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shell

'higher Mortgage Rates For Building Society Customers'

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http://business.timesonline.co.uk/tol/busi...icle6802752.ece

'Doubtless some savers will be delighted, but there�€™s really no need for anyone else to welcome news that National Savings and Investments (NS&I) is almost doubling the rate of interest on its cash Isa.

The move, announced yesterday, follows a £1.3 billion outflow of savings from NS&I during the first three months of its financial year and comes at a time when the state-owned lender�€™s rates have been left looking highly uncompetitive by those of the banks and building societies.

Doing its best to look gracious, NS&I said it had made the decision �€œas it continues to follow a pricing strategy designed to balance the interests of its savers, the taxpayer and the stability of the financial services market�€�.

The truth is that, in all likelihood, this move will have a baleful effect on the financial services market. Rates paid to savers have been moving up steadily in recent months, a direct consequence of the need among financial institutions to raise more capital, so NS&I�€™s move will make life just that little bit harder for savings institutions.Sympathy may be limited for the banks, but spare a thought for Britain�€™s building societies, who are already unhappy at the unfair advantage Northern Rock could enjoy if it is broken up along lines proposed by the Government.

Unlike the banks, the building societies do not borrow at Libor, but tend to fund their mortgage lending from savers�€™ deposits. NS&I�€™s move is therefore likely to push up their funding costs and, indirectly, result in higher mortgage rates for building society customers.'

YAY! :D

edited by shell because accidentally pushed return button when post was incomplete

Edited by shell

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http://business.timesonline.co.uk/tol/busi...icle6802752.ece

'Doubtless some savers will be delighted, but there��‚��„�s really no need for anyone else to welcome news that National Savings and Investments (NS&I) is almost doubling the rate of interest on its cash Isa.

YAY! :D

My savings up, house prices down.

DOUBLE YAY!

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My savings up, house prices down.

DOUBLE YAY!

we pulled 50K out in April. I suspect many others did after their interest payments on 1 April. I cant wait to see what their April-Jun withdrawal figures look like.

I dont know what they are boasting about. Their increased savings rates are a F*cking disgrace anyway.

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we pulled 50K out in April. I suspect many others did after their interest payments on 1 April. I cant wait to see what their April-Jun withdrawal figures look like.

I dont know what they are boasting about. Their increased savings rates are a F*cking disgrace anyway.

Yes. Pulled my NS&I isa last April, too. And I am trying not to get too excited about possible mortgage rate hikes for the smug n' greedy ,but it would be nice. As a saver / renter I am gutted at the prospect of low interest saving rates and inflation. BUT you never know . . . the tide may turn. And when it does, triple YAY!

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we pulled 50K out in April. I suspect many others did after their interest payments on 1 April. I cant wait to see what their April-Jun withdrawal figures look like.

I dont know what they are boasting about. Their increased savings rates are a F*cking disgrace anyway.

I'm clearing 25K out next month. W@nkers. <_<

Edited by MOP

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Why am I seeing ��‚��„� (that's 2 diamonds with question marks inside, comma, 2 more diamonds, a double quotes low down and another diamond where there should be an apostrophe? What does it all mean?

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Thinking in terms of a campaign of civil disobedience, a campaign to get people to pull their money out of nsi would give the b@rstaeds somthing to think about. Like others here, I have removed a substantial sum this year.

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Why am I seeing ��‚��„� (that's 2 diamonds with question marks inside, comma, 2 more diamonds, a double quotes low down and another diamond where there should be an apostrophe? What does it all mean?

It seems to be a common rendition error in quoted/pasted text.

Why, I don't know.

ED: pasted (not me...)

Double Ed: Look what it did there!

Edited by yellerkat

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'Doubtless some savers will be delighted, but there��‚��„�s really no need for anyone else to welcome news that National Savings and Investments (NS&I) is almost doubling the rate of interest on its cash Isa.

Horses, stable doors here. I had a bunch of old cash ISAs, and when I looked this year, all but one had dropped to under 1%. So I got off my backside and moved them to a better deal with this year's least-bad rate.

Bye bye, NS&I.

A doubling of their ISA rate doesn't actually make it a Best Buy, until/unless it's happened more than once in a couple of months.

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I'm clearing 25K out next month. W@nkers. <_<

Exactly.

But will their measly interest rate rise really send mortgage rates soaring at building societies (apart from in my dreams)?

I need to know because there are many middle class families in Brighton living in 500 k 3/4 bedroom houses with £200 k mortgages where no one is employed (or are earning a pittance in freelance work) and yet they are jetting round the world and generally thriving on historically low interest rate cuts - while I rent and fret about my hard earned non STR savings disappearing into the black hole of THEIR debt via QE n' inflation.

I need these people to suffer horribly. Now.

'Hardworking families' ? Debt ridden, irresponsible smugs, more like. :)

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But will their measly interest rate rise really send mortgage rates soaring at building societies (apart from in my dreams)?

It's heading in the right direction.

As savings disappear from the UK system, something will have to give.

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Don't get complacent guys, saftey is the place to be, and in a deflationary environment real IRs become very attractive.

Most banks will fail in the next down wave, as the government will not be able to stump up the TNs to save them. Eventually government debt will come under pressure, which is why its nice to have the NSANDI, no worries about bond prices and fairly quick access to your money.

They lowered rates as people flooded to them during the crisis, now we have this recovery/head fake and they need to raise their rate to attract savers.

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Don't get complacent guys, saftey is the place to be, and in a deflationary environment real IRs become very attractive.

Most banks will fail in the next down wave, as the government will not be able to stump up the TNs to save them.

Will Nationwide, Lloyds, Birmingham Midshires, Alliance n Leicester fail? Cos that's where I've banked the life savings - with a quarter of it in no interest NS&I.

Any clues as to what might be the sign that I've got to bung it all back in NS&I in a panic stricken online raid at 2 a.m.?

Thanks Domo.

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Guest absolutezero

Can you transfer your previous tax years' savings in?

My deal (3.8% will drop to 2%) with NatWest comes to an end in Novermber and I'll be looking for a decent rate elsewhere if they're not good enough.

I used to have NS&I as my ISA provider but pulled out when the rate dropped.

Edited by absolutezero

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