Omega Owners Forum
Chat Area => General Discussion Area => Topic started by: Jimbob on 06 November 2008, 12:07:28
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down to 3% 1.5% drop.
Holy shite!
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down to 3% 1.5% drop.
Holy sh*te!
Uhm, said on news this morning it was 1/2 off one % :-/
Though the full amount was not expected to be passed on to home owners etc >:(
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down to 3% 1.5% drop.
Holy sh*te!
Uhm, said on news this morning it was 1/2 off one % :-/
Though the full amount was not expected to be passed on to home owners etc >:(
Mine will :)
On a staff rate so pay the base rate, 3%
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Bet the rate gets adjusted for savers though. :-/ :-/
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I don't think the rate cut will be passed on, the last one wasn't >:(
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c&g have passed this on in full, others to follow...
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Blimey. 1.5% :o
Not that the base rate means a lot these days.
I had a feeling my mortgage was on a 2 year tracker which was due to expire end of october. Imagine my delight when I phoned them (HBOS ::)) up to find out what sort of derisory deal I'd get afterwards... only to be reminded that I took out a lifetime tracker not a 2 year one. :y
It's significantly better than anything currently on offer too. Must check how low the base rate can go before it bottoms out though. :-/
Kevin
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Not being a sour puss wanting to rain on the parade, but the rate cut is the good news part of it. ::) ::) ::)
The Bank of England have taken this action because they believe the economy is on the "verge of depression"!!! so beyond just recession:o :'( :'( :'( :-X
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I don't think the rate cut will be passed on, the last one wasn't >:(
My guess is that the full 1.5% will be cut from people's savings accounts....but the same will not happen for people on the standard variable mortgage rate.
As the government/people now have such a big stake in some banks....I feel that Gordon brown and Alastair Darling should be INSISTING that the banks pass on ALL the reductions as opposed to asking if they might like to do so.
The banks seem to be dismissive of both the British people and the British Government. :y :y :y
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Watch the exchange rate plummet
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Not being a sour puss wanting to rain on the parade, but the rate cut is the good news part of it. ::) ::) ::)
The Bank of England have taken this action because they believe the economy is on the "verge of depression"!!! so beyond just recession:o :'( :'( :'( :-X
Sadly if it had not been dropped as low as it did in the last 5 years maybe there would not be the situation of all the reposesions it caused. Low lending rate, greed, and no constructive structure other than to provide more mortgages than other lenders. :-/
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Forgive my ignorance on this subject, but was it not low interest rates that led to the problems in the first place.
Will this not just add to the problem ?
Mike
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Forgive my ignorance on this subject, but was it not low interest rates that led to the problems in the first place.
Will this not just add to the problem ?
Mike
Not while things are stagnant Manta ........but if the economy starts to overheat again at a later date then...interest rates may have to go up again to cool things down again. :y :y :y
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Forgive my ignorance on this subject, but was it not low interest rates that led to the problems in the first place.
Will this not just add to the problem ?
Mike
As per my post above.
Low interest rates may help everyone get back on thier feet, but I really think the mortgage lending rules need to be looked at. maybe proof that a borrower could manage repayments up to a certain amount before lending, agreements to adjust thier mortgage in times of rate rises if they fall in the poo (obviously within reason and as a last resort, maybe a 3 strike mortgage. 3 ammendments to help you keep a roof over your head, then if all fails then Sorry) Then if a house is reposesed then a massive fine to the mortgage lender for being too stroppy in just getting a sale and not suffering the consequences with the borrower. May then the structure of the housing market will become more stable.
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Forgive my ignorance on this subject, but was it not low interest rates that led to the problems in the first place.
Will this not just add to the problem ?
Mike
Not while things are stagnant Manta ........but if the economy starts to overheat again at a later date then...interest rates may have to go up again to cool things down again. :y :y :y
Please forgive me again, but it seems that they drop interest rates to encourage people to borrow, then when we do borrow they incresae interest rates to stop us borrowing because it's bad to have debt.
I really don't understand it all sorry
Mike
P.S. got headache now.
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They cant seem to find a balance that will work in all directions and create stability. They just cant balnace the budgeting forcasts and then end up paniking to raise money, then we all suffer, then when it looks like they have problems they panic all over again.
History repeats itself, interest rates all slow the shopping down before christmas, but then shoppers all then say stuff it and because they have a depression before christmas then go out and spend even more money to cheer themselves up.
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Forgive my ignorance on this subject, but was it not low interest rates that led to the problems in the first place.
Will this not just add to the problem ?
