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What does everyone think about this? Is this just a shameless advert or does it contain anything factual. Has anyone heard any rumours about the recent mpc voting. Another quarter point cut and I'm going to hibernate for 6 months.

How on earth can the BofE raise rates partly in response to huge increases in house prices and then set about cutting when there original intention as hardly been achieved. In fact from recent press reports prices are still going up. Mervyn King needs to set about smacking a few backsides.

Observer Article

Rates must fall soon, so take out a tracker

Jill Insley

Sunday February 12, 2006

The Observer

Interest rates might not have fallen last week, but Cash is reliably informed that four out of nine members of the Bank of England Monetary Policy Committee voted in favour of a cut. Although house prices have started rising again, a further rate cut is undoubtedly necessary, with lenders reporting rapidly increasing levels of 'non-performing loans'. Thankfully, anecdotal evidence suggests people are trying to curtail their spending, taking pressure off inflation rates.

Economists, including our own William Keegan, expect a base rate cut possibly as soon as March, but by May at the latest. Home buyers can maximise the benefit of any cuts by switching to a tracker that will follow the base rate downwards. Lambeth Building Society is selling loans pegged at 0.25 per cent below base for two years, producing a current rate of 4.25 per cent (£440 arrangement fee). Alternatively, if you are remortgaging and looking for a deal with free legal work and valuation, broker London and Country (0800 373 300) is selling Bank of Scotland loans pegged at 0.51 per cent below base for two years (current rate 3.99 per cent) with a fee of £1,499, or pegged at 0.25 per cent below base, again for two years, with a fee of £599. Borrowers seeking loans of more than £173,000 should go for the 0.51 per cent below base option; those wanting smaller loans are better off with the lower fee.

Savers can mitigate the rate cut damage by making sure their interest is earned tax-free, using their cash Isa allowance. Currently, the best 'no notice' deal is from the Alliance and Leicester, paying 5.2 per cent gross on deposits from £1. If you prefer fixed-rate bonds, Northern Rock is paying 5.01 per cent gross (but taxable) on sums from £1 over one, three and five years.

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Savers can mitigate the rate cut damage by making sure their interest is earned tax-free, using their cash Isa allowance. Currently, the best 'no notice' deal is from the Alliance and Leicester, paying 5.2 per cent gross on deposits from £1. If you prefer fixed-rate bonds, Northern Rock is paying 5.01 per cent gross (but taxable) on sums from £1 over one, three and five years.

Don't think so for me. My mind was almost made up last week. I won't be holding sterling if I can help it.

Edited by OnlyMe

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Mainstream View- often wrong...

Before you do it, take a look a comparison between Gilt rates and the US Ten year (TNX)

10 year bond 4.581. How do UK rates compare?

The US economy does not appear to be slowing although house prices certainly seem to be taking a hammering in the hot spots. Greenspan has always said that the US could weather a HPC due to the localized nature of the "froth." I am still betting on the US $ to outperform Sterling because the UK is moving into recession. Its the contrarian view it seems and I know Buffet has tried to back against the US $ and lost 381 million doing so..

Edited by Realistbear

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DrBubb,

Basket of currencies maybe, maybe hedge, European utilitity stocks, a few "dull" commodites and a few food/basics. Not sure at the moment, but it will be spread.

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  • 301 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%



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