Bank Rate down 1.5%!

[Benarbia]

If it is variable they don't have to pass it on.

IF SOME HAS A TRACKER RATE MORTGAGE ALREADY - WHICH TRACKS THE BANK THE ENGLAND then it HAS TO DROP THE FULL 1.5%

 

[denislawsbackheel]

actually many new trackers set up in the last month or so have a clause limiting the rate below which they will not drop. It is about 3%. Most Building Societies have said they will pass on today's drop to trackers but are 'reviewing' all other products.

 

[Benarbia]

Nationwide won't allow it to drop below 2.75% but most banks don't have that inclusion

 

[brooklandsblue]

Perhaps Brooklandsdickhead doesn't understand that. He is an executive you know.

I don't have a mortgage anymore.

 

[M18CTID]

If it is variable they don't have to pass it on.

IF SOME HAS A TRACKER RATE MORTGAGE ALREADY - WHICH TRACKS THE BANK THE ENGLAND then it HAS TO DROP THE FULL 1.5%

Point I was making is that some banks have increased the gap between the base rate and their own tracker rate these past few days so although they will have to pass on the full 1.5%, new customers who have just taken out a tracker mortgage will be paying a higher rate than existing tracker customers.

 

[Ronnie the Rep]

Perhaps Brooklandsdickhead doesn't understand that. He is an executive you know.

I don't have a mortgage anymore.

why, were you reposessed?

 

[Ronnie the Rep]

This won't make much of a difference to the credit crunch unless the banks start lending to each other again. the Libor was 1% above the bank base rate this morning. i wonder what will happen now?

 

[brooklandsblue]

Perhaps Brooklandsdickhead doesn't understand that. He is an executive you know.

I don't have a mortgage anymore.

why, were you reposessed?

No I got into the property market in 2002/3, took some risks and was lucky enough to pay my mortgage off in 2007.

 

[denislawsbackheel]

Regarding Tracker rates Lenders such as HBOS, Nationwide, Abbey and HSBC all impose minimum tracker rates, which means borrowers' rates will either never go below a certain level (normally 3%) or the bank will stop reducing the rate if the Bank of England's base rate falls below a certain level (again, normally 3%)

 

[Ronnie the Rep]

Regarding Tracker rates Lenders such as HBOS, Nationwide, Abbey and HSBC all impose minimum tracker rates, which means borrowers' rates will either never go below a certain level (normally 3%) or the bank will stop reducing the rate if the Bank of England's base rate falls below a certain level (again, normally 3%)

the danger is that there will be no room for manoever if it drops much farther because we don't want anything else restricting the flow of cash. one of the societies put their rates UP yesterday becasue they couldn't borrow enough from interbanks to support demand from their customers. go figure an exit strategy from that!!