Membership is FREE – with unlimited access to all features, tools, and discussions. Premium accounts get benefits like banner ads and newsletter exposure. ✅ Signature links are now free for all. 🚫 No AI-generated (LLM) posts allowed. Share your own thoughts and experience — accounts may be terminated for violations.
Interest rate cut by 1.5%
- Thread starter stender
- Start date
- Status
LLoyds have said they'll pass on the full drop to their variable rate payers.
On a £100k mortgage, the rate drop will save someone approx £70 a month, so those who might not be tied to their provider will vote with their feet to save that sort of money - I know I would...
- Joined
- Jun 18, 2006
- Posts
- 1,664
- Reaction score
- 21
Saw it coming, locked in all my savings at 7.00% and picked up dividends greater than 7%. Was a little surprised by 1.5%, 1% fine could see that!
In most cases yes, it's called an Early Redemption Penalty. However, it usually equates to the amount of interest they would've got if you'd been on their standard mortgage for the term.
I.e. I'm on around 5.3% fixed for three years. I've got another year left. If I cancel now, I'll be charged the interest on the standard rate which I think is around 7.2%. In any case, the charge to cancel is in the £x,xxx. So I'll be waiting till my fixed rate runs out
I think they said that before the cut! bet they're kicking themselves!
Im nearly 2 years into a 10 year fixed at 5.18
- Joined
- Aug 30, 2007
- Posts
- 3,517
- Reaction score
- 17
I'm 6 months into a 5 year fixed at 5.95%, but my view is that we sold when the price was almost at it's height and at least we were able to sell! There is a house still for sale in my old street that's down by £15k, since it went on the market back in Dec 07. The new builds have not been reduced in price, so our mortgage is £15k less than it would be now, but at a slightly higher rate.
You pay your money, you take your chance!!
You pay your money, you take your chance!!
Not worth it IMO. The assumption is that a big cut will mean that a remortgage offer will be at the new rate. Easy to assume unless you dig deeper into the rot at the heart of the banking system.
'New money' ie that the banks can lend invariably don't come from the banks but the wholesale money markets, where the lending rate is controlled by the LIBOR -interbank lending rate. This doesn't always track the government rate, and at present id significantly higher... its the reason why new mortages are: 1. scarce, 2. expensive, 3. not tracking the rate cuts.
I'm on svr for the last 5 months. I purposely didn't move back to a fixed due to the climate & I expected rate cuts... none of which have been passed on. If the building society don't pass this one on, well I'll have a long memory when the good times come back and they want to offer me new products.
'pissed off with greedy bankers'...
S
- Joined
- Apr 20, 2006
- Posts
- 1,998
- Reaction score
- 82
I think its safe to say more cuts will be in the pipeline 
I also think next year will bring dire times. Its always a good 9 months after a rate rise before it starts to bite. Even given the rate cut today, the credit crunch will bite very hard next year.
Large unemployment and I bet you a major reduction on ppc/affiliate commision.
From what I've been reading, the banks are starting to call in a lot of loans on businesses as they try to shore up their capital. Very bad news.
.
I also think next year will bring dire times. Its always a good 9 months after a rate rise before it starts to bite. Even given the rate cut today, the credit crunch will bite very hard next year.
Large unemployment and I bet you a major reduction on ppc/affiliate commision.
From what I've been reading, the banks are starting to call in a lot of loans on businesses as they try to shore up their capital. Very bad news.
.
- Joined
- Jul 27, 2006
- Posts
- 607
- Reaction score
- 18
falling pound will bring inflation.
official consensus is that inflation will fall massively.
official consensus is always wrong!
yesterday
------------------------------------------------------
interest rate news by rss feed at interest rates .uk .com
official consensus is that inflation will fall massively.
official consensus is always wrong!
yesterday
------------------------------------------------------
interest rate news by rss feed at interest rates .uk .com
- Status
Similar threads
