I feel like this is a mistake. If we creep back down to stupidly low again it will leave no room for stimulating the economy and once again encourage people to borrow beyond their means, leading to a housing crash if inflation rises again.
If it can get to ~3% by the time my mortgage comes up next September that would be lovely 😄
I read somewhere that Goldman Sachs predicts continuous drops until November 2025.
I have a question for economists: is there a significant difference between someone parking £1,000 with the Bank of England vs lending £1,000 to the government via bonds? As far as I can tell both actions will net me around £45-£50 per year, so is this the same from the government’s/BoE’s perspective? And can the BoE raise interest rate as a way to raise funds for the government?
I admit I am a bit of a noob about this stuff but what is the interest rate and how does it effect stuff so much? I assume them cutting it is very good?
my mortgage offer came through today.
i guess we’ll see if itll go any lower, but doubt it.
4.44%
When the USA start their little trade war they’ll head back up again.Â
Bastards! Here I am £12k making no interest sitting in my mortgage free home and everyone else gets a pay off
how generous, meanwhile the euro is at 3.4% and japan is at 0.25%. is this stuff just made up? what global conditions do we face that the rest don’t? wasn’t this over a fuel crisis that’s already over?
What does this mean for a dumbo like me, stronger pound and better economy?
Great news if banks would be as swift lowering the rates I pay back on my credit cards.
Copying my reply to someone asking about what this could mean for mortgage rates below for visibility:
Professional in the mortgage sector here, but as always with finance -check with your own trusted contact rather than a stranger. Many mortgages on tracker rates will directly change for the better thanks to this. Most mortgages will not be affected immediately as they will be on a fixed rate. Available rates if you went for one now wouldn’t change much as banks set their rates on other factors- but do include the base rate. Mainstream lenders will have set their current range with the knowledge the base rate could change today.
Checks out. Just did the mortgage a few weeks ago after they didn’t drop it.
My mortgage is due for renewal this month. A few months ago, I was offered 4.11% to fix for 5 years by my current bank thought I’d wait it out then last month I checked it was 4.26% and today after the announcement it’s 4.41% but if I go with another provider who’s rates are lower they have £999 product fees. I should’ve fixed months ago 😔
Bollocks, it should be higher. We need to get out of this low interest rate hellhole we had dug ourselves into.
15 comments
I feel like this is a mistake. If we creep back down to stupidly low again it will leave no room for stimulating the economy and once again encourage people to borrow beyond their means, leading to a housing crash if inflation rises again.
If it can get to ~3% by the time my mortgage comes up next September that would be lovely 😄
I read somewhere that Goldman Sachs predicts continuous drops until November 2025.
I have a question for economists: is there a significant difference between someone parking £1,000 with the Bank of England vs lending £1,000 to the government via bonds? As far as I can tell both actions will net me around £45-£50 per year, so is this the same from the government’s/BoE’s perspective? And can the BoE raise interest rate as a way to raise funds for the government?
I admit I am a bit of a noob about this stuff but what is the interest rate and how does it effect stuff so much? I assume them cutting it is very good?
my mortgage offer came through today.
i guess we’ll see if itll go any lower, but doubt it.
4.44%
When the USA start their little trade war they’ll head back up again.Â
Bastards! Here I am £12k making no interest sitting in my mortgage free home and everyone else gets a pay off
how generous, meanwhile the euro is at 3.4% and japan is at 0.25%. is this stuff just made up? what global conditions do we face that the rest don’t? wasn’t this over a fuel crisis that’s already over?
What does this mean for a dumbo like me, stronger pound and better economy?
Great news if banks would be as swift lowering the rates I pay back on my credit cards.
Copying my reply to someone asking about what this could mean for mortgage rates below for visibility:
Professional in the mortgage sector here, but as always with finance -check with your own trusted contact rather than a stranger. Many mortgages on tracker rates will directly change for the better thanks to this. Most mortgages will not be affected immediately as they will be on a fixed rate. Available rates if you went for one now wouldn’t change much as banks set their rates on other factors- but do include the base rate. Mainstream lenders will have set their current range with the knowledge the base rate could change today.
Checks out. Just did the mortgage a few weeks ago after they didn’t drop it.
My mortgage is due for renewal this month. A few months ago, I was offered 4.11% to fix for 5 years by my current bank thought I’d wait it out then last month I checked it was 4.26% and today after the announcement it’s 4.41% but if I go with another provider who’s rates are lower they have £999 product fees. I should’ve fixed months ago 😔
Bollocks, it should be higher. We need to get out of this low interest rate hellhole we had dug ourselves into.
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