# Interest Rates Down Again! 1% Now



## ardandy (Aug 18, 2006)

My 5 year fixed rate ends in Jul/Aug so hopefully it'll carry on and I'll get a great rate in the summer! 

Down 0.5% to 1% now.


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## rinns (May 24, 2008)

ardandy said:


> My 5 year fixed rate ends in Jul/Aug so hopefully it'll carry on and I'll get a great rate in the summer!
> 
> Down 0.5% to 1% now.


I doubt it mate, it dosn't matter what the inter bank lending will be. They need to make big profits to make up for the bad debts. The APR will be around the same as it always has been for mortgages 4.5-6%


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## Neil_S (Oct 26, 2005)

I'll be paying the bank for my savings soon. Although fixed rate ends for me in June so may benefit too.


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## R32rob (Feb 26, 2008)

there are no REALLY good mortgage rates out there at the moment. Most fixed rates have been removed completely.

The lenders want it both ways.


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## ardandy (Aug 18, 2006)

From my calculations I should save £100 per month compared to the last fixed period. Even at todays rates.


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## Bigpikle (May 21, 2007)

my mortgage is almost interest free now


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## rich-hill (May 13, 2008)

I savings are hardly worth saving...


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## Bigpikle (May 21, 2007)

I dont get the 'its not worth saving' argument at all?

If I put £1000 in my savings, them I get £1000 more savings AND a little bit of interest next year - maybe only £10/1% or whatever. If I dont save it and spend it instead, I have nothing next year. How can it not be worth saving?

Saving means building up a fund to call on later, in an emergency, for a big purchase or when you dont have an income any more. If there's very little interest then it just means your savings grow at a lower rate, so its MORE important to save money....

Maybe it's just me :wall:


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## slapshot (Jul 29, 2007)

Bigpikle said:


> I dont get the 'its not worth saving' argument at all?
> 
> Maybe it's just me :wall:


Yeah but if inflation is higher than the % return on your savings you are LOOSING money. You may as well spend it.

Sadly my tracker deal ends next month and jumps from 1.24% now to 4.8%. Not a big deal though as I'm switching to a 2 year 4.6% fixed rate deal from March









I'm using the monthly savings to pay of more of the loan.


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## ade33 (Jun 4, 2008)

Bigpikle said:


> my mortgage is almost interest free now


Me too. Loving my base tracker, after todays drop now running at 1.18%.


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## dubnut71 (Jul 25, 2006)

ade33 said:


> Me too. Loving my base tracker, after todays drop now running at 1.18%.


Where's that mate? I can only seem to get 1.99 % and there's a fee!


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## parish (Jun 29, 2006)

A colleague of mine is just coming to the end of a fixed rate with Alliance & Leicester (I think it is) and was searching around for a good deal to replace it with when, out of the blue, he gets a letter from A&L offering him a tracker at 0.75% above BoE base rate *for the life of the mortgage* with no minimum penalty period which beats anything else he could find hands-down. I can only assume that they want to keep good customers.

My tracker ends in Aug. so it will be interesting to see what options are available then. The original plan was to move house but I expect that's unlikely to happen now though.


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## Lakelord (Jun 30, 2007)

Changed mine to an offset, 1% above base with no collar. Benefit of the offset at the moment is you get no return on your savings so you may as well use it to reduce the capital outstanding and pay off as much as you can while the rates are so low.


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## Bigpikle (May 21, 2007)

slapshot said:


> Yeah but if inflation is higher than the % return on your savings you are LOOSING money. You may as well spend it.


OK - so you are 1-2% behind inflation, so what?

You have £1000 to save, and a year later you still have £1010. You spend it and you have £0. Not sure I see why I'm better off spending it, as I'm £1010 worse off :wall:

Scored a HUGE winner - 18 months ago I switched (for free) to a LIFETIME BoE + 0.49% deal 

No collar, fees, caps....major win :thumb:


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## Frothey (Apr 30, 2007)

totally agree - cant see how blowing a grand on something you dont want is better than having
a granfd in the bank - unless its on whores/crack/booze :lol:

1.37% for me now.... wont be moving house again as i'll never be able to get those rates again :lol:


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## ChuckH (Nov 23, 2006)

Bigpikle said:


> I dont get the 'its not worth saving' argument at all?
> 
> If I put £1000 in my savings, them I get £1000 more savings AND a little bit of interest next year - maybe only £10/1% or whatever. If I dont save it and spend it instead, I have nothing next year. How can it not be worth saving?
> 
> ...


