News - Bank of England shocks with massive 1.5% cut in interest rates

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The Bank of England has announced the biggest single cut in interest rates in a generation.

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Read more.

Blimey - didn't expect that one coming.
A cut was obviously in the offing but i wasn't expecting anything over 1%

I can't help thinking this is a bad move. Very bad. It's definitely bad for my savings.

i think its bad for the pound reducing interest rates so its worse doing this, pound will be worse against pound and so goods go up in price as well as lack of sales so its going to do more damage.

I've just bought a house at the rate in early October. To say I'm not pleased is an understatement.

Yay! The wonders of a baserate tracker mortgage! I am cetainly happy about this. It means more money in the pot for the renovations on my house.

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Originally Posted by Tarinder

I've just bought a house at the rate in early October. To say I'm not pleased is an understatement.

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No tracker mortgage?? There's no way I would consider anything else at the moment.

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Originally Posted by s_kinton

No tracker mortgage?? There's no way I would consider anything else at the moment.

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Really? Fixed rate would look pretty attractive if/when this cut is passed on by lenders...

P.S. Bad luck T. I'm on a fixed rate too :wallbash:

The problem is they won't pass on too much of the cut to the fixed rates. They are also only really offering them for long terms at present and if you need more than a 75% mortgage then they really stiff you with the rate. I am very glad our renewal and then house buy came up before all of this.

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Originally Posted by menthel

Yay! The wonders of a baserate tracker mortgage! I am cetainly happy about this. It means more money in the pot for the renovations on my house.

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I doubt it will be passed onto you fella.
The bank arent playing that game atm

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Originally Posted by Blitzen

I doubt it will be passed onto you fella.
The bank arent playing that game atm

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Not ATM, but politicians are going to put a lot of pressure on them to do so. And we own most of the banks now don't we? :rules:

Batten down the hatches.
I'm still waiting for some of my Icesave money back, so I can't fix any more of my money in these decent fixed rate accounts.

Hope it's not too little too late :(

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Originally Posted by Blitzen

I doubt it will be passed onto you fella.
The bank arent playing that game atm

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No understanding of the concept of a baserate tracker then? My mortgage is calculated as baserate + a certain amount. Therefore it will be passed on.

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Originally Posted by menthel

No understanding of the concept of a baserate tracker then? My mortgage is calculated as baserate + a certain amount. Therefore it will be passed on.

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I do understand and i know how it works.
The thing is, in this climate, the rules can change at the drop of a hat and i really dont think (unfortunately), you will see any kind of movement anytie soon.

I hope you do....really....but the banks seem to be closing ranks.

Banks are are like your worst best friend, nice as Pie to your face and will stab you in the back as soon as its turned, how they can get away with not imposing the lower rate is beyond me,

I know that its the between bank borrowing that is there achilles heel, but so freckin what, we had to bail them out because they cocked everything up, now that we have used are hard earned cash to stablise there short comings, they still want to shaft us.

Not sure what to expect from the banks or what if indeed they will drop the interest rate to if at all, but i do know that we will get the short straw which everway it does go.

:(

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Originally Posted by Blitzen

I do understand and i know how it works.
The thing is, in this climate, the rules can change at the drop of a hat and i really dont think (unfortunately), you will see any kind of movement anytie soon.

I hope you do....really....but the banks seem to be closing ranks.

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Baserate tracker, tracks baserate. Says so in the contract. Therefore it will change. At least thats what mine does.

Are you thinking of the SVR?

yea, looks most base-tracker deals are cancelled, or something. setting up a new mortgage is still expensive despite lower base rates :(

The prudent have been stung once again