# Interest rate CUT again!



## Zax (Jan 30, 2007)

There has been another reduction in the base rate of interest by the Bank of England

It has been reduced by 1% and now stands at 2.0 %

Good news for those on flexable morgages


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## Shug (Jul 13, 2007)

I'm on a tracker and praying there's no collar on it (or a nice low one)
Be down to paying 2.99% on mortgage.


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## one_question (Nov 12, 2008)

Bad news for those with savings.

My mortgage is fixed - 18 months left with a 1% a year penalty. I may have a look, it's probably worth me taking the hit on the penalty now.

Decisions, decisions...


G


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## Glasgow_Gio (Mar 24, 2008)

one_question said:


> *Bad news for those with savings.*
> 
> My mortgage is fixed - 18 months left with a 1% a year penalty. I may have a look, it's probably worth me taking the hit on the penalty now.
> 
> ...


Not got much in the way of owing money but my savings will be hit. Gutted.


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## Bigpikle (May 21, 2007)

yeah baby 

thats £4k a year saved on my mortgage so far with both the cuts


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## Cornish (Jun 20, 2008)

Getting fed up with this rate cut, what about the people with savings! Where's the incentive to save


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## Simmo (Aug 31, 2008)

savings and a fixed rate mortgage


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## Philgr (Apr 9, 2006)

Cornish said:


> Getting fed up with this rate cut, what about the people with savings! Where's the incentive to save


They dont want you to save, they want you to spend !!!!


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## Shug (Jul 13, 2007)

Cornish said:


> Getting fed up with this rate cut, what about the people with savings! Where's the incentive to save


There isn't one. That means you go spend all your savings instead, thus single handedly saving the economy.


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## spitfire (Feb 10, 2007)

Soon be giving us money to borrow money :lol:


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## Bigpikle (May 21, 2007)

would buying Vintage single handedly save the UK economy


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## parish (Jun 29, 2006)

Philgr said:


> They dont want you to save, they want you to spend !!!!


But I doubt it will work because the more astute amongst us realize that the rates will go back up again so will either continue to pay the same on our mortgages (if we can - I can't so will be putting the savings in an ISA) so we don't get caught out when they do.



spitfire said:


> Soon be giving us money to borrow money :lol:


I read somewhere recently that interest rates in Japan are 0%  - hmmm, I wonder if you can you get a Japanese mortgage on a UK house?


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## Zax (Jan 30, 2007)

The government economists are already speaking of another 0.5% drop in the new year.2009 looks like it is going to be a low interest year


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## Huw (Feb 16, 2007)

parish said:


> I read somewhere recently that interest rates in Japan are 0%  - hmmm, I wonder if you can you get a Japanese mortgage on a UK house?


The Japenese interest rate was dropped to 0% back in 2001 and stayed at that level for about five years. The current rate has recently dropped back to .3%. The problem with such low rates is that it can lead to deflation.

They may want us to spend, spend, spend but with so many job losses being announced each day I think many will save what they have.

If your worried about savings, make sure you are maxing your ISA.


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## Exotica (Feb 27, 2006)

All well and good if the rate is passed on, some have a collar rate of 3% so its a no from them.


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## Jakedoodles (Jan 16, 2006)

I paid off my mortgage and now have savings, so I see nothing but a hit from these cuts! 

We're turning like the US (and look where that got them.) They dropped and dropped the interest rates to get people to spend, and not save. They did so, and then had no contingent when thing's got tough and they couldn't pay their mortgage etc.


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## Huw (Feb 16, 2007)

Wonderdetail said:


> I paid off my mortgage and now have savings, so I see nothing but a hit from these cuts!
> 
> We're turning like the US (and look where that got them.) They dropped and dropped the interest rates to get people to spend, and not save. They did so, and then had no contingent when thing's got tough and they couldn't pay their mortgage etc.


The scariest thing for me is that while we are turning like the US, they at least are a producer of goods which can be sold around the world, generating an income. The UK has become a service provider, heavily reliant on the Financial Services industry and look how well they are doing.