Its not savings cos interest is lower than inflation rates So therefore You loose !
Some pensioners rely on the interest on thier savings to top up the pathetic state pensions IE The poverty line set by the Government is £154 for a single Person But the pension for a couple in this country is I think around £119

Also there are those like Myself who have saved hard (And encouraged by the government to do so) Who rely on that interest to live on ???????????????????? In the last 20 years Ive paid in direct taxes which does not include NI The sum of £212.000 And cannot in these hard times get a single penny coin in any kind of benifit!!!!! Now the charlie arstards cut our savings to pieces RANT OVER ..


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## philworrall (Nov 17, 2006)

I believe the trick here is not to save it but rather to invest it in something that will make more money. However, to get the country out of this sh1t it is better to spend.

HTH

Phil


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## Bigpikle (May 21, 2007)

^^ I get that Chuck - I have a degree in finance...and have saved hard for 20 years as well...

BUT, it still isnt better to spend it than save it


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## ade33 (Jun 4, 2008)

dubnut71 said:


> Where's that mate? I can only seem to get 1.99 % and there's a fee!


Hello mate. It's a Woolwich lifetime tracker that we bagged a couple of years ago. Our IFA found it and we couldn't believe our luck. Last time I looked Woolwich's best tracker was base plus 2% which is a shame as they've been good for us but no longer the cheapest it seems. Also looking for a new mortgage as we're selling (hopefully). If I can find owt I'll post it up.


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## dubnut71 (Jul 25, 2006)

ade33 said:


> Hello mate. It's a Woolwich lifetime tracker that we bagged a couple of years ago. Our IFA found it and we couldn't believe our luck. Last time I looked Woolwich's best tracker was base plus 2% which is a shame as they've been good for us but no longer the cheapest it seems. Also looking for a new mortgage as we're selling (hopefully). If I can find owt I'll post it up.


HSBC are offering me base plus .99% but for 2 yrs fixed its a £999 fee. I have about 60% equity in my house so should qual for a good deal....


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## slapshot (Jul 29, 2007)

Bigpikle said:


> ^^ I get that Chuck - I have a degree in finance...and have saved hard for 20 years as well...
> 
> BUT, it still isnt better to spend it than save it


I´m not advocating spending all your savings, just pointing out it can be a depreciating assett. After all, we all need something put by for emergencies. I just have a problem with your 1000 pounds being worth less than that in real terms after saving it for a year.


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## parish (Jun 29, 2006)

dubnut71 said:


> HSBC are offering me base plus .99% but for 2 yrs fixed its a £999 fee. I have about 60% equity in my house so should qual for a good deal....


Do you have your current mortgage with them, or a new customer?


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## dubnut71 (Jul 25, 2006)

parish said:


> Do you have your current mortgage with them, or a new customer?


My current mortgage is with C+G but i do all my business and personal banking with HSBC


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## parish (Jun 29, 2006)

dubnut71 said:


> My current mortgage is with C+G but i do all my business and personal banking with HSBC


My mortgage is with Birmingham Midshires (part of HBOS) and my bank is NatWest (been with them 34 years) so it'll be interesting if either have anything good to offer me in Jul/Aug.


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## Hair Bear (Nov 4, 2007)

Bigpikle said:


> I dont get the 'its not worth saving' argument at all?
> 
> If I put £1000 in my savings, them I get £1000 more savings AND a little bit of interest next year - maybe only £10/1% or whatever. If I dont save it and spend it instead, I have nothing next year. How can it not be worth saving?
> 
> ...


Then £1000 the year after. And another £1000 the year after that.

Then you get hit by a bus. DOH! :lol::lol::lol:

Spend man! :thumb:


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## ade33 (Jun 4, 2008)

dubnut71 said:


> HSBC are offering me base plus .99% but for 2 yrs fixed its a £999 fee. I have about 60% equity in my house so should qual for a good deal....


Yep our ltv is about 45% so we can get access to the better rates. Base + .99% sounds good to me even with the fee. Woolwich trackers at base + 2.29% have a £995 fee. Difference is I guess the Ww mortgage is a lifetime against 2 years for the HSBC.

I think I need to drop in and see the IFA fella tomorrow.


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## Star2 (Aug 20, 2008)

Bigpikle said:


> ^^ I get that Chuck - I have a degree in finance...and have saved hard for 20 years as well...
> 
> BUT, it still isnt better to spend it than save it


Agree with what you are saying. Besides, there are plenty of opportunities to fix a saving rate before each rate drop occurred. I know that this sounds harsh, but if its apathy that gives rise to very low returns. Money cannot sit in any account forever and achieve a decent return. It was only a few months ago that savings could be fixed at 6.5%.


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## Mugwump (Feb 17, 2008)

True, but unless the pound soon regains some value against other currencies, we could be looking at double figure inflation later in the year as prices rise to take up the difference - imports have been made over 30% more expensive by the exchange rate. 

Then where are you with 6.5% interest on your savings? 

Having said that, I don't think I would feel secure without that 'lump' in savings, so I won't spend mine just yet


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