A big rate cut at last !!?? I hope........

[Cyberman]

After a year of me saying that we needed big rate cuts to AVOID recession after the moneymarkets dried up, we have delayed and delayed. Now that we are actually in a recession it looks like we will get those big cuts very soon.

Yet more evidence of Labour dithering their way to disaster.

[swamp]

After a year of me saying that we needed big rate cuts to AVOID recession after the moneymarkets dried up, we have delayed and delayed. Now that we are actually in a recession it looks like we will get those big cuts very soon.

Yet more evidence of Labour dithering their way to disaster.

Hope we get a massive rate cut, I'm on a full-term tracker mortgage

[Spacecadet]

with this thread titel I thought you were going to discuss contractor day rates

[Peoplesoft bloke]

Hope we get a massive rate cut, I'm on a full-term tracker mortgage

Me too.

[Cyberman]

Hope we get a massive rate cut, I'm on a full-term tracker mortgage

Me too !! Some banks are not reducing rates below a certain level regardless of how low the rates go...read your mortgage contract. First Direct, my bank, have said that they will follow the rates down, but most other banks will not go below 3.5%.

[Tensai]

Me too !! Some banks are not reducing rates below a certain level regardless of how low the rates go...read your mortgage contract. First Direct, my bank, have said that they will follow the rates down, but most other banks will not go below 3.5%.

Also check if the contract states the BOE base rate or the <bankname> baserate... AFAIK there's no obligation for the two to be in synch.

[Cyberman]

Some info on 'COLLARS'(the technical term):

Once base rate falls to 2.75%, Nationwide will not pass on reduction to tracker customers.

Halifax can increase its margin once base rate hits 3%, but must write to customers.

Yorkshire and Skipton B/S stop passing on rate at 3% base rate

HSBC reserves the right to stop cutting trackers

Barclays, Loyds and First Direct have NO collar !!

Abbey has a collar of 3% on older mortgages

[Peoplesoft bloke]

After a year of me saying that we needed big rate cuts to AVOID recession after the moneymarkets dried up, we have delayed and delayed. Now that we are actually in a recession it looks like we will get those big cuts very soon.

Yet more evidence of Labour dithering their way to disaster.

Yeah, if only the bastard Bank of England would listen to CyberTory, everything would be great.

[Cyberman]

Yeah, if only the bastard Bank of England would listen to CyberTory, everything would be great.

History shows that it would have helped. SMUG

[Bagpuss]

After a year of me saying that we needed big rate cuts to AVOID recession

You still don't get it? Most economists believe low rates are the reason we were in this mess in this first place, cheap money, easy credit, bang!
If rates were higher and reflected true inflationary pressures the banks would not have been lending so freely for so long. The crunch was caused by low rates! and your plan would have been to lower them further. But then your concern isn't the wider economy but servicing YOUR mortgage.


PS As an economic 'expert' you are the person who also told us the housing market wouldn't crash due to supply and demand!