BASE RATE - Do we think it'll fall again today?

[ChugglyPig]

I'm keeping my fingers crossed

Probably.

But this will be the last fall, I should think. I seem to recall that a few years ago some lenders lent money on particular tracker mortgages which track below the base rate by 0.5% or similar, so if the rate falls below 0.5%, these lenders will be paying borrowers to borrow from them. I would imagine that this scenario would not be allowed to arise.

However, I too would like to see the rate fall: our tracker looks good at the moment.

That said, once you hit rock bottom, there's only up to go...

I think those mortgages you talk about though often have a clause where it if a base rate goes above X or below Y

I know last time I had a fixed mortgage it only was valid if base rate stayed below 10% or something similar

my tracker is 1% above base and I have to say it's helping me considerably to put some money buy each month. I have no savings and no debts except mortgage so I'm hoping it drops but was expecting a 0.25% drop ratehr than 0.5%

Ahh, do they? That sounds plausible, though I'm sure our mortgage advisor mentioned something about it before...

Our tracker isn't quite as good as that - 1.4% - but it improves our situation enormously: we're moving before we've sold/rented (I know - we're insane!), so this gives us more wiggle room!!

Forget the Bank Rate - its not important.

House prices just fell 17.7% Year-on-Year according to the Halifax which is 21% of he peak in August 2007.

It is not about interest rates anymore. Its about job losses and wages being cut by employers. Never in our lifetimes have wages actually fallen on average. Thats deflation in action. It makes debt grow in real terms.

The Bank of England is about to start Quantitative Easing which means creating money out of thin air and pumping it into the economy by buying Govt bonds. This is how Zimbabwe got to where it is today.

Agree ABD but at the moment it's helping me immensly.

I work for a company who is rolling out pay cuts so I know exactly what is happening and I am feeling it. I don't know if I will have a job from one qtr to the next

True.

That is, of course, "the bigger picture".

I feel ridiculously lucky not to be so badly affected by the recession, for various reasons.

Not sure I agree that the quantitative easing need necessarily go the way of Zimbabwe/Weimar Republic, which are the scare-mongering points of reference for most commentators. Not ideal, of course, but - hopefully! - the underlying structure of the UK economy is in better shape than those examples.

Put it this way: Italy is not exactly in great economic shape. But it is in no way comparable to Zimbabwe or the WR. Yet it used to go in for quantative easing all the time before the euro (indeed - many Italians were against going into the Euro for this reason).

quantitative!

down 0.5% yeay

Well I hope you enjoy your extra £50
All those you've lost their jobs get their mortgages paid at 1% above the base rate so if like most people have your mortgage is around 5% they will lose their homes.
Enjoy your little saving though won't you

..ignore the sour grapes of some people ladies.. some benefit some don't. I say that and I have more savings than mortgage but hey ho that's the way it is sometimes.

So you have more savings than mortgage and you think people getting repossesed is sour grapes must be a lovely view from your ivory tower

Wrong side of bed Sorrento?

perhaps you are at risk of losing your job. I know I am but you have to roll with the punches

No mightly pissed off with your attitude love.

When you have lost your job come back and say yeay then, let me know how useful your little saving is then .

So short sighted it's not even funny

you are mad.

If I lose my job. which is highly likely i will be paying less interest on my mortgage out of my redundancy money.

What exactly is your issue. besides my attitude.

and I'm not your love.

Sorrento - that used to be the case, 1% above the base rate but the government has (for once) realised that was potentially going to make lots of people homeless and so have kept it to something like (can't remember exact figures) to 1% above 5.68% so people should be ok (ish!).

BUT totally agree that making people's debts cheaper at the expense of savings/ pensions and other people who have been prudent is just so wrong on so many levels.

Well I merely take the view that its swings and roundabouts. Some years savers win some years debtors/houseowners win. I refuse to be bitter about other people's good fortune! oh and by the way I have no 'ivory tower' just a run of the mill terrace and a bit of savings.

I hear terrace is the new ivory tower izyboy

Ivory tower - so last season

I know darlink!

lol.. just reread thread.. have no idea why sorrento is so pissed off with me. no idea at all.

Well I have a feeling it isn't personal.. I sense that it is her very own idiosyncratic 'style'.

How exhausting it must be

Sorrento aren't you renting waiting to cash in when house prices fall anyway - have seen your posts in the property section (keeping an eye as we need to move soon) apologies if different poster!!!

No I'm a home owner with an unemployed husband watching and waiting, yes we have cash in the bank we also have a sick MIL who needs to move in with us.
With 3 children already we need a decent sized house, a very small mortgage and the economy to just friggin stabilise.
I also have a best friend who's on a tracker mortgage living hand to mouth with her three children, can't sell her house so yes she's £50 a month better off too but loosing £5k a month on her house.
I am not going to be happy with any outcome to be fair.