Reply to: "Base rate to say at 0.5% till 2016"

[Mich the Tester]

Erm, we pay income tax on interest on savings, starting from 0, at 40% - if in the upper rate.

[OwlHoot]

If all those Russkies and other foreign investors in offshore tax havens like Cyprus are being rustled up and fleeced like a bunch of bleating sheep, then won't their next logical step be to largely abandon bank accounts and join the many already buying UK property for investment.

So properties in the SE, and London in particular, will continue rising in value and become ever more out of reach of young buyers in this country.

On that basis, it seems like another huge property bubble is brewing.

[VectraMan]

Yes, and here in Euroland we have so-called 'wealth taxes' if you save more than 19,000 euros, whereby you pay income tax on interest that's set by the tax-scum at the entirely fictitious rate of 4%.

There's a word for this and it rhymes with cleft.

Erm, we pay income tax on interest on savings, starting from 0, at 40% - if in the upper rate.

I've just done my SA, which meant adding up the interest on my personal deposit account for the last tax year. It came to £6.

[OwlHoot]

Yes, and here in Euroland we have so-called 'wealth taxes' if you save more than 19,000 euros, whereby you pay income tax on interest that's set by the tax-scum at the entirely fictitious rate of 4%.

There's a word for this and it rhymes with cleft.

Yes, all those good little savers must be feeling bereft

[DimPrawn]

Look Mr Poorly-Lit Crustacean, you don't understand it do you? Governments are not supposed to do that which is wise, like reduce debts and encourage saving and investment, they're supposed to do what the average nitwitted voter tells them to do and then blame somebody else when it all goes pear shaped.

Oh okay then.

[Mich the Tester]

So we are all propping up the property bubble by sudsidising cheap mortgages for those that bought at the peak?

Such a sensible policy for a govt to pursue.

Look Mr Poorly-Lit Crustacean, you don't understand it do you? Governments are not supposed to do that which is wise, like reduce debts and encourage saving and investment, they're supposed to do what the average nitwitted voter tells them to do and then blame somebody else when it all goes pear shaped.

[DimPrawn]

When the mortgages above such as base plus 0.44% were taken out back in 2007, base rate was around 5-6%. Lets say you toook out a mortgage for £300,000 over 25 years at 5.44%. This would work out to £1829pcm. With base rate at 0.5%, your new rate would be 0.94% which means a new monthly payment of £1122pcm. Thats a saving of £707pcm. If you keep paying the original £1829, you will shave years of your mortgage term by paying a lot less interest.

So we are all propping up the property bubble by sudsidising cheap mortgages for those that bought at the peak?

Such a sensible policy for a govt to pursue.

[Martin@AS Financial]

I love the concept of money being cheap.

Looking forward to the next logical step, free money for everyone!

When the mortgages above such as base plus 0.44% were taken out back in 2007, base rate was around 5-6%. Lets say you toook out a mortgage for £300,000 over 25 years at 5.44%. This would work out to £1829pcm. With base rate at 0.5%, your new rate would be 0.94% which means a new monthly payment of £1122pcm. Thats a saving of £707pcm. If you keep paying the original £1829, you will shave years of your mortgage term by paying a lot less interest.

[Mich the Tester]

You are currently paying to have money, due to inflation meaning negative interest rates.

Yes, and here in Euroland we have so-called 'wealth taxes' if you save more than 19,000 euros, whereby you pay income tax on interest that's set by the tax-scum at the entirely fictitious rate of 4%.

There's a word for this and it rhymes with cleft.

[aussielong]

I love the concept of money being cheap.

Looking forward to the next logical step, free money for everyone!

You are currently paying to have money, due to inflation meaning negative interest rates.

[d000hg]

I wish I was in debt.

It only helps if you got into debt before or soon after the rate fell so low. If you want to borrow money you still pay 5% or more, it seems.

My old mortgage is at 1% as it's a tracker from when rates were at 3% or so. My new mortgage is at 3.something%

[Mich the Tester]

I love the concept of money being cheap.

Looking forward to the next logical step, free money for bankers!

ftfy

The German government actually make you pay for the privilege of lending them money. Their bond yields are sometimes negative.

What a ****ed up situation we have.

[DimPrawn]

Hopefully you chaps are all overpaying your mortgages whilst money is historically cheap.

I love the concept of money being cheap.

Looking forward to the next logical step, free money for everyone!

[Martin@AS Financial]

Hopefully you chaps are all overpaying your mortgages whilst money is historically cheap.

[blacjac]

Base + 0.49%

(Also know that another CUKKER can beat that as well )

Base + 0.48%!

Woolwich, started 2007. Can't get that low now!

Sent from my Nexus 10 using Tapatalk HD

Base + 0.44

Took out in April 2007 at the peak of property prices so swings and roundabouts...