Mike
Not while things are stagnant Manta ........but if the economy starts to overheat again at a later date then...interest rates may have to go up again to cool things down again. :y :y :y
Please forgive me again, but it seems that they drop interest rates to encourage people to borrow, then when we do borrow they incresae interest rates to stop us borrowing because it's bad to have debt.
I really don't understand it all sorry
Mike
P.S. got headache now.
They want you to spent money to keep the economy moving and growing at a sustainable rate......this is not happening at the moment....hence the interest drop to get things going again.
But they do not want you to "overspend" on cheap credit...as this can lead to inflation.......boom and bust. :y :y
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Its like a badly controlled servo system. If it overshoots it takes so long to notice its wrong that the error is massive, so you apply a large correction which makes it overshoot in the other direction, etc.
IF they had noticed when the house prices started to go silly and raised rates then, this would have stopped all those silly people with interest only mortgauges, and cooled the whole thing. Fine control, not panic action.
Ken
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Its like a badly controlled servo system. If it overshoots it takes so long to notice its wrong that the error is massive, so you apply a large correction which makes it overshoot in the other direction, etc.
IF they had noticed when the house prices started to go silly and raised rates then, this would have stopped all those silly people with interest only mortgauges, and cooled the whole thing. Fine control, not panic action.
Ken
Ive got one of those... :y
The diference for me between intrest only and repayment is about £250 pcm.
We stick 4 times that a month away as savings and blast it against the mortgage once a year.
Although its a dangerous game if you dont save somewhere...
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Its like a badly controlled servo system. If it overshoots it takes so long to notice its wrong that the error is massive, so you apply a large correction which makes it overshoot in the other direction, etc.
IF they had noticed when the house prices started to go silly and raised rates then, this would have stopped all those silly people with interest only mortgauges, and cooled the whole thing. Fine control, not panic action.
Ken
Ive got one of those... :y
The diference for me between intrest only and repayment is about £250 pcm.
We stick 4 times that a month away as savings and blast it against the mortgage once a year.
Although its a dangerous game if you dont save somewhere...
One good thing about repayment mortgages is that the longer you pay them the more capital you pay off as opposed to interest.
Our mortgage has been around £900 per month for years....initially that was approx £600 interest ....£300 paid off.....now it is roughly £200 interest ....£700 being paid off.
Try renting a nice detached house for £200 PCM.....If people can sit it out it will all be fine in a year or so. :y :y :y
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Its like a badly controlled servo system. If it overshoots it takes so long to notice its wrong that the error is massive, so you apply a large correction which makes it overshoot in the other direction, etc.
IF they had noticed when the house prices started to go silly and raised rates then, this would have stopped all those silly people with interest only mortgauges, and cooled the whole thing. Fine control, not panic action.
Ken
Very good analogy ;D
We can be thankful Gordon Brown was only the chancellor during the boom and not designing cruise control systems for GM. :o
It was plain to see several years ago that the binge of borrowing and spending was not sustainable and a little correction then might have helped. Problem is, he who makes the first move starts maiing less profits, earning smaller bonuses and risks egg in their face, etc.. etc..
It works on an international level as well as an inter-bank level. Why should we cool our economy when the US, China, etc.. will only overtake us?
I imaghine when things pick up again everyone will forget the lessons, regulation will become a dirty word and the cycle will repeat. ::)
Kevin
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Its like a badly controlled servo system. If it overshoots it takes so long to notice its wrong that the error is massive, so you apply a large correction which makes it overshoot in the other direction, etc.
IF they had noticed when the house prices started to go silly and raised rates then, this would have stopped all those silly people with interest only mortgauges, and cooled the whole thing. Fine control, not panic action.
Ken
Ive got one of those... :y
The diference for me between intrest only and repayment is about £250 pcm.
We stick 4 times that a month away as savings and blast it against the mortgage once a year.
Although its a dangerous game if you dont save somewhere...
Yeah, sorry I was thinking of the buy to let market where people were taking on huge mortgauges relying on house prices rising to make a profit. You kind of forget that some people actually want to live in their house.
Ken
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Its like a badly controlled servo system. If it overshoots it takes so long to notice its wrong that the error is massive, so you apply a large correction which makes it overshoot in the other direction, etc.
IF they had noticed when the house prices started to go silly and raised rates then, this would have stopped all those silly people with interest only mortgauges, and cooled the whole thing. Fine control, not panic action.
Ken
Very good analogy ;D
We can be thankful Gordon Brown was only the chancellor during the boom and not designing cruise control systems for GM. :o
It was plain to see several years ago that the binge of borrowing and spending was not sustainable and a little correction then might have helped. Problem is, he who makes the first move starts maiing less profits, earning smaller bonuses and risks egg in their face, etc.. etc..
