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Lepista

Nationwide Cutting Interest Rates...

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They obviously don't want/need the deposits...

I can see a self-induced bank run.

They will all be doing it soon, how else can they cut mortgage rates? Scr3w the saver, again and again. the ones who didn't cause or contribute to the mess are the ones who pay the price. :angry:

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Are they expecting a drop in Interest Rates from the BOE?

I doubt it.

Edit: Splelning

Edited by Bug16

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Not necessarily bad news. Bank deposits are their liabilities as they pay you for the privilege. If they have huge deposits but little lending business the books won't balance.

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They will all be doing it soon, how else can they cut mortgage rates? Scr3w the saver, again and again. the ones who didn't cause or contribute to the mess are the ones who pay the price. :angry:

Of course, everybody is affected by the credit crunch, whether you contributed to it or not. It's all getting paid for by the savers and tax-payers.

It may not be fair, but that's life I'm afraid...

If you were on the dole with no savings and a nice house courtesy of the government paid, then you might just about escape most of the credit crunch mess...

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TBF, IRs had gone up quite a bit in the last month, so I suspect they are just settling back in line with the swaps rates that they keep banging on about.

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Guest Winnie

The VI talk about oil increases coming out of the inflation data by Novemberish suggests a conspiracy to force the BoE to drop IRs then. Haliwide are in cahoots with the government as we know - so they KNOW in advance. Merv wil be forced to cut - it will eiethr be part of Gronad's relaunch or the new launch of the new nulab leader.

We have a couple of months max before the pound is toast for a good two years. You have been warned!

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The VI talk about oil increases coming out of the inflation data by Novemberish suggests a conspiracy to force the BoE to drop IRs then. Haliwide are in cahoots with the government as we know - so they KNOW in advance. Merv wil be forced to cut - it will eiethr be part of Gronad's relaunch or the new launch of the new nulab leader.

We have a couple of months max before the pound is toast for a good two years. You have been warned!

Anything to get the proles borrowing more than they can afford to buy a house ten times their salaries. Anything. The moneymen are getting desperate now. Sadly, I too have to say I can see rate cuts before the end of the year, even with inflation doing an impression of Apollo 11.

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Nationwide have been inundated with new money over the last few months - there was a story a while back about how their customer service department was struggling to keep up with the applications for new accounts. They've been viewed as a relatively safe place to keep your money because they have a reasonably sound balance sheet and have been far from reckless with their lending.

It doesn't surprise me, then, that they would start to drop their savings rates. Doing that while keeping mortgage rates unchanged will increase their profitability, and retaining those profits will further increase the stability of their financial position. Of course, there's a risk that savers will take their money elsewhere, but they know that, and have presumably done the math and concluded that the net result of this action will still be positive for them. In fact, they may even be trying to lessen their administrative costs by making themselves less attractive to new custom for a time.

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This is significant news.

If there really were a credit crunch you'd expect high deposit rates in order to attract fresh money to lend out at even higher lending rates.

But low deposit rates (and today's rates are low, a higher rate tax payer can't even cover RPI from a deposit account), and even more significantly falling deposit rates, are evidence against there being a credit squeeze. The lunatic fringe of lending has disappeared, but if you have a sensible deposit it's fairly easy to get a mortgage even today, what's really happened is a collapse in demand for prudent mortgages.

Edited by silver surfer

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Are they expecting a drop in Interest Rates from the BOE?

No, they just aren't expecting a rise in the near future, which they were before new weak economic data was released. Doesn't mean Merv and co won't raise rates though.

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As far as i can Nationwide is a Mutual, ie a building society and is not a bank.

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No, they just aren't expecting a rise in the near future, which they were before new weak economic data was released. Doesn't mean Merv and co won't raise rates though.

Are you sure the £ is falling today quite hard.. May be it is the first sign of which way interest rates will go next.

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One year fixed rate bonds.

Nationwide 7% on balance of £50,000

Northen Rock 6.75% min bal is £1

Chelsea 6.75% min £1000 max £500,000

Abbey 6.35 -6.45%

RBS 6 -6.25%

Barclays 6%

Hsbc 6%

Lloyds 6%

BoE base rate 5%, and most of the above are giving out mortgages below their one year fixed rates.

Oh dear.

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One year fixed rate bonds.

Nationwide 7% on balance of £50,000

Northen Rock 6.75% min bal is £1

Chelsea 6.75% min £1000 max £500,000

Abbey 6.35 -6.45%

RBS 6 -6.25%

Barclays 6%

Hsbc 6%

Lloyds 6%

BoE base rate 5%, and most of the above are giving out mortgages below their one year fixed rates.

Oh dear.

Making money on arrangement fees and trying to grab the safest borrowers from competitors. I guess.

Nationwide bond dropped to 6.8% the other day (at least the advert in their window changed)

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Maybe I'm being thick but I can see any reductions in the last few days apart from the Fixed Rate Bonds. The Regular Saver and e-Savings changed back in May. I can't see any recent changes.

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http://www.uk-finance-news.co.uk/nationwid...lex-accounts/88

Lower earning Flex Account customers at Nationwide will be hit by a reduction in interest rates that come into force on August 1st.

Nationwide will be paying a varied interest rate to its Flex Account customers based on how much is paid into the account on a regular monthly basis. The new rates are listed below, and for some of us it may well be time to have a look around at other bank rates.

If you make regular monthly deposits of £500 to £999 the interest you receive will be 0.5%

Monthly deposits of £1000 to £1499 will see interest fall from 3.5% to 2%.

Monthly deposits of under £500 will stay at 0.1%.

Nationwide suggests that the changes will not affect most of its basic account customers “as they already receiving 0.1% interest, because they pay in less than £500 per month.”

Nationwide are also quick to point out that the majority of its rivals do not pay any interest on basic current accounts.

It was only the flex account which I put on my thread which was posted the same time as this one.

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  • 395 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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