracker (1% above bank rate) until mid 2009 which has actually worked out ok for us. Although not sure how new mortgages will be mid next year when it goes to bank variable and looking round for a new deal.

If the recession is longer and deeper than expected some analysts predict a scenario here in the UK and US, much like in Japan in the 90's when interest rates hit 0%. Not sure in such a scenario what levels Libor would be at to affect variable rates though.

Talks of 0% interest. Might as well have the cash under the bed!

looking at 6M GBP LIBOR thou it might still not go below 6% before the end of the month, the problem is mortgage firms that rely heavily on short term financing for their books are realising the error of their ways, I'm not saying we're going to see disney length bonds been issued, but we will see the northern recks of this world wanting to finance against longer maturity LIBOR.

Crazy times 6% increase in rates in Iceland, negative swap spreads... whatever next!!!

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Originally Posted by nieros

Variable Tracker mortgage from nationwide, instantly applied. Handy for me ;)

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Me too! Shame that the rate won't go below 3% which is a distinct possibility...

I've certainly had the full 0.5% cut passed on to me in a rate cut. It's effective from the next payment.

Question, if the interest rate does drop to 0%, would it affect fixed rates?

Might be obvious but in this climate who knows.

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Originally Posted by Stringent

Question, if the interest rate does drop to 0%, would it affect fixed rates

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Erm, no, why would anyone say "pay me less money than you own"

I've had a tenner knocked off my monthly payment. Better than nothing I guess but certainly not the full rate.

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Originally Posted by Stringent

Question, if the interest rate does drop to 0%, would it affect fixed rates?

Might be obvious but in this climate who knows.

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You would just stay on the fixed rate,thats the gamble.

:angst: