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Interest rates dropped 0.25%

Started by propertyfag, February 07, 2008, 12:05:21 PM

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propertyfag

The Bank of England's Monetary Policy Committee today voted to reduce the official Bank Rate paid on commercial bank reserves by 0.25 percentage points to 5.25%. :)

Official release

propertyfag

Did anyone benefit from this? i.e mortgage rates?

kidneyboy

Nope - tied in for another 2 - 3 years yet. Mind you that is at 4.79%.
It may help if I try and get a second mortgage to start my first renovation. Got an advisor coming roun in 2 weeks after I get back from an 11 night holiday in Gran Canaria ;D ;D
The big question is are lenders going to be forthcoming these days?

Badger

Yep, keep um falling people, its only a few 10ers but hey its all good

propertyfag

Quote from: kidneyboy on February 11, 2008, 12:12:31 PM
Nope - tied in for another 2 - 3 years yet. Mind you that is at 4.79%.
It may help if I try and get a second mortgage to start my first renovation. Got an advisor coming roun in 2 weeks after I get back from an 11 night holiday in Gran Canaria ;D ;D
The big question is are lenders going to be forthcoming these days?

Do you have to pay your broker, or will he get commission from the lender?

propertyfag

Quote from: Badger on February 11, 2008, 01:45:45 PM
Yep, keep um falling people, its only a few 10ers but hey its all good

Precisely.

Keep 'em falling.

Who's your lender with, B?

A lot of lenders have been going the opposite way from the base rate and started increasing rates.

Badger

Not sure who they are with , will find out, northern rock jumps out at me for one of um son. i know im on varied so it must be helping eh !

vwilson

I really need to find the T&Cs of mine because it does something different in July ... switches to repayment I think, and possibly switches to the bank's standard variable rate at the same time. I'm not sure how long it is before I can escape (if the rate stays fixed I think I'm tied in but of course that's not so bad 'cause it'll only be about 5.25%), but if it is in July it'll be worth looking around for alternatives now.


V

propertyfag

Standard variable rate is usually 7%+. That scares me. Mine kicks in this summer, so I need to think about remortgaging.

vwilson

I saw an article today saying that inflation is being driven predominantly by fuel and food prices. Food prices are probably higher because of the transportation costs (so again, fuel).

So this inflation we're all paying for with our higher interest rates is as a direct result of the inflation-busting tax hikes the government have put on fuel.

I see the argument for taxing fuel more severely - something has to force the market to adopt green alternatives. But when the price of a train journey to most places is more expensive than taking the car (and you can fit four or five people in a car) what alternatives are we supposed to use, exactly? Hybrids aren't that common and neither are alternative fuels ... where they are available, you pay a premium for them based on the amount you will "save" by not buying petrol - so you still pay more! Where's the market incentive in that?

Still, Gordon's friends in the banks will have some nice bonuses to help them recover from the sub-prime crisis.


V