Thursday, Dec 06, 2007
Rate reduction for borrowers? Ah ahhah hahahahha hahah
Tgraph: Interest rate cut: No quick win for homeowners
Katie Tucker at John Charcol, the broker, says: "It's good to see Halifax leading the way, although its SVR was pretty hefty anyway and is still higher than Nationwide's which dropped to 6.99 per cent shortly after the MPC decision." And this is if you qualify for a loan at all!! What an i@iotic, useless decision by the MPC today. Just for the benefit of banks' P&Ls.
Posted by confused76 @ 05:49 PM (495 views) Add Comment
6 Comments
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1. Symo said...
Carol "I don't know anything about Libor" Tucker best shut up. Libor proved to be totally unaffected by the cut. Which means greater pain for those coming off their two year fix next year.
BofE should have had the cojones to stick like the ECB>
2. the reaper said...
there's a real phoney war on going on right now as most VI's pretend everything is fine,when in reality they only have to look at LIBOR to see what the rest of the world thinks and it's not what they're thinking
3. yorkshireman said...
An expert is defined as "a person with special knowledge or ability who performs skillfully" Here is a pearl of wisdom from this article - "Experts say further cuts in Bank Rate early in the New Year will be needed to reduce the margin and make mortgages more affordable for homeowners."
Oh my goodness, these experts have lost the plot. Only one thing will make mortgages more affordable for the electorate - a very big reduction in house prices, not far..ng against a thunderstorm.
I am reminded of an interview outside 10 Downing Street at the end of the Falklands War. Mrs Thatcher, having made the announcement of an end to hostilities was asked to comment. Her response to the assembled press and experts was "Gentlemen, it's over", shortly before she turned her back and walked away.
Experts pay heed. The housing boom is over.
There, I feel better now.
4. Marvin said...
So let me get this right, the BoE drops interest rates ostensibly for people who have over extended themselves, to help them pay off there current debts? or just extend their line of credit until Armageddon ? I presume as a saver, that the interest on my savings also now drops, to the benefit of the Banks whose present difficulties are somehow my fault!
They all deserve a run on them.!!! the longer the phoney war goes on the more painfull its going to be for all of us.
GOD I'm depressed today.
Life don't talk to me about life
5. Greasemonkey said...
Its economics - prices will find their own levels - the rate cut won't make much difference - but it might help hold up prices, or reduce the gains/losses. It's a pity the BofE bottled out and didn't keep rates on hold for a while to actually see what happens - but they are hardly independant - more politics from Gordon Clown.
6. Duncan said...
As I have suggested before there is a way the Government could fudge their way out of this.
Include things like the price of TVs and computers in the inflation calculations so the inflation
figures come out really low. Whoops they are doing that already. I know take things like petrol
and food out of the inflation figures (if they don't include housing why include those).
Result "2% inflation" an average wage of £70000 a year and house prices would seem cheap
(especially if a loaf of bread was £3). It's basically what happened in the 70's
:- Duncan