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## Cornish (Jun 20, 2008)

Might be better off spending all my savings, close the business and live on benefits
Just spent a small fortune changing the POS machines and price tags to reflect the drop in VAT.
I thought small business was the heart of this country.
Haven't seen anything from the government to reflect that.


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## Jakedoodles (Jan 16, 2006)

Cornish said:


> Might be better off spending all my savings, close the business and live on benefits
> Just spent a small fortune changing the POS machines and price tags to reflect the drop in VAT.
> I thought small business was the heart of this country.
> Haven't seen anything from the government to reflect that.


Specsavers UK have released a statement saying they are not changing prices because the signage and literature cost would be too high and as they are offering deals all year round anyway, they feel they can justify this. So effectively they've put their prices up! Mind, the VAT is only on the glasses, as the professional services bit is not Vat'able afaik.


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## Cornish (Jun 20, 2008)

Oddly enough, one supplier I use increased his prices by 3% on Monday. Funny That


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## R32rob (Feb 26, 2008)

Bugger... Fixed for another 2 and half years...


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## dantiatto (Oct 21, 2008)

I tell yers, gordon brown is sh*****g himself - when the balloon FINALLY goes up and we're back to where we were in 1992, with millions unemployed & houses being repossessed left right & centre, he'll be getting all that 'tory boom & bust' stuff quoted back at him ad infinitum. he'll be seen as the architect of the country's downfall, whilst saint tony bliar privately gloats in the background whilst publicly shedding crocodile tears for his 'old chum'.


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## gherkin (Jul 6, 2008)

R32rob said:


> Bugger... Fixed for another 2 and half years...


I'm fixed until April next year, however I'm not particularly fussed about the mortgage rate as if I was on a variable and the rates went up I would be bricking it. At the moment I'm paying the set amount each month no problem and will try and get another fixed deal for the next 5 years after this one expires.

My concern is the savings. I was hoping to have £9k (+ interest) in a stocks and shares ISA after 3 years, currently coming up to 2 years and its worth half of what i've put in. Hence I have now moved to a mini cash isa, but scottish widows took so long to put the paperwork through i missed the 6% rate and now have 4.5%


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## KnightUnit (Dec 31, 2007)




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## P2P (Feb 5, 2008)

Well thats £3.5K saved a year on the morgage if my lender passes on this cut aswell  Me thinks putting us on a tracker was a gamble that could of paid off.


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## Shug (Jul 13, 2007)

I have no collar 
If they keep cutting interest rates, I'll soon have a free house :lol:


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## Roan (Jun 13, 2007)

Those with savings - don't forget the interest rates on savings are all relative to inflation. If inflation drops to 1-2% (or even deflation :doublesho) then you will be quids compared to those without. 

The VAT cut is effectively only a 2.1% cut not 2.5%. If a TV cost £100 plus VAT @ 17.5% then it'll have dropped to £115 instead of £117.50 which is a reduction of 2.1% NOT 2.5%. 

I'm on a +0.99% lifetime tracker with A&L. :thumb:


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## Frothey (Apr 30, 2007)

+0.37% lifetime BOE base tracker with no collar..... i wont be moving for the foreseeable future as we wont be getting those again for a while!

that's really got the housing market moving


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## colarado red (Jun 5, 2008)

wonder if northern ck pass it on to it's svr customers this time


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## PWOOD (Apr 30, 2007)

Shug said:


> I'm on a tracker and praying there's no collar on it (or a nice low one)
> Be down to paying 2.99% on mortgage.


Me too. Can be bothered reading the T&A's again as I was only interested in get out penalties the last time I looked and that nearly turned me into an alcoholic:lol: I will await my letter with great anticipation.

Only a few months ago all the I KNOW BEST folks at work were acting all smug with there super fixed rates and looked at me with a tracker as if I was mad. Same folks that added £400 - £600 in arrangement fee's to their mortgage to get this so called great deal.


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