It works on an international level as well as an inter-bank level. Why should we cool our economy when the US, China, etc.. will only overtake us?
I imaghine when things pick up again everyone will forget the lessons, regulation will become a dirty word and the cycle will repeat. ::)
Kevin
For sure....human nature will see to that. :-/ :y
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Question:
if they give the savers this new low interest rate, and inflation is like 5%? dont htis mean savers are loosing value on their money?
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Question:
if they give the savers this new low interest rate, and inflation is like 5%? dont htis mean savers are loosing value on their money?
Probably. I have noticed the halfax rates have been plumeting for a while, and they havent even been informing me. :-/
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I would imagine that part of the reason for the interst rate cut is so that the banks will charge each other less interest on the money they lend to each other,which hopefully will stimulate much needed .liquidity in the industry
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Bradford and Bingley have droped thier saving rate .5% immediately on todays news. :-/
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Following on from this interest rate cut today the London Stock Exchange has plummeted dramatically! Here comes another round of weak £ against the $ and Euro!
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Following on from this interest rate cut today the London Stock Exchange has plummeted dramatically! Here comes another round of weak £ against the $ and Euro!
ALL global stock indices have fallen, not just here in the UK. Indeed, US stocks fell for the first time ever on news of the result of a presidential election!
Oil is down to $57.
The pound may slip against other currencies - or it may not. Remember that the US Fed rate is now 1.5%, so the technical advantage lies with sterling.
The credit crunch was NOT caused by low interest rates, as such, but by the selling at highly-leveraged income/debt ratios at low introductory rates to people in the US who could not afford them. We imported the problem as our banks bought what they believed was Triple-A rated debt...only to find it was sub-prime. The situation was made worse by an EU mark-to-market ruling which forced banks to downvalue their assets. Note that this ruling was axed rather hurriedly a couple of weeks back.
The reason why the rate has been lowered is to increase the money velocity in the economy. It is a sensible thing to do economically.
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Bring it on ;D ;D ;D My morgage will come down a decent chunk..did last time and this is 3 times as much. :y
fuel prices droping, food prices dropping, might be able to balance the budget.... and keep the whisky flowing. :y
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Bring it on ;D ;D ;D My morgage will come down a decent chunk..did last time and this is 3 times as much. :y
fuel prices droping, food prices dropping, might be able to balance the budget.... and keep the whisky flowing. :y
but they are not dropping as quickly as the oil price is.....
another classic case of someone making a lot of money whilst the chace is there to screw of the british public......
Gormless Brown won't step in on this one as it is making the government money all the time there is this huge difference in oil V's petrol
wenkers >:( >:(
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Bring it on ;D ;D ;D My morgage will come down a decent chunk..did last time and this is 3 times as much. :y
fuel prices droping, food prices dropping, might be able to balance the budget.... and keep the whisky flowing. :y
but they are not dropping as quickly as the oil price is.....
another classic case of someone making a lot of money whilst the chace is there to screw of the british public......
Gormless Brown won't step in on this one as it is making the government money all the time there is this huge difference in oil V's petrol
wenkers >:( >:(
And neither has Gas or Electric.. and the profits of the oil companies in the record books...... >:( >:(
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Bring it on ;D ;D ;D My morgage will come down a decent chunk..did last time and this is 3 times as much. :y
fuel prices droping, food prices dropping, might be able to balance the budget.... and keep the whisky flowing. :y
only any good if you've still got a job :-/
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Bring it on ;D ;D ;D My morgage will come down a decent chunk..did last time and this is 3 times as much. :y
fuel prices droping, food prices dropping, might be able to balance the budget.... and keep the whisky flowing. :y
only any good if you've still got a job :-/
Agreed......... :)
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i have still got a job by the way but quite worried about the future as i design timber frame houses for a living and it ain't exactly a secure industry :-/
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I don't think the rate cut will be passed on, the last one wasn't >:(
My guess is that the full 1.5% will be cut from people's savings accounts....but the same will not happen for people on the standard variable mortgage rate.
As the government/people now have such a big stake in some banks....I feel that Gordon brown and Alastair Darling should be INSISTING that the banks pass on ALL the reductions as opposed to asking if they might like to do so.
The banks seem to be dismissive of both the British people and the British Government. :y :y :y
afaik the government have said that they will put the money into the banks but havent actually done so yet (a classic labour tactic),so I suppose we taxpayers are prospective shareholders rather than actual.