Jump to content
House Price Crash Forum

Recommended Posts

I've contact SaveOurSavers with the following idea to see if it can be implemented by them.

Contact a building society (not a bank) and do a deal with them such that the more savers they can encourage to save with that one BS, the higher the interest rates they pay, and try to get to something like 4 to 5% interest for a flexible on-line account.

This would give the one particular BS a load of business, but would starve the remaining banks and building societies of savers cash.

This competition may put pressure on the BoE to raise interest rates, which in turn would reduce house prices.

I'm convinced the only parameter that will reduce prices is an increase in BoE base rates.

Would this work, or are there subtleties I do not know about? Would the chosen BS tend to lend money back to the institutions being starved of savers cash?

I feel we need to do something, the government are just taking the w e e w e e.

cheers,

Nick

Share this post


Link to post
Share on other sites

I've contact SaveOurSavers with the following idea to see if it can be implemented by them.

Contact a building society (not a bank) and do a deal with them such that the more savers they can encourage to save with that one BS, the higher the interest rates they pay, and try to get to something like 4 to 5% interest for a flexible on-line account.

This would give the one particular BS a load of business, but would starve the remaining banks and building societies of savers cash.

This competition may put pressure on the BoE to raise interest rates, which in turn would reduce house prices.

I'm convinced the only parameter that will reduce prices is an increase in BoE base rates.

Would this work, or are there subtleties I do not know about? Would the chosen BS tend to lend money back to the institutions being starved of savers cash?

I feel we need to do something, the government are just taking the w e e w e e.

cheers,

Nick

Nice idea but a little naive I am afraid.

The only way it could work is if everyone, at the same time, withdrew their money from all the banks/building societies and paid it into one building society - and that building society agreed to lend at say 5% and pay savers 4%.

Unless everyone did it, that bank would never get anyone to borrow from them. As long as other banks have money to lend at lower rates - they will get the business.

I've often thought the internet ought to have given consumers real power.

How about 'No one buys any petrol from one of the following Esso/Shell/BP/Texaco etc - until they lower the price of petrol by 25p per litre.

Then, and only then, will we all start buying from them.

Then 'No one buys any petrol from one of the following (next one in the list) until they drop the price a further 10p.

etc. etc.

Theoretically, if everyone acted together, you could force the price of everything down to almost cost.

This too is a little naive though.

It will never happen. People can't be a r s e d.

Share this post


Link to post
Share on other sites

As said, people may think this a great idea in principal but solidarity hits the wall when individuals are required to actually do something.

And would any one particular building society be prepared to break ranks anyway?

That said, I'd be up for it.

Share this post


Link to post
Share on other sites

The queues outside N. Rock in 2007 weren't organised, apart from everyone seeing them on the news and joining in, and we were hours from closing all the cashpoint machines, apparently. Now if it were organised?!?

Edited by deflation

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 150 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.